The Zacks Analyst Blog Highlights: Alphabet, Visa, PetroChina, UnitedHealth and Honeywell
For Immediate Release
Chicago, IL – September 25, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Alphabet GOOGL, Visa V, PetroChina Company PTR, UnitedHealth Group UNH and Honeywell International HON.
Here are highlights from Thursday’s Analyst Blog:
Top Research Reports for Alphabet, Visa and PetroChina
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 Alphabet, Visa and PetroChina Company. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Alphabet shares have underperformed the Zacks Internet Services industry in the year-to-date period (+5.3% vs. +11.5%), reflecting the perceived exposure of the company's ad business to cyclical forces. The Zacks analyst believes that Alphabet's strengthening cloud unit is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results, which is a major positive. Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.
Also, its deepening focus on the wearables category remains a tailwind. However, the company’s growing litigation issues and increasing expenses might hurt profitability. Further, the company faces persistent pressure from advertisers to tighten controls on YouTube video service. This remains a concern.
Shares of Visa have gained +11.5% over the past year against the Zacks Financial Transaction Services industry’s rise of +5.8%. The Zacks analyst believes that numerous acquisitions and alliances together with technology upgrades have paved the way for long-term growth for Visa.
The acquisition of Visa Europe is a growth strategy as well. Its strong balance sheet enables it to make acquisitions and fund capital expenditure. Its strong cash position enables effective capital deployment measures for its shareholders.
Meanwhile, Visa’s high operating expenses owing to personnel-related costs have put operating margins under pressure. Also, ramped-up client initiatives might dent the top line. It is likely to see a slowdown in cross-border business due to the coronavirus outbreak.
PetroChina shares have lost -8.7% over the past six months against the Zacks International Integrated Oil industry’s fall of -12.5%. The Zacks analyst believes that the stock stands to gain from higher energy production and lower lifting costs.
PetroChina's E&P unit posted a 7% increase in production in the first six months of 2020, while oil and gas lifting costs were down 14% from what it averaged in the first half of last year. However, the historic oil price crash has hit PetroChina hard.
Further, in a sign of weakness in the company’s downstream business, earnings plunged due to depressed domestic demands, lower refined products sales and a drop in price.
Other noteworthy reports we are featuring today include UnitedHealth Group and Honeywell International.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
PetroChina Company Limited (PTR): Free Stock Analysis Report
Honeywell International Inc. (HON): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
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