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Top Analyst Reports for Facebook, UnitedHealth & HSBC

Mark Vickery

Friday, October 18, 2019

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), UnitedHealth (UNH) and HSBCHoldings (HSBC). 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 year to date (45.2% vs. 19.6%). The Zacks analyst thinks that solid mobile ad revenues, driven by impressive growth in Instagram Stories and Feed, and Facebook News Feed, are expected to boost the top line.

Facebook’s initiatives to improve privacy, transparency and authenticity of ads, and remove fake accounts are likely to boost user trust and engagement. Further, partnerships with ESPN and Fox for sports related streaming on Facebook Watch are a positive. The acquisition of CTRL-Lab will drive growth in the long haul.

However, the company’s rising regulatory headwinds, including the antitrust investigation and the EU’s investigation of Libra, are a concern. The unfriendly regulatory environment is expected to delay Libra’s launch, which Facebook has targeted for the first half of 2020.

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

Shares of UnitedHealth have gained 9.9% in the past six months against the Zacks Medical Insurance industry’s rise of 8.6%. The Zacks analyst believes that higher revenues, strength in both segments — UnitedHealthcare and Optum — plus membership growth led to this outperformance.

UnitedHealth Group stands apart in the industry by virtue of healthcare services, technology and innovations offered by its unit, Optum. Numerous acquisitions made by the company have led to inorganic growth. Its solid balance sheet and consistent cash flow generation enables investment in business.

Also, capital management by dividend payout and share buyback is another positive. However, slowdown of growth in international operations and underperformance in Medicaid business are some concerns. 

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

HSBC’s shares have lost 6% over the past three months against the Zacks Foreign Banks industry’s decline of 3.6%. The Zacks analyst believes that while the company’s initiatives to improve market share in the U.K. and China are likely to lead to an increase in expenses and hurt bottom-line growth, these efforts will support financials over the long term.

Also, initiatives to strengthen digital capabilities globally, improve operating efficiency and open 50 new retail banking branches in the United States will go a long way in supporting profits. Its steady capital deployments are impressive, reflecting strong balance sheet position and will enhance shareholder value.

Nevertheless, disappointing economic growth in Europe and weak loan demand are likely to hurt revenue growth to some extent. Additionally, uncertainty related to the implication of Brexit on its financials remains a major near-term concern.

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

Other noteworthy reports we are featuring today include JPMorgan Chase (JPM), PetroChina (PTR) and Netflix (NFLX).

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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

Mobile Ad Growth, Instagram Strength Benefits Facebook (FB)

Strong Service and Benefit Business Aids UnitedHealth (UNH)

Expansion Efforts Aid HSBC Holdings (HSBC), High Costs a Woe

Featured Reports

Branch Expansion, Loans Aid JPMorgan (JPM), Fee Income a Woe

The Zacks analyst believes branch expansion strategy, acquisition of InstaMed and decent loan growth will aid JPMorgan's revenues.

Robust Content to Aid Netflix (NFLX) Amid Stiff Competition

Per the Zacks analyst, Netflix's robust content portfolio is expected to aid subscriber addition despite increasing competition in the streaming space.

Robust Adoption of Cloud Solutions Aids IBM Amid High Debt

Per the Zacks analyst, IBM's blockchain, cloud and ML capabilities, among others poises its offerings well to gain robust adoption.

AbbVie's (ABBV) Pipeline Solid, Key Launches in Near Term

The Zacks analyst believes that AbbVie has an impressive late-stage pipeline comprising several products with multibillion-dollar potential.

Tesla (TSLA) Rides on Model 3 Sales Amid Tariff Concerns

While rising Model 3 deliveries are likely to aid Tesla's top line, the Zacks analyst is concerned about the U.S.-Sino trade tiff as the firm commands a sizable market share in China.

Passenger Revenues Aid United Airlines (UAL), Debts Ail

The Zacks analyst likes the uptick in passenger revenues at United Airlines. Low fuel costs are an added positive.

Motorola (MSI) Poised to Benefit from Holistic Growth Model

Per the Zacks analyst, Motorola is likely to gain from a holistic growth model, ably supported by an attractive portfolio of mission-critical communication products and services worldwide.

New Upgrades

Cost-Saving Initiatives to Benefit NRG Energy's (NRG) Growth

Per the Zacks analyst, NRG Energy is poised to benefit from its cost-saving initiatives, acquisitions as well as share buyback strategies that will support its long-term growth objectives.

Universal Display (OLED) Rides on Product Rollouts & Buyouts

Per the Zacks analyst, OLED-based product launches by premium handset makers like Apple, Oppo and Vivo, are aiding growth. Further, Adesis buyout is bolstering contract research services revenues.

Buyouts, Omni-Channel to Fuel Capri Holdings' (CPRI) Sales

Per the Zacks analyst, deployment of resources to make accretive buyouts, upgrade distribution infrastructure and e-commerce platform, and expand product offerings bode well for Capri Holdings' sales.

New Downgrades

Weak Refining & Gas Import Losses Weigh on PetroChina (PTR)

The Zacks analyst is worried over PetroChina's weak refining prospects. Losses on the domestic resale of imported natural gas are also a concern.

Video Subscriber Loss Hurts Liberty Global's (LBTYA) Prospects

Per the Zacks analyst, Liberty Global is suffering from continued customer losses in the video segment, primarily due to stiff competition in the market.

B&G Foods' (BGS) Top Line to be Hurt by Pirate Brands Sale

Per the Zacks analyst, B&G Foods is being hurt by the divestiture of Pirate Brands. This divestiture, which weighed on second-quarter top line, is expected to remain a headwind for 2019.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
PetroChina Company Limited (PTR) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
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