Top Analyst Reports for UnitedHealth, Adobe & The Charles Schwab

Tuesday, August 18, 2022

The Zacks Research Daily presents the best research output of our analyst team. 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 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 shares have gained +29.4% over the past year, roughly in-line with the Zacks Medical - HMOs industry’s gain of +30.0%. The company’s top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.

For this year, the company expects revenues in the range of $317-$320 billion. Its solid health services segment provides diversification benefits. UNH's Government business remains well-poised for growth. A sturdy balance sheet enables investments and prudent capital deployment through share buybacks and dividends.

However, softness in commercial business due to COVID-induced volatilities persists. Also, the rising operating costs are hurting the company's bottom line. As such, the stock warrants a cautious stance.

(You can read the full research report on UnitedHealth here >>>)

Adobe shares have declined -27.3% over the year-to-date basis against the Zacks Computer - Software industry’s decline of -19.7% on the back of persistent worries about enterprise spending trends as a result of tightening monetary policy in the U.S. and a challenging growth environment in Europe. Nevertheless, Adobe is benefiting from strong demand for its cloud products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth.

Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.

The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud. Further, the company’s strong balance sheet remains another positive.

(You can read the full research report on Adobe here >>>)

The Charles Schwab shares have declined -0.9% over the past year against the Zacks Financial - Investment Bank industry’s decline of -13.4%. 

Strategic acquisitions, likely to be earnings accretive, have reinforced Schwab's position as a leading brokerage player. Offering commission-free trading has led to a rise in client assets and brokerage accounts, thereby improving trading revenues.

The interest rate hikes are expected to aid margin growth. Also, Schwab's efficient capital deployments reflect a solid balance sheet position, through which it will enhance shareholder value.

(You can read the full research report on The Charles Schwab here >>>)

Other noteworthy reports we are featuring today include Berkshire Hathaway Inc. (BRK.B), Lowe's Companies, Inc. (LOW), and Analog Devices, Inc. (ADI).

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 Top Line & Strong Cash Flows Drive UnitedHealth (UNH)

Adobe (ADBE) Rides on Growing Adoption of Cloud Applications

Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns

Featured Reports

Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Per the Zacks analyst, Berkshire is posed to grow on solid insurance business that drive earnings and generates maximum return on equity. However, exposure to cat loss induces earnings volatility.

Lowe's (LOW) Pro Unit Shows Strength & Posts Higher Sales
Per the Zacks analyst, pro customers have been a significant driver for Lowe's business. Pro-customer sales jumped 13% in second-quarter fiscal 2022, recording ninth straight quarter of a double-digit

Battery Management System Solutions Aid Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is benefiting from a strong momentum in the electric vehicle space on the back of its robust Battery Management System solutions.

Biktarvy Fuels Gilead (GILD) Amid Generic Competition
Per the Zacks analyst, strong performance from flagship HIV therapy Biktarvy and contribution from the oncology franchise boost Gilead as some other drugs face generic competition and slowdown.

Organic Growth Aids AmerisourceBergen (ABC) Amid Competition
Per the Zacks analyst, AmerisourceBergen should benefit from continued solid organic revenue growth, World Courier unit and Specialty distribution business cutthroat competition in the Medtech space

Vehicle Remarketing Demand Aids Copart (CPRT), Costs Hurt
Robust demand in vehicle remarketing fuels Copart's profits and revenues. But per the Zacks analyst, elevated labor and storage costs are likely to dent margins in the near-term.

Royal Caribbean (RCL) Banks on Solid Booking Amid High Cost
Per the Zacks analyst, increasing demand for cruises and solid booking trends are likely to drive Royal Caribbean's top-line. However, increased cost of operations remains a concern.

New Upgrades

Technology, DARTs, High Rates Aid Interactive Brokers (IBKR)
Per the Zacks analyst, Interactive Brokers' focus on developing of proprietary software have resulted in higher revenues and daily average revenue trades (DARTs). Rising rates will aid the top line.

Ulta Beauty (ULTA) Gains on Strength in Skincare Category
Per the Zacks analyst, Ulta Beauty is gaining on solid skincare sales, thanks to consumers' rising interest toward self-care. In first-quarter fiscal 2022, skincare comps saw double-digit growth.

Clean Harbors (CLH) Benefits From HydroChemPSC Acquisition
Per the Zacks analyst, acquisition of HydroChemPSC has generated multiple cross-selling opportunities for Clean Harbors, increasing its size and scale of operations.

New Downgrades

787 Program Woe & Weak Solvency Hit Spirit Aerosystems (SPR)
Per the Zacks analyst, the constant forward losses incurred due to reduced production rates for Boeing's 787 and weak solvency may weigh on Spirit Aerosystems' operational results in the coming days.

SM Energy (SM) to Incur Potential Losses Through Hedging
Despite a strong hedging position, SM Energy is likely to incur massive hedging losses due to high commodity prices. This can affect its future cash flow generation, concerning the Zacks analyst.

IBM Plagued by High Debt levels and Integration Risks
Per the Zacks analyst, higher debt levels amid extensive restructuring are hurting IBM's revenues, with high integration risk from acquisitions further compounding problems.

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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
 
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
 
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
 
Adobe Inc. (ADBE) : Free Stock Analysis Report
 
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