Monday, July 12, 2021

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 Apple (AAPL), UnitedHealth Group (UNH), and Bank of America (BAC). 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 >>>

Shares of Apple have underperformed the S&P 500 in the year-to-date period (+9.5% vs. +17.9%), likely a reflection of the sentiment that Apple and other Tech players that benefited from the pandemic will be less advantangeously positioned in the post-Covid world.

The Zacks analyst sees the company continuing to benefit from momentum in the Services segment, driven by App Store, Cloud Services, Music, advertising and AppleCare.

Its near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, healthcare-focused Apple Watch, and an expanding App Store ecosystem. However, Apple refrained from providing any guidance due to the current uncertainties. Increasing scrutiny and legal woes over App Store are other headwinds.

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

UnitedHealth shares have gained +17.7% over the last six months against the Zacks Medical Insurance industry’s gain of +15.5%. The Zacks analyst believes that numerous acquisitions have supplemented the company’s organic growth as well as helped it diversify in different verticals. The company is scheduled to report June-quarter results on Thursday, July 15th. 

UnitedHealth remains well poised to gain from its government business. A sturdy balance sheet and consistent cash flow generation are other positives, enabling the company to engage in share buybacks and dividend payments. However, it is witnessing a slowdown in international and commercial business.

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

Shares of Bank of America have gained +2.9% in the past three months against the Zacks Major Regional Banks industry’s gain of +1.9%. The Zacks analyst believes that opening of new branches, enhanced digital offerings, strategic acquisitions as well as efforts to manage expenses will continue to support profitability in the quarters ahead.

A strong balance sheet and liquidity position are expected to continue aiding the company’s financials. However, lower interest rates and the Federal Reserve signaling no near-term chance of change in the same are expected to keep hurting the bank’s margins and interest income. Muted lending scenario remains another major concern.

(You can read the full research report on Bank of America here >>>)

Other noteworthy reports we are featuring today include T-Mobile US (TMUS), Morgan Stanley (MS) and Applied Materials (AMAT).

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>>>