Thursday, October 27, 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), Johnson & Johnson (JNJ) and Walmart Inc. (WMT). 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 +19.3% over the past year against the Zacks Medical - HMOs industry’s gain of +19.1%. The Zacks analyst believes that 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, new deals, renewed agreements and expansion of service offerings.
 

UNH's solid health services segment provides diversification benefits. Its Government business remains well-poised for growth. A sturdy balance sheet enables investments. However, softness in commercial business due to COVID-induced volatilities persists. Rising operating costs are hurting margins.
 

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

Shares of Johnson & Johnson have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+5.8% vs. +9.7%). The Zacks analyst believes that macroeconomic headwinds like inflationary pressure, rising input costs and negative currency impact are hurting the company’s margins. Headwinds like generic competition and pricing pressure continue. Stelara’s upcoming loss of exclusivity in 2023 is a concern. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.
 

However, the company’s Pharma unit is performing at above-market levels, supported by blockbuster drugs, Darzalex and Stelara, and contribution from newer drugs, Erleada and Tremfya. Sales in the MedTech unit are recovering and J&J is focusing on growing this business through new products. J&J is making rapid progress with its pipeline and line extensions.
 

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

Shares of Walmart have outperformed the Zacks Retail - Supermarkets industry over the past three months (+8.8% vs. +8.0%). The Zacks analyst believes that the company has been benefiting from its robust omnichannel operations due to its efforts to enhance both store and online experience. Walmart has been particularly gaining from its efforts to boost delivery services through acquisitions and partnerships.
 

However, its consolidated operating income and earnings per share view suggest a decline from the year-ago period figures. The company is encountering cost pressure associated with fuel prices, supply chain and excess inventory.
 

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

Other noteworthy reports we are featuring today include Amazon.com, Inc. (AMZN), The Coca-Cola Company (KO), and NVIDIA Corporation (NVDA).
 

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>>>