Top Research Reports for J&J, Barclays and P&G

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Thursday, January 5 2017

Today's Research Daily features new research reports on 16 major stocks, including Johnson & Johnson (JNJ), Barclays (BCS), and Procter & Gamble (PG).

Johnson & Johnson shares were up +14.6% last year, widely outperforming the large-cap pharma space (down -3.8%) as well as the S&P 500 index (up +12.1%). While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. We saw this in the company's Q3 earnings report when it beat on the top- and bottom-lines and provided favorable outlook. The analyst expects these trends to continue in the coming periods as well; JNJ is scheduled to report 2016 Q4 results on January 24th. (You can read the full research report on Johnson & Johnson here >> )

Barclays shares have struggled for a while, but the British banking giant appears to have a turned the corner lately, with the stock outperforming the Zacks Foreign Banks industry over the past three months. The analyst thinks that this Zacks Rank #1 (Strong Buy) bank is on track to achieve targeted cost savings this year, driven by continued divestiture of non-core operations world-wide. These are expected to improve operational efficiency and lower expenses, thereby leading to improved profitability over time. Further, Moody's long term ratings upgrade enhances investors' confidence in the stock. (You can read the full research report on Barclays here >> )

Procter & Gamble shares were up +8.5% last year, outperforming the Zacks Consumer Staples sector (+4.1%). The analyst likes the company's strong organic sales, which grew 3% in Q3, the best performance in over two years. Productivity improvements and aggressive cost-saving efforts have consistently improved margins with the trend expected to continue going forward. On the flip side, the Zacks analyst points to mature end markets and the negative impact of the strong U.S. dollar as some of the headwinds for the stock. The company is expected to report Q4 results on January 24th, with the current Zacks Consensus EPS of $1.07 on $16.8 billion in revenues. (You can read the full research report on Procter & Gamble here >> )

Other noteworthy reports we are featuring today include eBay (EBAY), Kellogg (K) and Medtronic (MDT).

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Sheraz Mian

Director of Research

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 weeklyEarnings TrendsandEarnings Previewreports. If you want an email notification each time Sheraz publishes a new article, pleaseclick here >>>

Today's Must Read

J&J's (JNJ) New Drugs & Cost Savings to Drive Results in 2017

Barclays' (BCS) Streamlining Efforts Supporting Profitability

Procter & Gamble (PG) Portfolio Reshaping Plans Bode Well

Featured Reports

Microsemi (MSCC) Hit by Product Transition at Medical Customers

The Zacks analyst believes that despite Microsemi's focus on improving product mix, product transition at medical customers continues to impact revenues.

Assurant (AIZ) Focuses on Boosting Core Operations

The covering analyst believes that Assurant will remain committed toward boosting its core operations, while returning more value to its shareholders.

Kellogg's (K) Cost Saving Plans to Spur Growth, Sales Weak

The Zacks analyst thinks Kellogg's cost cutting initiatives have been supporting margins. However, continued weakness in North America and Europe raise concern.

Freeport (FCX) Poised on Cost Actions, Headwinds Remain

While Freeport should gain from its cost and debt actions, it is exposed to a still soft copper market environment and faces uncertainties related to its Indonesian operations, per the Zacks analyst.

PNC Financial (PNC) Depicts Cost Control & Organic Growth

The covering analyst thinks PNC Financial's efforts to drive operational efficiency remain encouraging.

Medtronic (MDT) Thrives on Innovations, Alliances amid Woes

The Zacks analyst likes Medtronic's recent collaboration with Fitbit on diabetes care which may prove helpful in firming its grip on this space.

CBRE Group (CBG) Gaining from Solid Technology Platform

The covering analyst thinks CBRE Group's persistent efforts to strengthen its technology platform are likely to drive marketing and leasing of commercial properties.

New Upgrades

Noble Energy (NBL) Gains from Cost Containment Efforts

The Zacks analyst believes that Noble Energy's focus on best-return assets and cost savings will bolster results amid the volatile commodity price environment.

MarketAxess' (MKTX) Rising Trading Volumes to Support Growth

The covering analyst thinks MarketAxess' profitability is likely to be aided by improving trading volumes, increasing client base and strong market position in the U.S. credit, despite cost concerns.

Integra (IART)'s Share Price Up, Expects Q4 Organic Growth

The Zacks analyst stresses that Integra is trading above the broader Medical-Biomed/Genetics industry. The company also expects organic growth across all segments in the upcoming fourth quarter.

New Downgrades

eBay (EBAY) Faces Tough Competition and Integration Risks

The Zacks analyst believes that integration risks and increasing competition from Alibaba and other smaller players are major concerns for eBay.

Canadian National (CNI) Downgraded on Top-Line Concerns

The covering analyst believes that Canadian National Railways is expected to face challenges in the coming period due to lower coal and intermodal volumes.

Amphenol (APH) Plagued by Global Macroeconomic Woes

Non-U.S. markets usually account for the lion's share of Amphenol's sales, due to which it is susceptible to volatility in foreign exchanges. High R&D and raw material costs remain other headwinds.

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

Procter & Gamble Company (The) (PG): Free Stock Analysis Report

Medtronic PLC (MDT): Free Stock Analysis Report

Kellogg Company (K): Free Stock Analysis Report

Johnson & Johnson (JNJ): Free Stock Analysis Report

eBay Inc. (EBAY): Free Stock Analysis Report

Barclays PLC (BCS): 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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