Tuesday, December 22, 2020
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 Amazon.com (AMZN), Walmart (WMT) and UnitedHealth Group (UNH). 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 >>>
Amazon shares have outperformed the broader market in the year to date period (+73.5% vs. +16.6%) on the back of solid Prime momentum and leadership in the cloud computing space.
Further, coronavirus-led spike in online orders continues to be a major tailwind. Also, solid growth in its online stores sales remains a positive. Moreover, surge in online grocery shopping is another positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance.
Moreover, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Further, improving Alexa skills and expanding smart home products portfolio are positives. However, accelerating coronavirus related expenses remain risks for the company’s margin expansion in the near term. Also, rising cloud competition poses risk.
(You can read the full research report on Amazon here >>>)
Shares of Walmart have gained +22.6% over the past year against the Zacks Supermarkets industry’s gain of +20.9%. The Zacks analyst believes that the company is gaining on rising demand for grocery and general merchandise amid the pandemic.
Stay-at-home trends are also boosting e-commerce sales, which soared 79% in the U.S. segment in third-quarter fiscal 2021. During the quarter, the top and bottom lines beat the estimates and grew year over year, with U.S. comp sales rising for the 25th straight time. Comps were fueled by strength in core categories and higher shift toward e-commerce.
Clearly, Walmart’s efforts to enhance deliveries are yielding results. Also, the company is focused on improving the International unit’s performance, evident from its recent plans to sell certain businesses. However, the company is seeing high COVID-19 costs, which are likely to prevail. Also, price investments are hurting gross margin to an extent.
(You can read the full research report on Walmart here >>>)
UnitedHealth’s shares have gained +12.9% over the past six months against the Zacks Medical Insurance industry’s rise of +10.2%. The Zacks analyst believes that expansion of the company’s health services segment provides significant diversification benefits.
UnitedHealth remains well poised to benefit from its government business, comprising both Medicaid and Medicare Advantage. A solid balance sheet and consistent cash flow generation not only encourage investments in business but also add shareholder value. Raising of 2020 earnings guidance instills investor confidence.
However, the company is witnessing a slowdown in its international operations. Increased joblessness stemming from the COVID-19 induced volatilities might hurt Commercial membership.
(You can read the full research report on UnitedHealth here >>>)
Other noteworthy reports we are featuring today include Intel (INTC), Morgan Stanley (MS) and GlaxoSmithKline (GSK).
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Sheraz Mian
Director of Research
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
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Walmart’s (WMT) Sales to Gain on Robust Ecommerce Business
Strong Service and Benefit Business Aids UnitedHealth (UNH)
Featured Reports
Intel (INTC) Banks on Portfolio Strength Amid 7 nm Delay
Per the Zacks analyst, solid uptake of thelatest Xeon Scalable processors, and demand from cloud service providers will drive Intel’s growth.
Buyout, Restructuring Aid Morgan Stanley (MS) Amid Low Rates
Per the Zacks analyst, Morgan Stanley’s inorganic growth efforts and focus on less capital-markets dependent businesses will likely continue to aid the top line amid current near-zero interest rates.
Glaxo’s (GSK) Cancer Pipeline Grows Amid Rising Competition
The Zacks analyst is encouraged by the company’s initiatives to focus on its oncology pipeline. However, competitive pressure on its HIV and respiratory drugs is rising.
Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt
Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.
E-commerce Growth Helps FedEx (FDX), Despite Steep Costs
The Zacks analyst believes that the surge in e-commerce demand in the current scenario is a huge positive. However, high operating expenses are limiting bottom-line growth.
Expanding Cloud Portfolio & Partner Base Aids VMWare (VMW)
Per the Zacks analyst, VMware is benefiting from strong demand for its expanding cloud-based solutions, strong partner base, and Carbon Black & Pivotal acquisitions.
YUM! Brands (YUM) Banks on Digital Efforts Amid High Costs
Per the Zacks analyst, YUM! Brands increased focus on digital initiatives and refranchising efforts bode well.
New Upgrades
WestRock (WRK) Bets on E-Commerce Demand & Acquisitions
Per the Zacks analyst, WestRock will gain on pandemic-driven robust e-commerce demand.
Outsourcing & Leasing Pipeline Aid Jones Lang LaSalle (JLL)
Per the Zacks analyst, evolving outsourcing trends, improvement in pipelines in both leasing and capital markets, and healthy balance-sheet strength augur well for Jones Lang LaSalle.
Strong Underwriting , Cost Control Aid Amerisafe (AMSF)
Per the Zacks analyst, the company’s focus on loss control and safety programs as well as active claims management generates strong underwriting results, which leads to sustainable profitability.
New Downgrades
Sales Disruption Hits Thermo Fisher’s (TMO) Major End Market
The Zacks analyst is concerned about Thermo Fisher’s recent industrial and applied end market performance which is significantly affected by business disruptions due to the pandemic.
Lower Demand & Higher Costs to Hurt Crown Holdings (CCK)
The Zacks analyst is concerned that bleak demand in the transit packaging business owing to the coronavirus pandemic as well as higher raw material costs will impact Crown Holdings’ results.
Elevated Costs, Low Rates Hurt Interactive Brokers (IBKR)
Per the Zacks analyst, higher costs because of investments in technology upgrades will likely hamper Interactive Brokers’ profits. Its top line might be hurt due to near-zero interest rates.
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Walmart Inc. (WMT) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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