Sheraz Mian Zacks August 4, 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 UnitedHealth Group (UNH), Comcast
(CMCSA) and Exxon Mobil (XOM). 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 shares have outperformed the Zacks Medical Insurance
industry over the past year (+23.9% vs. +13.1%). The Zacks analyst believes
that the company has been benefiting from higher segmental contributions, which
helped it counter the coronavirus-led fund crunch. Its numerous acquisitions
bolstered its inorganic growth profile.
Its solid balance sheet and consistent cash flow
generation encourage investment in business. By retaining its 2020
earnings guidance, the company restores investor confidence. However, it is
witnessing a slowdown in its international operations. Commercial membership
may also see attrition due to increased joblessness.
UnitedHealth’s earnings of $7.12 per share beat
estimates by 37.45% and also soared 98% year over year. Strong earnings were
driven by an unprecedented, temporary deferral of care in the company’s
risk-based businesses.
(You can read the full research
report on UnitedHealth here >>>)
Shares of Comcast have lost
-3.8% over the past six months against the Zacks Cable Television industry’s
rise of +4.2%. The Zacks analyst believes that weakness in film business is a
headwind for Comcast. Moreover, its balance sheet remains significantly
leveraged, which is also a concern.
Comcast’s second-quarter 2020 results were
driven by solid growth in high-speed Internet, Business Services and Wireless
segments. However, the coronavirus outbreak adversely impacted advertising, the
theme park, film and Sky businesses. The fall in advertising revenues reflected
reduced advertiser spending due to postponement of sporting events and
continued ratings decline.
Further, Comcast persistently suffered
video-subscriber attrition due to cord-cutting. Moreover, its Universal Studios
Hollywood theme park remains closed. Further, Comcast expects Sky EBITDA for
the third and fourth quarters on a combined basis to decline roughly 60% year
over year.
(You can read the full research
report on Comcast here >>>)
Exxon Mobil shares have gained +57.8% over the past three months against
the Zacks Integrated International Oil industry’s rise of +64.4%. The Zacks
analyst believes that major discoveries in the Stabroek Block have enhanced
prospects for ExxonMobil's upstream businesses.
ExxonMobil’s bellwether status in the energy
space, optimal integrated capital structure that has historically produced
industry-leading returns and management’s track record of capex discipline
across the commodity price cycle make it a relatively lower-risk energy sector
play. Notably, the company estimates gross recoverable resource of more than 8
billion oil-equivalent barrels from offshore Guyana discoveries.
The integrated firm also has a strong balance
sheet with significant low debt exposure. However, ExxonMobil recently reported
weak second-quarter results owing to coronavirus-induced weak commodity prices
and reduced industry refining margins in U.S. & non-U.S. operations. Also,
the company expects scheduled maintenance activities to continue to hurt
downstream and chemical segments in the September quarter of 2020.
(You can read the full research
report on Exxon Mobil here >>>)
Other noteworthy reports we are featuring today
include Microsoft (MSFT), Accenture (ACN) and Charter Communications (CHTR).
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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>>>
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