Wednesday, February 22 2017
Today’s Research Daily features new research reports on 16 major stocks, including UnitedHealth (UNH), General Mills (GIS) and Public Storage (PSA).
Buy-rated UnitedHealth shares have gained +32.5% over the last year, underperforming the Zacks Medical Health Maintenance Organization industry, which has gained +23.2% over the same period. UnitedHealth’s better-than-expected earnings were driven by strong results from both UnitedHealth Care and Optum segments.
The company also reaffirmed the previously issued guidance for 2017. The analyst likes that fact that the company is consistently gaining from the Medicaid and Medicare businesses. Continued growth at Optum is also creating a diversified revenue source. Also, UnitedHealth should benefit from its capital strength and niche market position. But losses on public exchange business and higher operating costs are some of the headwinds. (You can read the full research report onUnitedHealthhere . )
General Mills shares lagged the market last year as market participants shifted away from consumer staples and other high dividend stocks . Weakness in the company’s U.S. Retail segment has also been an issue, though the Zacks analyst points to the company’s robust restructuring savings, which are making up for the slower revenue growth. Though consumer-focused innovation and marketing efforts will eventually help improve businesses in like cereals and snacks, a material improvement will likely take time. (You can read the full research report on General Mills here. )
Public Storage shares have outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past three months, gaining +11.2% vs +6.1%. The analyst stresses that the company is a recognized and established name in the self-storage industry in the U.S. and its acquisition and expansion efforts are encouraging.
However, softness in demand and rising supply in some of the markets are key concerns. Estimates for full year 2016 have remained unchanged over the past 60 days. Public Storage is slated to report fourth-quarter 2016 results on Feb 22. (You can read the full research report on Public Storage here. )
Other noteworthy reports we are featuring today include Deere (DE), Williams (WMB) and Campbell Soup (CPB).
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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 >>>
Today’s Must Read
UnitedHealth’s (UNH) Optum to Drive Long term Growth
General Mills’ (GIS) Sales Weak, Restructuring Bodes Well
Public Storage’s (PSA) Growth Reassuring, Soft Demand a Woe
Featured Reports
Life Point Health (LPNT) Q4 Earnings Beat on Higher Revenues
The Zacks analyst views LifePoint’s strong earnings favorably , and expects growth from acquisitions of hospitals in faster growing areas of the U.S.
Reliance Steel (RS) Tops in Q4, Industry Headwinds Remain
While the company should gain from acquisitions and strength in auto & aerospace, soft demand in energy and construction along with a still weak steel industry pose headwinds, per the Zacks analyst.
Entergy (ETR) Tops Q4 Earnings, Gains on Hefty Investment
The covering analyst thinks Entergy’s hefty investment plans for the 2017-2019 time frame buoys optimism in favor of substantial future growth for the company.
Ameren Corp.’s (AEE) Q4 Earnings & Revenues Increases Y/Y
The Zacks analyst thinks Ameren’s bottom-line improvement was mainly driven by increased 2016 electric transmission and distribution infrastructure investments and higher summer 2016 electric sales.
Acorda (ACOR) Reports Q4 Loss ; Ampyra to Support 2017 Sales
Acorda’s key product Ampyra has been doing well and is expected to continue doing so, believes the Zacks analyst.
Campbell Soup’s (CPB) Strategic Efforts Impress, Sales Drag
The covering analyst thinks Campbell’s growth efforts, robust cost savings and impressive bottom-line performance bode well.
Vornado’s (VNO) Focus on Value Creation Paying Off
The covering analyst thinks Vornado’s focus on premium quality assets in top markets, so as to enhance value, is aiding its growth momentum.
New Upgrades
Deere (DE) Tops Q4 Earnings, Brazil to Support Growth
The Zacks analyst expects Deere to benefit from a durable business model, execution of operating plans, disciplined cost management, a broad product portfolio and an improved Brazilian economy.
Wendy’s (WEN) Long-Term Goals on Track; 2017 Looks Promising
The end of Wendy’s system optimization initiative places it well for accelerated cash flow generation hereon. Per the Zacks Analyst, initiatives like image activation and global expansion bode well.
Lithia Motors (LAD) Q4 Earnings Lag Estimates, Rise Y/Y
The Zacks analyst expects Lithia to gain from the expansion of its business through acquisitions and store openings. The company enhances shareholder value through aggressive share repurchases.
New Downgrades
Low Gas Prices, High Leverage Weighs on Williams (WMB)
The covering analyst has turned bearish on Williams Companies considering its high leverage and extensive natural gas exposure amid low prices.
Expeditors’ (EXPD) Q4 Earnings Flat Y/Y; Costs Rise
Though pleased with the company’s outperformance, the Zacks analyst is concerned about the fall in operating income due to an increase in expenses.
TiVo’s (TIVO) Q4 Earnings Fall Y/Y, Revenue Outlook Soft
Although the Rovi-TiVo merger will have long-term benefits, the combined company’s dismal Q4 bottom-line results and soft FY17 revenue view makes the Zacks analyst more concerned about the near term.
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Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
Public Storage (PSA): Free Stock Analysis Report
General Mills, Inc. (GIS): Free Stock Analysis Report
Deere & Company (DE): Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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