Thursday, January 27, 2022
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 Meta Platforms, Inc. (
FB
), UnitedHealth Group Incorporated (
UNH
), and salesforce.com, inc. (
CRM
). 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 >>>
Shares of
Meta Platforms
have underperformed the S&P 500 over the past year (+11.2% vs. +16.7%) on persistent worries about stringent regulatory measures. The Zacks analyst believes that Meta Platforms has been benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for Instagram, WhatsApp, Messenger and Facebook Watch has been a major growth driver.
Fb’s focus on becoming a metaverse company is noteworthy. Meta’s strong balance sheet and cash flow generating ability is another key catalyst. Meta, however, is facing stiff competition from Snap and Twitter in the advertising space. Increasing regulatory headwinds in the EU and other countries is a major concern.
(You can
read the full research report on Meta Platforms here >>>
)
UnitedHealth
shares have gained +12.8% over the past six months against the Zacks Medical HMO industry’s gain of +9.2%. The Zacks analyst believes that the strong growth at Optum as well as UnitedHealthcare segments have been driving revenues. A growing government business and a strong capital position are other positives.
UNH’s top line is likely to benefit from a strong market position as well as new deals, renewed agreements and expansion of service offerings. A sturdy balance sheet and solid cash generation abilities enable business investments as well as prudent capital deployment. Softness in commercial business due to the pandemic remains a major concern, though.
(You can
read the full research report on UnitedHealth here >>>
)
Shares of
salesforce
have lost -29.3% in the last three months against the Zacks Computer Software industry’s loss of -12.2% as sentiment has soured on the stock and other faster-growing software players in the evolving new interest rate environment. Stiff competition, unfavorable currency fluctuations and increasing investments on international expansion and data centers have been impacting CRM’s near-term profitability.
The Zacks analyst, however, believes that salesforce has been benefiting from a robust demand environment amid the ongoing major digital transformation. The rapid adoption of its cloud-based solutions has also been driving demand. salesforce’s focus on introducing more aligned products as per customer needs is driving its top-line.
(You can
read the full research report on salesforce here >>>
)
Other noteworthy reports we are featuring today include American Express Company (
AXP
), Amgen Inc. (
AMGN
) and 3M Company (
MMM
).
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
Solid User Base, Instagram Strength Aid Meta Platforms (FB)
UnitedHealth’s (UNH) Solid Top Line Aids, High Costs Hurt
salesforce (CRM) Rides on Partnership Wins & Acquisitions
Featured Reports
AmEx (AXP) to Gain From Rising Consumer Spending & Buyouts
Per the Zacks analyst, increased consumer spending and economic recovery will boost volumes, and buyouts would trigger inorganic growth for American Express.
Amgen (AMGN) Rapidly Advancing Pipeline Development
The Zacks analyst says that Amgen is rapidly advancing its robust pipeline of early and late-stage assets. Several phase III readouts are due in 2022.
End-Market Strength Drives 3M Company (MMM), High Debt Hurts
Per the Zacks analyst, strength in 3M’s end markets, including adhesives, advanced materials, food safety, and home improvement should drive its revenues.
Strategic Pacts Aid Walgreens (WBA), Margin Pressure Stays
The Zacks analyst is optimistic about Walgreens’ recent strategic alliances with McKesson and Vitamin Angels.
Focus on Permian Basin, Cost Management Aid Occidental (OXY)
Per the Zacks analyst, Occidental’s efficient cost management and expansion of its operation Permian Basin through the acquisition of Anadarko will drive its performance over the long run.
BlackBerry (BB) Rides on Strong IoT & Cybersecurity Business
Per the Zacks analyst, Blackberry’s efforts to align its software and services business around Cyber Security and IoT market opportunities bodes well in the long haul.
World Wrestling (WWE) New Content Creation to Lift Revenues
Per the Zacks analyst World Wrestling’s focus on content creation, driving subscriber count, raising content rights fees and monetization of video content across digital and DTC platforms bodes well.
New Upgrades
Schlumberger (SLB) to Gain on Rising Oilfield Service Demand
Per the Zacks analyst, Schlumberger (SLB) is well-poised to capitalize on the rising demand for oilfield services, as increasing commodity prices encourage customers to increase drilling activities.
Decent Loan Demand, Fee Income Support Zions (ZION) Growth
Per the Zacks analyst, a solid balance sheet, decent rise in loan demand, and rise in fee income will support Zions’ financials.
Buyouts, Loan Demand, Digitization Support F.N.B Corp (FNB)
Per the Zacks analyst, strategic acquisitions, steady rise in loan demand, strong balance sheet, efforts to strengthen fee income, and digitization of operations will support F.N.B Corp’s financials.
New Downgrades
Slowdown in New Store Developments Hurts Planet Fitness (PLNT)
Per the Zacks analyst, Planet Fitness’ performance is likely to be impacted by a slowdown in new store developments and remodels as well as lower replacement equipment sales due to the pandemic.
Decreased Demand Paper Related Products Hurts Xerox (XRX)
According to the Zacks analyst, Xerox is grappling with decreased demand for paper-related systems and products. A debt-laden balance sheet is also a concern.
Elevated Freight Costs Concerns Nordstrom’s (JWN) Investors
Per the Zacks analyst, Nordstrom is witnessing higher freight costs and COVID-related labor expenses. It expects the elevated fulfillment and labor costs to result in higher SG&A expenses in Q4.
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