Top Analyst Reports for UnitedHealth, SAP & Toyota Motor

Thursday, March 6, 2025The 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 UnitedHealth Group Inc. (UNH), SAP SE (SAP) and Toyota Motor Corp. (TM), as well as a micro-cap stock Better Choice Company Inc. (BTTR). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.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 >>>Ahead of Wall StreetThe daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.You can read today's AWS here >>> ECB Cuts, Jobless Claims Mixed, Trade Deficit Hits RecordToday's Featured Research ReportsUnitedHealth’s shares have outperformed the Zacks Medical - HMOs industry over the past year (+1% vs. -3.4%). The company’s top line remains poised for growth on the back of a strong market position, new deals, renewed agreements and expansion of service offerings. The company’s solid health services segment provides diversification benefits. The Government business remains well-poised for growth in the future. Adjusted net earnings per share are anticipated to be in the $29.50-$30 band in 2025. A sturdy balance sheet enables investments and prudent deployment of capital via buybacks and dividend payments. However, declining membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. We expect medical costs to jump over 14% YoY in 2025. A debt-laden balance sheet induces an increase in interest expenses.(You can read the full research report on UnitedHealth here >>>)Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+48% vs. +2.6%). The company is gaining momentum from growing cloud demand, especially rising adoption of its Rise with SAP and Grow with SAP solutions. Continued strength in the Cloud ERP Suite sales is driving its cloud revenues. Steady growth in Cloud backlog at the end of 2024 is an encouraging development. By prioritizing Business AI and Joule development, the company targets to drive top-line expansion through 2027. Also, its healthy profit and cash flow statements position it for long-term growth. SAP’s revised 2025 outlook succeeds the previous Ambition 2025 strategy. It now expects cloud and software sales in the €33.1-€33.6 billion band, up from the prior forecast of €29.83 billion at cc. However, continued softness in the Software license and support business weighs on its performance. Increasing restructuring costs dampens its margins.(You can read the full research report on SAP here >>>)Toyota Motor’s shares have outperformed the Zacks Automotive - Foreign industry over the past six months (+9.3% vs. +9%). The surge in hybrid adoption is driving the company’s sales, supported by strategic initiatives to accelerate growth and enhance profitability. Toyota Motor is working to restore production to normal levels. While prioritizing hybrids, Toyota remains committed to the BEV market, with plans to introduce solid-state batteries that promise extended range and lower production costs. Investor-friendly moves further bolster optimism. However, significant investments in human capital and expansion initiatives are expected to weigh on operating profits this fiscal year. Elevated R&D expenditures on advanced technologies and alternative fuels support long-term innovation but may constrain near-term margins. Rising debt levels also pose financial challenges. The stock warrants a cautious stance now.(You can read the full research report on Toyota Motor here >>>)Shares of Better Choice have underperformed the Zacks Retail - Miscellaneous industry over the past year (-75% vs. -8.2%). This microcap company with market capitalization of $3.29 million is dependent on Asia-Pacific, which exposes the company to regulatory, economic, and competitive risks, while liquidity concerns persist despite recent capital raises. Elevated costs for marketing and supply chain improvements remain a challenge.Nevertheless, Better Choice delivered its first profitable quarter in Q3 2024 with adjusted EBITDA of over $0.2 million and gross margins reaching 40%, driven by operational efficiencies and inventory reductions. Strong supply chain performance (97% fill rates) positions the company for sustained growth. Asia-Pacific remains a key driver, fueled by China’s doubling pet ownership trends and demand for premium brands like Halo. The SRx Health acquisition adds scale and enables entry into veterinary pharmaceuticals, enhancing diversification. Digital sales gained momentum, with double-digit subscription growth and a 20% rise in repeat purchases.(You can read the full research report on Better Choice here >>>)Other noteworthy reports we are featuring today include Deere & Co. (DE), Ecolab Inc. (ECL) and Humana Inc. (HUM).Mark VickerySenior EditorNote: 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 ReadUnitedHealth (UNH) to Ride on UnitedHealthcare & Optum UnitsSolid Demand in Cloud & AI Innovations Drive SAP's ProspectsSurge in Hybrid Adoption Aids Toyota (TM), Rising Costs AilFeatured ReportsDeere (DE) Gains from Pricing Efforts Amid Low DemandPer the Zacks analyst, low commodity prices will hurt demand for Deere's agricultural equipment in the coming quarters. However, this will be offset by its pricing actions and cost-reduction efforts. Innovation Drives Ecolab (ECL), Macro Woes PersistPer the Zacks Analyst, Ecolab's pricing actions and innovation pipeline is likely to drive growth. Yet, cost fluctuations and macro uncertainties may weigh on margins.Solid Medicare Business Drives Humana (HUM) Amid High CostsPer the Zacks Analyst, robust Medicare business, courtesy of several contract wins, has aided Humana's top line. However, escalating expenses continue to weigh on margins.Hungry for MORE strategy Aids Domino's (DPZ), High Costs AilPer the Zacks analyst, Domino's benefits from focus on the Hungry for MORE strategy, digital innovation, strategic partnerships and unit expansions. However, high costs are a concern.APA Corporation (APA) Set for Growth with Diverse ReservesThe Zacks analyst believes that APA's geographically diversified reserves and high-quality drilling inventory offer strong growth but is worried about the oil explorer's high debt burden.Expansion Strategies Aid Federated (FHI), Rising Costs AilPer the Zacks Analyst, focus on acquiring money market assets will drive Federated's revenues and asset under management. Yet, rising costs might limit the company's bottom-line growth.Boston Beer (SAM) Benefits From Pricing & Other StrategiesPer the Zacks analyst, Boston Beer has been gaining from strong price realization and procurement savings, which aid its gross margin. Strength in brands and innovation also bode well.New UpgradesInvestments, Permian Assets Aid Plains All American (PAA)Per the Zacks analyst, Plains All American Pipelines will gain from systematic investments to expand its operation and its wide presence in Permian Basin through organic projects and JVs.Solid Demand for Premium Office Spaces Aids SL Green (SGL)Per the Zacks Analyst, SL Green (SLG) is poised to benefit from tenants' healthy demand for premier office spaces. Moreover, the improving job environment and return to office mandates augur well.RingCentral (RNG) Rides on Strong Portfolio, Partner BasePer the Zacks analyst, RingCentral benefits from solid demand for its Unified Communications as a Service and contact center software-as-a-service solutions.New DowngradesAgios' (AGIO) Sole Dependence on Pyrukynd A ConcernPer the Zacks Analyst, Agios is highly dependent on its sole marketed drug, Pyrukynd, to drive sales. Other than Pyrukynd, the company's pipeline drugs are still in early-stage development.CSX Grapples With Rail Network Issues & Coal Market WeaknessPer the Zacks Analyst, rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions are major challenges for CSX. The weak coal market is another concern.Weak End-Market Demand Hurts Skyworks' (SWKS) ProspectsPer the Zacks analyst, Skyworks is suffering from sluggish demand in the mobile end-market demand. Weakness in infrastructure and automotive end markets hurts broad market growth.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Toyota Motor Corporation (TM): Free Stock Analysis Report Ecolab Inc. (ECL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report Better Choice Company Inc. (BTTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks