Tuesday, August 18, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 12 major stocks, including UnitedHealth Group Incorporated (UNH), Adobe Inc. (ADBE) and The Charles Schwab Corporation (SCHW). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all research reports from today here >>>
United Health stocks have gained +29.4% over the past year, roughly in line with the industry‘s +30.0% gain Zacks Medical – HMOs. The company’s turnover has increased and this momentum should continue in the coming years thanks to a solid market position and an attractive core business which continues to be driven by new transactions, agreements renewed and expanded service offerings.
For this year, the company expects revenues in the range of 317 to 320 billion dollars. Its strong health services sector offers diversification benefits. UNH’s government business remains well positioned for growth. A strong balance sheet allows for investments and prudent deployment of capital through share buybacks and dividends.
However, weakness in trade cases due to COVID-induced volatilities persists. In addition, rising operating costs are hurting the company’s bottom line. As such, the title warrants a cautious stance.
(You can read the full UnitedHealth research report here >>>)
Adobe shares were down -27.3% year-to-date compared to the industry’s -19.7% decline in Zacks Computer – Software on continued concerns over corporate spending trends due to monetary policy tightening in the United States and a difficult growth environment in Europe. Nevertheless, Adobe enjoys strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products help it drive revenue growth.
Additionally, rising subscription revenue and strong mobile app momentum remain major positives. Additionally, growth in emerging markets, strong demand for online video creation, strong adoption of Acrobat, and improving average revenue per user remain supportive.
The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, persistent innovation, and strong adoption of Creative Cloud and Adobe Marketing Cloud. In addition, the company’s strong balance sheet remains another bright spot.
(You can read the full Adobe research report here >>>)
Charles Schwab shares are down -0.9% over the past year compared to the -13.4% decline in Zacks Financial’s investment banking sector.
Strategic acquisitions, likely to be accretive, have strengthened Schwab’s position as a major brokerage player. The commission-free trading offer has resulted in an increase in client assets and brokerage accounts, thereby improving trading revenue.
Interest rate hikes should support margin growth. In addition, Schwab’s efficient capital deployments reflect a strong balance sheet position, through which it will increase shareholder value.
(You can read the full research report on The Charles Schwab here >>>)
Other noteworthy reports we feature today include Berkshire Hathaway Inc. (BRK.B), Lowe’s Companies, Inc. (LOW) and Analog Devices, Inc. (ADI).
Director of Research
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>