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The Zacks Analyst Blog UnitedHealth, SAP, Toyota and Better Choice

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Chicago, IL – March 7, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include UnitedHealth Group Inc. (UNH - Free Report) , SAP SE (SAP - Free Report) , Toyota Motor Corp. (TM - Free Report) and Better Choice Company Inc. (BTTR - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Top Analyst Reports for UnitedHealth, SAP & Toyota

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., SAP SE and Toyota Motor Corp., as well as a micro-cap stock Better Choice Company Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

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You can read today's AWS here >>> ECB Cuts, Jobless Claims Mixed, Trade Deficit Hits Record

Today's Featured Research Reports

UnitedHealth’s shares have outperformed the Zacks Medical - HMOs industry over the past year (+1% vs. -3.4%). The company’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. Adjusted net earnings per share are anticipated to be in the $29.50-$30 band in 2025. A sturdy balance sheet enables investments and prudent deployment of capital via buybacks and dividend payments.

However, declining membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. We expect medical costs to jump over 14% YoY in 2025. A debt-laden balance sheet induces an increase in interest expenses.

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

Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+48% vs. +2.6%). The company is gaining momentum from growing cloud demand, especially rising adoption of its Rise with SAP and Grow with SAP solutions. Continued strength in the Cloud ERP Suite sales is driving its cloud revenues.

Steady growth in Cloud backlog at the end of 2024 is an encouraging development. By prioritizing Business AI and Joule development, the company targets to drive top-line expansion through 2027. Also, its healthy profit and cash flow statements position it for long-term growth.

SAP’s revised 2025 outlook succeeds the previous Ambition 2025 strategy. It now expects cloud and software sales in the €33.1-€33.6 billion band, up from the prior forecast of €29.83 billion at cc. However, continued softness in the Software license and support business weighs on its performance. Increasing restructuring costs dampens its margins.

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

Toyota Motor’s shares have outperformed the Zacks Automotive - Foreign industry over the past six months (+9.3% vs. +9%). The surge in hybrid adoption is driving the company’s sales, supported by strategic initiatives to accelerate growth and enhance profitability.

Toyota Motor is working to restore production to normal levels. While prioritizing hybrids, Toyota remains committed to the BEV market, with plans to introduce solid-state batteries that promise extended range and lower production costs. Investor-friendly moves further bolster optimism.

However, significant investments in human capital and expansion initiatives are expected to weigh on operating profits this fiscal year. Elevated R&D expenditures on advanced technologies and alternative fuels support long-term innovation but may constrain near-term margins. Rising debt levels also pose financial challenges. The stock warrants a cautious stance now.

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

Shares of Better Choice have underperformed the Zacks Retail - Miscellaneous industry over the past year (-75% vs. -8.2%). This microcap company with market capitalization of $3.29 million is dependent on Asia-Pacific, which exposes the company to regulatory, economic, and competitive risks, while liquidity concerns persist despite recent capital raises. Elevated costs for marketing and supply chain improvements remain a challenge.

Nevertheless, Better Choice delivered its first profitable quarter in Q3 2024 with adjusted EBITDA of over $0.2 million and gross margins reaching 40%, driven by operational efficiencies and inventory reductions. Strong supply chain performance (97% fill rates) positions the company for sustained growth.

Asia-Pacific remains a key driver, fueled by China’s doubling pet ownership trends and demand for premium brands like Halo. The SRx Health acquisition adds scale and enables entry into veterinary pharmaceuticals, enhancing diversification. Digital sales gained momentum, with double-digit subscription growth and a 20% rise in repeat purchases.

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

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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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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