Tuesday June 20 2017
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), Netflix (NASDAQ:NFLX) (NFLX) and Pepsi (PEP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
UnitedHealth’s continued strong growth at Optum as well as UnitedHealthcare segments are driving growth. The buy-rated stock’s international business and strong capital position are other positives. Moreover, the company has reduced its exposure to the troubled public exchange business.
Though this move will shield it from losses in this business, the company’s premium revenues are likely to be affected. UnitedHealth shares have underperformed the Zacks Medical-HMOs industry in the year-to-date period (up +14.4% vs. +19.2%).
(You can read the full research report on UnitedHealth here >>>).
Shares of Buy-rated Netflix have gained +68.6% over the past 12 months, outperforming the Zacks Broadcast Radio/TV industry, which has gained +22.3% over the same period. Netflix’s focus on global expansion and original content has paid off with the streaming giant adding 4.95 million net new additions in the last reported quarter, taking the total count to 98.75 million.
Going forward, the company expects to add 0.60 million subscribers in the domestic streaming segment and 2.60 million subscribers in the international segment in the second quarter. The company’s efforts to attract viewers through investing in more regional programming should also boost user base. Estimates have remained stable ahead of the upcoming earnings release.
(You can read the full research report on Netflix here >>>).
Pepsi’s shares modestly lagged the broader market over the last year (+12.6% for PEP vs. +17.6% for the S&P 500), but they outperformed the Zacks Soft Drinks Beverages industry as well as Coke (KO was +0.6%). Despite global macro challenges, Pepsi has been doing well since 2014 on the back of significant innovation, ongoing revenue management strategies, improved productivity and better market execution.
The company has been facing challenges amid the shift in consumers’ preferences. Given this backdrop, it is gradually reshuffling its portfolio toward healthier “Everyday Nutrition Products” in order to adapt to the changing customer needs of healthier lifestyles. However, apart from sluggish CSD volumes, rising volatility in global markets and increasing currency headwinds may limit top line growth.
(You can read the full research report on Pepsi here >>>).
Other noteworthy reports we are featuring today include Qualcomm (QCOM), Occidental (OXY) and Phillips 66 (NYSE:PSX) (PSX).
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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 Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Clovis' (CLVS) Growth Dependent on Rubraca, Expanding Label
Per the Zacks analyst, positive progression-free survival and safety results from ARIEL3 maintenance study may expand Rubraca's label and boost commercial uptake.
Occidental (OXY) Gains From Focus on Permian Production
Per the Zacks analyst, focus on the Permian Resources has boosted the performance of Occidental Petroleum.
Phillips 66 (PSX) to Gain from Chemical Business, Debts High
Phillips 66 expects more value from its chemicals & midstream businesses than extensive refining operations.
Newell's (NWL) Project Renewal Program to Boost Profits
Per the Zacks analyst, Newell is on track with Project Renewal Program that aims at generating cost savings and investing the same to boost growth.
ResMed (RMD) Up on Positive COPD Trial, SDB Market Potential
The Zacks analyst is bullish on the latest clinical trial result on COPD, opening up new scope in this line.
Electronic Brokerage Focus to Aid Interactive Brokers (IBKR)
The covering analyst believes Interactive Brokers' increased focus on Electronic Brokerage segment will go a long way in supporting its financials.
Macy's (NYSE:M) Omnichannel Strategy to Help Counter Waning Comps
Per the Zacks analyst, declining comps and waning margins are major concerns. However, Macy's focus on price optimization, cost containment and omnichannel capabilities may help lift performance.
New Upgrades
Zoetis (ZTS) Looks Strong Driven by Apoquel and Cytopoint
Per the Zacks analyst, Zoetis should see strong growth in companion animal portfolio in 2017 driven by Apoquel and Cytopoint, further penetration of Simparica, and ongoing uptake of new vaccines.
New Awards, Low Rig Operating Costs to Drive SeaDrill (SDRL)
A stream of drilling awards, together with SeaDrill's success in controlling rig operating costs has made the Zacks analyst turn bullish on the offshore oil and gas contractor.
Vulcan Materials (VMC) Remains Strong on Bolt-on Acquisitions
Per the covering analyst, Vulcan Materials' various bolt-on acquisitions expand its ability to serve customers and bring in operational and commercial synergies.
New Downgrades
Chipset Competition, Apple (NASDAQ:AAPL) Lawsuit to Hurt Qualcomm (QCOM)
Per the Zacks analyst, a competitive mobile phone chipset market and the $1 billion lawsuit slapped by Apple will hurt Qualcomm's profits in the future.
Leucadia (LUK) Plagued by High Network Maintenance Costs
Per the Zacks analyst, Leucadia's high network maintenance costs to upgrade computer systems to prevent any intrusion and data theft of confidential and sensitive client information strain its margin.
Weak Retail Sales & Competitors' Discounts Hit Harley (HOG)
Per the Zacks analyst, weak worldwide dealer retail sales of new motorcycles have badly hit Harley-Davidson.
UnitedHealth Group Incorporated (NYSE:UNH): Free Stock Analysis Report
QUALCOMM Incorporated (NASDAQ:QCOM): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
Pepsico, Inc. (NYSE:PEP): Free Stock Analysis Report
Occidental Petroleum Corporation (NYSE:OXY): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Original post
Zacks Investment Research