Top Stock Reports for UnitedHealth, Johnson & Johnson, & Chevron

Monday, September 26, 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 Chevron Corporation (CVX). 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 shares have outperformed the Zacks Medical - HMOs industry (+25.3% vs. +24.6%) and the S&P 500 (+25.3% vs. -18.1%) index over the past year . 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 and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.

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.

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

Johnson & Johnson’s shares have advanced +2.2% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +6.0%. The Zacks analyst believes that J&J’s diversification makes it relatively resilient amid macroeconomic turmoil. Its Pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara, and contribution from newer drugs, Erleada and Tremfya. Sales in the MedTech unit are recovering in 2022 and the company is focusing on growing this business through new products. J&J is making rapid progress with its pipeline and line extensions.

However, sales in the Consumer and MedTech units are being hurt by inflationary pressure. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.

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

Chevron shares have outperformed the Zacks Oil and Gas - Integrated – International industry over the past year (+40.6% vs. +25.6%). The Zacks analyst believes that the company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up. America’s No. 2 energy company’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin.

However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of oil and gas produced.

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

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), The Home Depot, Inc. (HD), and AT&T Inc. (T).

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

Solid Top Line & Strong Cash Flows Drive UnitedHealth (UNH)

J&J (JNJ) Boasts a Solid Pipeline

Chevron (CVX) to Gain from Massive Permian Acreage

Featured Reports

Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Per the Zacks analyst, NextEra's planned capital investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Rosy Air-Travel Demand Aids Southwest (LUV), High Costs Ail
Improved air-travel demand, mainly for leisure, is driving the company's top line. The Zacks analyst is, however, worried about escalated fuel costs that are limiting bottom-line growth.

Higher Demand, Cost Reductions to Aid Mosaic (MOS)
The Zacks analyst believes that Mosaic is well placed to gain from higher demand for phosphate and potash and its efforts to drive down costs amid headwinds from higher raw material costs.

Focus on Pro Customers to Aid Home Depot's (HD) Top Line
Per the Zacks analyst, Home Depot's Pro segment has been a key driver of sales growth for several quarters. It is on track with investments to build a Pro ecosystem. Pro sales outpaced DIY sales in Q2

A Slew of Strategic Deals Aid BD (BDX) Amid Stiff Competition
The Zacks analyst is upbeat about BD's inking of a slew of strategic deals over the past few months despite its operation in a highly competitive market.

AT&T (T) Poised to Benefit from Steady 5G, Fiber Investments
Per the Zacks analyst, AT&T is likely to benefit from a healthy growth in its wireless business with a lower churn rate and continued investments in key areas of 5G and fiber network expansion.

Russia, Currency Headwinds to Hurt Autodesk's (ADSK) Sales
Per the Zacks analyst, the halt of business in Russia along with unfavorable currency exchange rates are anticipated to negatively impact Autodesk's revenues in the near-term.

New Upgrades

Range Resources (RRC) Banks On Marcellus Shale Play Assets
The Zacks analyst is impressed by Range Resources' 3,000 undrilled wells in the Marcellus formation of the Appalachian Basin. The wells are likely to provide production for several decades.

Diversification of Investment Portfolio Aids Annaly (NLY)
Per the Zacks analyst, Annaly's effort to diversify its investment portfolio will offer stable returns in the days ahead. Robust liquidity and funding profile will aid its asset generation strategy.

Electrical & Electronic Solutions Strength Aids WESCO (WCC)
Per the Zacks analyst, strong momentum across construction, original equipment manufacturer, and industrial businesses is benefiting WESCO's Electrical & Electronic Solutions unit.

New Downgrades

Higher Rates & Lower Orders Play Spoilsport For KB Home (KBH)
Per the Zacks analyst, KB Home have been grappling with softer demand environment due to higher mortgage rates, rising home prices, municipal delays, labor shortages and supply chain disruptions.

Altice (ATUS) Plagued by Margin Woes, Competitive Pressures
Per the Zacks analyst, Altice is likely to plagued by rising programming costs per customer due to high contractual rates, stiff competition from low-priced alternatives and high foreign currency risk

Higher Inflation and Development Costs Hurt Mohawk (MHK)
Per the Zacks analyst, Mohawk has been grappling with rising inflation, primarily in material, energy and transportation. Increasing product development costs and labor shortages are added woes.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
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