Wednesday, March 9, 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 UnitedHealth Group Incorporated (UNH), Accenture plc (ACN) and Union Pacific Corporation (UNP). 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 have outperformed the Zacks Medical - HMOs industry over the past year (+34.5% vs. +30.6%). The company’s top line has been growing, and the Zacks analyst believes that 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 2022, the company expects revenues in the range of $317-$320 billion. Its solid health services segment provides diversification benefits. The firm's government business remains well-poised for growth. A sturdy balance sheet and solid cash generation abilities enable investments and prudent capital deployment through share buybacks and dividends.
 

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

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

Shares of Accenture have outperformed the S&P 500 index over the past year (+18.6% vs. +7.6%), with the stock benefiting partly due to earnings and revenue beat in the past four quarters. The Zacks analyst believes that the company has been steadily gaining traction in its outsourcing and consulting businesses. The company has been strategically enhancing its cloud and digital marketing suite through buyouts and partnerships.
 

The company’s strong operating cash flow has helped it reward its shareholders in the form of dividend payments and share repurchases, and pursue opportunities in areas that show true potential. On the flip side, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern. Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continues to remain a concern.
 

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

Shares of Union Pacific have outperformed the Zacks Transportation - Rail industry over the past year (+19.7% vs. +8.7%). The Zacks analyst believes that Union Pacific's efforts to reward its shareholders through dividends and buybacks even in the current uncertain scenario is indeed commendable. The company hiked dividend twice in 2021. Union Pacific is also active on the buyback front. Management anticipates share repurchases in 2022 to be in line with the 2021 levels of $7.3 billion. The company's strong free cash flow generating ability supports its shareholder-friendly activities.
 

However, escalation in fuel costs (up 56% in 2021) as oil prices move north induced a 7% rise in operating expenses. High debt/EBITDA ratio and tepid automotive demand are further concerns. Moreover, the company's operations in the near term are likely to be impacted by the omicron-induced volatility.
 

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

Other noteworthy reports we are featuring today include The Kroger Co. (KR), The Boeing Company (BA) and Prologis, Inc. (PLD).
 

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>>>