Top Research Reports For UnitedHealth, Walmart & AT&T
Zacks Investment Research | Jun 19, 2018 12:03AM ET
Tuesday, June 19, 2018
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth (UNH), Walmart (NYSE:WMT) and AT&T (T). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see
UnitedHealth's shares have outperformed the Zacks Medical Insurance industry year to date (up +15.6% vs. +13.3%). The Zacks analyst thinks the company's robust Government business and continued strong performance at Optum are driving long-term growth. Its international business and strong capital position driving business investment are the other positives.
The company has been witnessing an increase in membership over the past many years. It again lifted its 2018 earnings guidance, buoying optimism among investors in the stock. The company has witnessed its 2018 estimate increase by 1.2% to $12.62 over the past 90 days.
However, membership loss in its fee-based commercial as well as Brazilian businesses will contract the overall membership growth for UnitedHealth Group. Additionally, higher medical care ratio raises concern.
(You can ).
Get The News You Want
Shares of Walmart have lost -16% in the last six months, underperforming the Zacks Supermarkets industry's -14.5% decline in the same time period. The Zacks analyst thinks Walmart is poised to gain from its strong e-commerce initiatives, particularly expansion of online grocery delivery. This, along with efforts to drive brick-and-mortar sales should help the company maintain its sturdy U.S. comps trend.
Walmart is also undertaking efforts to improve the performance of its International unit, by shifting focus from underperforming regions to profitable countries like India and China. To this end, the company’s recent investment in Flipkart is however expected to dent the bottom line in the near term.
Further, investments related to the e-commerce initiatives and a compelling pricing strategy have been hurting Walmart’s gross margin. Nonetheless, the Flipkart deal bodes well for the long term, which along with focus on buyouts, alliances and improved delivery services should help Walmart stand firm against Amazon (NASDAQ:AMZN).
(You can ).
Get The News You Want
AT&T’s shares have decreased -11.4% in the last three months, underperforming the Zacks Wireless National industry's fall of -4.3%. AT&T is gearing up to launch the first standards-based mobile 5G services to consumers in multiple U.S. markets by the end of 2018.
The Zacks analyst thinks the company is likely to benefit from its long-pending merger with Time Warner. Given the scale of both AT&T and Times Warner, the merger is likely to reshape the industry dynamics, creating a media behemoth. The deal will allow the power packed combination of AT&T’s data and Time Warner's content.
However, AT&T’s profitability has been hurt with spectrum crunch in a saturated wireless market. In addition, the company’s wireline division is struggling with persistent losses in access lines due to competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play offerings by cable firms. These are weighing on AT&T’s revenues and margins.
(You can ).
Get The News You Want
Other noteworthy reports we are featuring today include NIKE (NKE), Thermo Fisher (TMO) and Anthem (ANTM).
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly
Today's Must Read/h6
Featured Reports/h6
The Zacks analyst is bullish on Thermo Fisher boosting top-line and new capabilities through buyouts like Patheon and FEI. Rising operating costs for product development and marketing is a concern.
Per the Zacks analyst, a number of acquisitions, Medicaid expansion in the government segment have helped the company enhance its membership base.
Per the Zacks analyst, Canadian Solar's robust project pipeline across the globe helps the company to expand its footprint worldwide.
Per the Zacks analyst, Interactive Brokers' dependence on IBG LLC will hurt financials if it fails to provide funds for taxes.
Allergan faces generic competition for key drugs Namenda XR and Restasis in 2018. The Zacks analyst says that drugs like Botox/Linzess, new drugs and cost cuts can shield it from potential sales drop.
Per the Zacks analyst, DICK'S Sporting's investments in e-commerce, technology, Team Sports and private brands should boost market share.
Per the Zacks analyst, a high inventory level of passenger cars is pushing General Motors to cut production.
The Zacks analyst is bullish on Thermo Fisher boosting top-line and new capabilities through buyouts like Patheon and FEI. Rising operating costs for product development and marketing is a concern.
Per the Zacks analyst, a number of acquisitions, Medicaid expansion in the government segment have helped the company enhance its membership base.
Per the Zacks analyst, Canadian Solar's robust project pipeline across the globe helps the company to expand its footprint worldwide.
Per the Zacks analyst, Interactive Brokers' dependence on IBG LLC will hurt financials if it fails to provide funds for taxes.
Allergan faces generic competition for key drugs Namenda XR and Restasis in 2018. The Zacks analyst says that drugs like Botox/Linzess, new drugs and cost cuts can shield it from potential sales drop.
Per the Zacks analyst, DICK'S Sporting's investments in e-commerce, technology, Team Sports and private brands should boost market share.
Per the Zacks analyst, a high inventory level of passenger cars is pushing General Motors to cut production.
New Upgrades/h6
Per the Zacks analyst, Goldman's efforts towards expense management are expected to aid bottom-line expansion in the coming quarters. Further, business diversification is a favorable factor.
Per the Zacks analyst, the acquisitions of NetSpend, TransFirst, Cayan, iMobile has driven inorganic growth. Its strong free cash flow provides immense investment opportunity.
Per the Zacks analyst, NIKE is gaining from strength in international and NIKE Direct businesses, both posting double-digit sales growth. This also drove 23 straight quarters of earnings beats.
Per the Zacks analyst, Goldman's efforts towards expense management are expected to aid bottom-line expansion in the coming quarters. Further, business diversification is a favorable factor.
Per the Zacks analyst, the acquisitions of NetSpend, TransFirst, Cayan, iMobile has driven inorganic growth. Its strong free cash flow provides immense investment opportunity.
Per the Zacks analyst, NIKE is gaining from strength in international and NIKE Direct businesses, both posting double-digit sales growth. This also drove 23 straight quarters of earnings beats.
New Downgrades/h6
The Zacks analyst is worried about Omnicom's dependence on a few big clients. Further, the company's reliance on information technology systems makes it vulnerable to cybersecurity risks.
Per the Zacks analyst, Adtalem Global's total enrollments have been sluggish for several quarters now, which is marring growth prospects.
Per the Zacks analyst, DDR Corp.'s aggressive asset disposition is likely to affect its earnings. Competition from e-commerce remains a concern for the company.
The Zacks analyst is worried about Omnicom's dependence on a few big clients. Further, the company's reliance on information technology systems makes it vulnerable to cybersecurity risks.
Per the Zacks analyst, Adtalem Global's total enrollments have been sluggish for several quarters now, which is marring growth prospects.
Per the Zacks analyst, DDR Corp.'s aggressive asset disposition is likely to affect its earnings. Competition from e-commerce remains a concern for the company.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.