The Zacks Analyst Blog Highlights UnitedHealth, BlackRock, Salesforce and Cato

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 UnitedHealth Group Inc., BlackRock, Inc. and Salesforce, Inc., as well as a micro-cap stock The Cato Corp.. 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 >>>

Today’s Featured Research Reports

UnitedHealth’s shares have outperformed the Zacks Medical – HMOs industry over the past year (+37.6% vs. +28.1%). The company has shown steady revenue growth, driven by Optum and UnitedHealthcare. Optum remains a key growth driver through its pharmacy services, technology integration, and government solutions.

A strong market position and ongoing expansion initiatives, combined with rising healthcare demand, support sustained long-term growth. Commercial membership also grew for UNH, supporting margins despite headwinds from government programs. Robust cash generation supports shareholder returns and financial flexibility. In Q1 2026, it paid $2 billion in dividends.

However, rising medical costs continue to pressure margins, reflected in an elevated MCR despite recent improvement, while elevated debt and interest expenses strain financial flexibility. It is currently overvalued compared with the industry. We reiterate our Neutral rating on the shares.

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

Shares of BlackRock have declined -7.3% over the past year against the Zacks Financial – Investment Management industry’s decline of -14.5%. The company’s elevated operating expenses may hurt the bottom line. Additionally, the company’s significant reliance on overseas revenues exposes it to geopolitical tensions and diverse regulatory environments.

Nevertheless, BlackRock has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company’s strategic acquisitions, aimed at strengthening presence in lucrative alternatives and private equity assets, alongside product diversification efforts, will keep supporting the top line and assets under management (AUM) growth, going forward.

BlackRock’s continued focus on the active equity business is impressive. A solid balance sheet, alongside earnings strength, will keep capital distributions sustainable.

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

Salesforce’s shares have underperformed the Zacks Internet – Software industry over the past year (-40.8% vs. -23.4%). The company’s enterprise spending remains sensitive to macro swings, competition in CRM and AI workflows is intense, and debt-funded repurchases have lifted leverage and interest expense. The Zacks analyst view the setup as balanced.

Nevertheless, Salesforce is extending its CRM franchise by embedding Agentforce across Customer 360 and deepening the data layer through Informatica, which is supporting subscription growth and backlog. Usage indicators, including rising tokens processed and agentic work delivered, suggest customers are moving beyond early pilots.

Salesforce expects revenue growth to pick up in the second half of fiscal 2027 as Sales, Service, Slack, Agentforce and Data 360 adoption broadens. Salesforce is returning amounts of capital through an accelerated share repurchase while still generating cash flow to fund product investment.

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

Shares of Cato have outperformed the Zacks Retail – Apparel and Shoes industry over the past year (+13.6% vs. +11.1%). This microcap company with a market capitalization of $66.66 million has seen meaningful earnings recovery in its Q1 FY26 results, despite modest sales growth. Gross margin expanded on lower merchandise and freight costs, aided by tariff refunds, while disciplined SG&A management and lower depreciation drove a sharp increase in profitability.

The company’s debt-free balance sheet, $81 million in liquidity, stronger operating cash flow and ample credit availability provide flexibility to fund store investments, shareholder returns and navigate a challenging retail environment. Ongoing share repurchases further supports shareholder value.

However, inflation-driven pressure on discretionary spending limits pricing power, while a shrinking store base constrains long-term revenue growth. Elevated lease obligations and rising inventory increase earnings sensitivity if demand weakens.

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