Top Research Reports for UnitedHealth Group, Salesforce & Linde
Wednesday, March 29, 2023
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 Inc. (UNH), Salesforce, Inc. (CRM) and Linde plc (LIN). 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 UnitedHealth Group have underperformed the Zacks Medical - HMOs industry over the past year (-10.0% vs. -8.6%). The company’s membership in its global business continues to decline. Rising operating costs are hurting margins. As such, the stock warrants a cautious stance.
Nevertheless, UnitedHealth Group’s top line remains well-poised for growth on the back of a strong market position, new deals, renewed agreements, and expansion of service offerings. Its solid health services segment provides diversification benefits.
UNH's Government business remains well-poised for growth. A sturdy balance sheet enables business investments.
(You can read the full research report on United Health Group here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the past six months (+35.6% vs. +22.4%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.
Its sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. The acquisition of Slack would position the company to be a leader in enterprise team collaboration solution space and better compete with Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the past year (+7.5% vs. -8.8%). With a wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, the cost of sales continues to increase, hurting the firm’s bottom line. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Other noteworthy reports we are featuring today include Palo Alto Networks, Inc. (PANW), IDEXX Laboratories, Inc. (IDXX) and Telefónica, S.A. (TEF).
Mark Vickery
Senior Editor
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)
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Linde (LIN) to Benefit From Its Gas Sale Project of $2B
Featured Reports
Palo Alto (PANW) Rides on Shift to Subscription Services
Per the Zacks analyst, Palo Alto Networks' focus on selling more subscription-based services is helping the company generate stable revenues and higher margins.
IDEXX (IDXX) Banks on Strong Global Sales Amid Forex Woes
The Zacks analyst is impressed with IDEXX's international revenues growth primarily aided by a gain in CAG and Water businesses. Yet, foreign exchange woes remain a concern.
Telefonica (TEF) To Benefit From Strong Product Portfolio
Per the Zacks analyst, Telefonica's performance benefitted from strong revenue growth across all business segments. However, supply chain woes and stiff competition remain concerns.
Buyouts & Loan Growth Aid Citizens Financial (CFG), Cost Up
Diversifying its revenue streams through acquisitions, stable loan growth and revenue efficiency initiatives support Citizens Financial. Yet, rising expenses will affect the bottom-line expansion.
Rosy Air-Travel Demand Aids Southwest (LUV), High Costs Hurt
Improved air-travel demand, particularly on the domestic front is driving Southwest's top line. Escalated fuel costs are, however, limiting bottom-line growth.
Karuna's (KRTX) Dependence on KarXT for Growth A Woe
Though Karuna's progress with its lead candidate KarTX in schizophrenia is encouraging, the Zacks Analyst is concerned for the company's dependence on a single product for growth.
Acquisitions, Backlog to Aid John Bean (JBT), Costs Ail
The Zacks analyst believes that John Bean Technologies will benefit from its solid backlog levels, strategic acquisitions and its Elevate 2.0 strategy despite the ongoing inflationary cost scenario.
New Upgrades
Everest Re (RE) to Grow on Better Pricing, Solid Retention
Per the Zacks analyst, Everest Reis poised to grow on disciplined cycle management, new business opportunities, continued double-digit rate increases and strong renewal retention on existing business.
Strength in Namesake Brand to Aid Crocs (CROX) Top Line
Per the Zacks analyst, Crocs' top line has been gaining from strength in the Crocs brand. The company remains optimistic about the demand for the Crocs brand, targeting revenues of $5 billion by 2026.
Growth in Firdapse Fuels Catalyst's (CPRX) Growth
Per the Zacks Analyst, Catalyst Is set to outperform the industry owing to the growing Firdapse sales. Fycompa's launch will generate incremental revenue for the company, further boosting its topline.
New Downgrades
High Debt Load & Lower Production Hurt Southwestern (SWN)
The Zacks analyst is concerned since Southwestern has significant exposure to debt capital. Also, declining gas equivalent production is hurting the firm.
Pilgrim's Pride (PPC) Declining Margin is a Concern.
Per the Zacks analysts, Pilgrim's Pride (PPC) has been witnessing deteriorating margins. Strong inflationary headwinds and high market volatility are weighing on the same.
Vulcan (VMC) Ail From Low Aggregates Shipment & Energy Woes
Per the Zacks analyst, low construction activity across many markets served, challenging weather conditions, continued energy cost headwinds and inflationary pressure hurt Vulcan.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Telefonica SA (TEF) : Free Stock Analysis Report
IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
