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Top Stock Reports for Facebook, JPMorgan & UnitedHealth

Sheraz Mian

Thursday, April 9, 2020

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 Facebook (FB), JPMorgan Chase (JPM) and UnitedHealth Group (UNH). 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 >>>

Facebook’s shares have outperformed the S&P 500 over the past six months (-3.2% vs. -6.3%). The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in Asia Pacific.

The launch of Facebook View app, Facebook Pay, a simpler and faster Messenger for iOS app and more location control feature for Android users is a positive. Shares have outperformed the industry in the past year. However, Facebook expects ad-sales to be hurt by the coronavirus lockdowns despite a significant spike in traffic.

Moreover, increasing limitations in tracking user activity amid the growing privacy-related regulations and changes made in the mobile operating systems and browser platforms by Apple and Google as well as tools like the Off Facebook Activity controls are expected to affect top-line growth. Moreover, a persistent mix shift toward Stories is anticipated to weigh on ARPU.

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

Shares of JPMorgan have lost -10.5% over the past year against the Zacks Major Regional Banks industry’s fall of -23.6%. The Zacks analyst believes that decent loan demand, the acquisition of InstaMed, new branch openings and focus on credit card business will continue to aid the company's financials.

Its enhanced capital deployment plan reflects strong balance sheet position. Notably, the company has stopped its share buybacks with an aim to use the capital for lending activities amid coronavirus related slowdown. However, the Federal Reserve's accommodative monetary policy stance is expected to hurt top-line growth in the near term.

Challenges in expanding mortgage operations and the company’s significant dependence on capital markets revenues might hamper financials to some extent.

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

UnitedHealth’s shares have gained +8.9% over the past three months against the Zacks Medical Insurance industry’s fall of -0.1%. The Zacks analyst believes that the company’s revenues should continue to grow driven by its strong market position and attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.

UnitedHealth Group stands apart in the industry by virtue of healthcare services, technology and innovations offered by its unit, Optum. Its numerous acquisitions have led to inorganic growth. Its membership in the public and senior business has been growing consistently over the years and the trend is expected to continue.

Its solid balance sheet and consistent cash flow generation enables investment in business. Strong earnings guidance by the company instills investors' confidence. The company is, however, witnessing a slowdown in its international operations.

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

Other noteworthy reports we are featuring today include BHP Group (BHP), Humana (HUM) and Cognizant Technology Solutions (CTSH).

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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>>>

Today's Must Read

Expanding User Base, Instagram Strength Aids Facebook (FB)

Loan Demand, New Branches Aid JPMorgan (JPM) Amid Rate Cuts

Strong Service and Benefit Business Aids UnitedHealth (UNH)

Featured Reports

BHP Group (BHP) Bets on Operation Efficiency, Low Prices Ail

The Zacks analyst believes BHP's efforts to make operations more efficient on the back of its sound balance sheet will drive growth despite lower metal prices.

Solid Medicare Business Aids Humana (HUM), High Costs Hurt

Per the Zacks analyst, its Medicare business has been delivering solid results over the past few years, which in turn has led to significant growth.

Cognizant's (CTSH) Domain Expertise Boosts Growth Prospects

Per the Zacks analyst, Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition amid stiff competition.

Investments to Boost FirstEnergy's (FE) Operational Strength

Per the Zacks analyst, FirstEnergy's modernization drive along with long-term investments will boost its service reliability and lead to customer retention.

AIG Rides on Revenue Growth, Cost Control Measures

Per the Zacks analyst, business streamlining by selling low returning business, and focusing on high growth businesses are driving revenues.

Yum China (YUMC) Banks on Digitalization & Menu Innovation

Per the Zacks analyst, Yum China is likely to benefit from increased focused on menu innovation and digitalization.

Best Buy's (BBY) 'Building the New Blue' Program Bodes Well

Per the Zacks analyst, Best Buy's 'Building the New Blue' Program is likely to fuel growth.

New Upgrades

Robust Healthcare & Strategic Buyouts Aid FUJIFILM (FUJIY)

Per the Zacks analyst, robust healthcare business as well as accretive acquisitions and investments in gene therapy are driving FUJIFILM's growth prospects.

Flowers Foods' (FLO) Top Line Gains From Robust Price/Mix

Per the Zacks analyst, Flowers Foods' is progressing well with its efficient pricing strategy. Notably, during fourth-quarter price mix contributed 2.1% to base business revenues.

PRA Group (PRAA) Continues to Gain From Strategic Efforts

Per the Zacks analyst, buyouts of eGov Systems and Resurgent Holdings LLC's Canadian business poise the company well for growth.

New Downgrades

Legal Costs & Low Client Activities Linger for Goldman (GS)

As per the Zacks analyst, legal issues leading to higher expenses remain a concern for Goldman.

Robert Half International (RHI) Grapples With High Expenses

Per the Zacks Analyst, Robert Half's bottom line is likely to remain strained as the company continues to witness rise in staff compensation and technology-related costs.

Weak Demand & Higher Costs to Weigh on Apogee (APOG)

Per the Zacks Analyst reduced customer demand due to the coronavirus outbreak as well as lower project volumes in the Architectural Glass segment will impact Apogee's results.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Humana Inc. (HUM) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
BHP Group Limited (BHP) : Free Stock Analysis Report
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