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New Research Reports for Broadcom, TOTAL S.A. & UnitedHealth

Wednesday June 7 2017

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 Broadcom (AVGO), TOTAL S.A. (TOT) and UnitedHealth (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 >>>

Buy-rated Broadcom 's shares have handily beaten the technology sector as well as the red-hot semiconductor space in the year-to-date period, gaining +43.6%. The Zacks analyst likes the synergistic benefits gained from the merger with Avago, which will drive future profitability. Seasonal strength in broadband access and sustained cloud data center spending is expected to drive top-line growth in the rest of fiscal 2017.

The company's divestiture of some of Brocade's assets to ARRIS International will accelerate the acquisition process and also lower leverage. However, customer concentration is a significant headwind. (You can read the full research report on Broadcom here >>> ) .

Shares of TOTAL S.A. have outperformed the Zacks categorized Oil & Gas International Integrated industry over the last year (up +4.9% vs. -1.0%). The Zacks analyst likes the company's commitment to cost savings initiatives amid ongoing volatility of crude oil prices . After savings of $2.8 billion in 2016, TOTAL aims to save $3.5 billion in costs this year. Furthermore, it expects to improve its top-line production by 4% in 2017, owing to new projects that have started operation this year.

Going forward, the company will continue to benefit from upstream startups, while the strategic acquisitions and asset divestitures will further strengthen portfolio. However, fluctuating commodity prices, operations in some politically troubled regions and increasing competition could impact the company's profitability. (You can read the full research report on TOTAL S.A. here >>> ) .

UnitedHealth 's continued strong growth at Optum as well as UnitedHealthcare segments are driving growth. The buy rated stock's international business and strong capital position are other positives. Moreover, the company has reduced its exposure to the troubled public exchange business.

Though this move will shield it from losses in this business, the company's premium revenues are likely to be affected. UnitedHealth shares have underperformed the Zacks Medical-HMOs industry in the year-to-date period (up +13.8% vs. +17.3%). (You can read the full research report on UnitedHealth here >>> ) .

Other noteworthy reports we are featuring today include Nike (NKE), TE Connectivity (TEL) and Ingersoll Rand (IR).

Zacks' 2017 IPO Watch List

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One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>

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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Broadcom (AVGO) Banks on Portfolio Strength, Acquisitions

TOTAL (TOT) Expects Top-Line Production to Rise 4% in 2017

UnitedHealth (UNH) Gaining from Strong Optum, Medicare Business

Featured Reports

Puma (PBYI) Lacks Approved Product, Neratinib Key for Growth

As a development-stage company, Puma lacks an approved product in its portfolio yet. The Zacks analyst stresses that an approval for neratinib would be a huge boost given immense commercial potential.

EQT Corp (EQT) to Boost Gas Output, Lacks Diversification

The covering analyst believes that attractive resource potential and extensive drilling plans are likely to drive natural gas production. However, sole exposure to Appalachian Basin poses risks.

Credit Cards, Online Banking to Boost Capital One's (COF) Revenue

Per the Zacks analyst, Capital One's revenue should continue improving, given the strength in its credit card and online banking operations.

JetBlue (JBLU) Buoyed by Unit Revenue Growth Amid Cost Woes

Though positive on JetBlue's view on unit revenues for Q2 and Q3, the Zacks analyst expects high costs to hurt the company's near-term earnings.

BorgWarner (BWA) to Grow on New Businesses & Acquisitions

Per the covering analyst, BorgWarner is set to grow on new businesses and acquisitions. Capital deployment, restructuring, a healthy balance sheet and ample cash flows are also expected to benefit.

Hormel (HRL) Braves Jennie-O Risks on Robust Growth Drivers

The Zacks analyst thinks $190 million investment plan and higher sales for brands like Skippy will boost Hormel's near-term results. However, weaker Jennie-O Turkey Store business might limit growth.

Ingersoll (IR) Core Business Focus Mired by Margin Woes

Per the Zacks analyst, Ingersoll is focused on improving the efficiencies within its core businesses.

New Upgrades

Royal Caribbean (RCL) Rides on Bookings, Double-Double Plan

Solid booking trends are likely to lead to revenue growth at Royal Caribbean in 2017, per the Zacks analyst. Its Double-Double program is helping to control costs and improve revenue yields.

TE Connectivity (TEL) Thrives on Business Model, End Markets

Per the covering analyst, TE Connectivity's margins will benefit from steady market traction of harsh environment applications. Also, its overarching TEOA operating system is likely to control costs.

Edwards (EW) Rises on FDA for SAPIEN 3, THV Gets a Boost

The Zacks analyst is bullish about Edwards Lifesciences' win of FDA approval for SAPIEN 3 valve which defines the company's hope to gain space in high-potential THV market. Strong pipeline adds value.

New Downgrades

Spectrum (SPPI) Product Sales Declining, Hit by Generics

Spectrum's product sales have been declining over last few quarters on stiff competition. Moreover, generic pressures may impact the drug's commercial potential in future, believes the Zacks analyst.

Nike (NKE) Suffers from Soft Future Orders, Bleak Sales View

The covering analyst expresses concern over the footwear major's declining future orders. While it projects solid sales growth internationally, it remains cautious on projections for North America.

Ensign Group (ENSG) Hurt by Rising Debt, Expenses

Per the Zacks analyst, Ensign Group's solid growth potential is adversely affected by its rising expenses, heavy debt burden and stringent regulations faced by both the U.S and non-U.S operations

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

TotalFinaElf, S.A. (TOT): Free Stock Analysis Report

TE Connectivity Ltd. (TEL): Free Stock Analysis Report

Nike, Inc. (NKE): Free Stock Analysis Report

Ingersoll-Rand PLC (Ireland) (IR): Free Stock Analysis Report

Broadcom Limited (AVGO): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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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