Wednesday, April 10, 2024

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 Inc. (UNH), Pfizer Inc. (PFE) and BlackRock, Inc. (BLK). 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 underperformed the Zacks Medical - HMOs industry over the past year (-10.4% vs. -5.6%). The company’s membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. As such, the stock warrants a cautious stance.

Nevertheless, UnitedHealth Group's top line remains poised for growth on the back of a strong market position, new deals, renewed agreements and expansion of service offerings. The company’s solid health services segment provides diversification benefits.

The Government business remains well-poised for growth in the future. A sturdy balance sheet enables business investments and prudent deployment of capital via share repurchases and dividend payments.

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

Pfizer’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-32.6% vs. +22.3%). The company’s top line declined in 2023 due to a steep drop in revenues from its COVID-19 products, Comirnaty vaccine and Paxlovid oral pill, on lower demand. Concerns remain about its long-term growth drivers beyond its COVID products due to competitive pressure.

Nonetheless, Pfizer boasts a diversified portfolio of innovative drugs and vaccines. Pfizer expects better non-COVID operational revenue growth in the future quarters, driven by its in-line products like the Vyndaqel family, new launches like Abrysvo, Velsipity, Penbraya, Zavzpret and newly acquired products, including those acquired from Seagen. Estimates have declined slightly ahead of Q1 earnings. Pfizer has a positive record of earnings surprises in recent quarters.

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

Shares of BlackRock have gained +26.7% over the past six months against the Zacks Financial - Investment Management industry’s gain of +30.1%. The company’s efforts to restructure the equity business and solid assets under management (AUM) balance will keep supporting the top line.

BlackRock’s planned buyouts of 75% stake in SpiderRock and Global Infrastructure Partners will enhance revenue mix. Elevated costs (mainly owing to higher general and administration costs) are expected to hurt the bottom line.

Its dependence on overseas revenues exposes it to geopolitical tensions, different regulatory/economic environments and exchange rate fluctuation. Nevertheless, the company's robust capital distributions reflect a solid liquidity position.

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

Other noteworthy reports we are featuring today include The Hershey Co. (HSY), Edison International (EIX) and Oshkosh Corp. (OSK).

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>>>