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>>>