Top Analyst Reports for Johnson & Johnson, Apple & Goldman Sachs
Monday, May 20, 2019
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 Johnson & Johnson (JNJ), Apple Inc. (AAPL) and The Goldman Sachs Group, Inc. (GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry so far this year (+7.4% vs. -1.1%). J&J’s sales and earnings growth is expected to accelerate in the long run, supported by contribution from new drugs like Tremfya and successful label expansion of cancer drugs like Imbruvica and Darzalex and immunology drug, Stelara.
J&J is also making rapid progress with its pipeline and line extensions. It has already gained FDA approval for two new drugs in 2019, Balversa and Spravato. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. However, headwinds like biosimilar/generic competition and pricing pressure remain.
Shares of Apple have outperformed the broader S&P 500 index on a year-to-date basis (+19.8% vs. +13.4%). Apple’s services segment, in particular, is expected to grow strongly on solid App Store sales and increasing adoption of Apple Music and Apple Pay.
But there are significant headwinds for Apple. Weak iPhone demand, particularly in China and emerging economies, is a headwind. Further, the company continues to lose share in the smartphone market due to stiff competition from Chinese handset makers. Moreover, the ongoing U.S.-China trade war doesn’t bode well for the company.
Goldman Sachs' shares have outperformed the Zacks Financial - Investment Bank industry so far this year, gaining +18.1% vs +7.8%. Goldman’s first-quarter 2019 results reflected solid financial advisory revenues and lower expenses, partly offset by disappointing performance of Institutional Client Services unit and lower underwriting business. Notably, Goldman has been embroiled in the scandal related to the multibillion-dollar 1Malaysia Development Bhd (1MDB), which is a major concern.
Nevertheless, Goldman’s well-diversified business and focus to capitalize on growth opportunities through strategic moves, along with cost-control efforts, will continue to strengthen the overall business.
Other noteworthy reports we are featuring today include Accenture plc (ACN), IBM Corp. (IBM) and Netflix, Inc. (NFLX).
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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>>>
Today's Must Read
Per the Zacks analyst, rising visitor arrivals boost Hawaii's tourism that bolster Hawaiian Electric's growth.
The Zacks analyst believes that the acquisition of creative agency Droga5 will help Accenture expand its advertising creative business.
Per the Zacks analyst, Visa's numerous partnerships and buyouts, shift to digital payments, increasing use of debit and credit cards have driven revenues; its strong balance sheet aids investments.
Per the Zacks analyst, D.R. Horton is poised to gain from its solid backlog, well-stocked supply of land, lots and homes.
The Zacks analyst thinks that Papa John's efforts to strengthen its franchise relations will help the company expand its worldwide presence and thereby revive its declining sales
Per the Zacks analyst, IBM's blockchain, cloud and ML capabilities, among others, should drive adoption of its solutions.
Per the Zacks analyst, Netflix's robust original movie slate, strong regional content portfolio and subscriber addition is expected to help it steer away competition.
Per the Zacks analyst, solid performance of General Electric's Aviation segment, led by strong demand of GE90 and GE9X engines and higher service revenue will continue to lend momentum to the company.
Per the Zacks analyst, Ulta Beauty's top line is set to gain from its loyalty program, which will be aided by brand additions, loyalty member maturations and higher penetration of credit card program.
The Zacks analyst believes that the U.S. federal government's approval of $3.7 billion in loan guarantees for the Vogtle nuclear plant will help Southern Company reduce its financing costs.
Per the Zacks analyst, higher costs related to the impact of new tailings dam regulations in Brazil will weigh on Mosaic's margin.
The Zacks analyst worries about Syneos's rising SG&A expenses which are putting pressure on margins. Also, tough competitive Contract Research Organization market is a worry.
The Zacks analyst thinks that increased investments in advertising and TV programming are hurting Carnival's profit margins.
Netflix, Inc. (NFLX): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.