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Top Research Reports for JNJ, AT&T & Lockheed Martin

Friday June 30 2017

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), AT&T (T), and Lockheed Martin (LMT).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 >>>

Johnson & Johnson shares have gained +9.3% over the last year, widely outperforming the large-cap pharma space (up +1.6%). Driving this outperformance is JNJ's diversified business model, deep product pipeline, and financial strength. The potential Actelion buyout, though expensive, is also expected to bolster the company's long-term growth. However, in 2017, growth in J&J's Pharma segment is expected to suffer as key growth drivers have slowed down due to competition. Estimates have remained mostly stable lately ahead of the Q2 results which come out on July 18th. J&J has a positive record of earnings surprises in the recent quarters. In the updated research report issued today, the Zacks analyst discusses the pros & cons of investing JNJ shares at present.

(You can read the full research report on Johnson & Johnson here >>> ) .

Operators in the U.S. wireless industry have bee suffering lately and AT&T is no different, even though it has done a tad bit better. The stock is down - 11.5% in the year-to-date period vs. -11.9% drop for the Zacks U.S. Wireless industry and -16.8% drop for Verizon (VZ). The saturated wireless market, losses in access lines, operating expenses, regulatory norms and union issues are acting as major headwinds. The company is actively engaged in upgrading its wireless business even as it fends off competitive challenges from other operators in its core business. On the diversification front, AT&T's Time Warner deal has gained the European Union's approval but awaits U.S. Justice Department's nod. The company's attractive dividend, currently yielding 5.1% appears safe, but these are nevertheless uncertain times in the wireless industry.

(You can read the full research report onAT&There >>> ) .

Lockheed Martin shares have gained +11.6% over the past year, underperforming the aerospace/defense sector, which has gained +24.4% over the same period. However, being the largest defense contractor in the world, Lockheed Martin continues to be a strong cash generator, which, in turn, helps it to take important cash deployment decisions. The Zacks analyst likes the company's solid presence in both domestic and international markets. Further, increased budget for the Department of Defense is expected to boost defense giants like Lockheed Martin. (You can read the full research report onLockheed Martinhere >>> ) .

Other noteworthy reports we are featuring today include Newell Brands (NWL), eBay (EBAY) and SunTrust Banks (STI).

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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 weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

J&J (JNJ) Boasts Deep Pipeline; Pharma Unit Growth to Slow Down

Fixed, Wireless Deployment Plans to Boost AT&T (T) 5G Suite

Solid Jet Orders Aid Lockheed (LMT), High F-35 Cost May Hurt

Featured Reports

eBay's (EBAY) Redesigned Apps to Aid Growth

Per the Zacks analyst, eBay is redesigning its mobile apps, which will boost its push into mobile and pave the way for growth. Sluggish macroeconomic environment however remains a headwind.

Rate Base View Aids Public Service (PEG) Amid Capex Plan

Per the Zacks analyst, expected long run growth in Public Service Enterprise's rate base will drive its earnings growth.

Anadarko's (APC) Premium Assets Helps to Offset Price Scare

The Zacks analyst believes Anadarko Petroleum's premium oil and gas assets located in Delaware and Denver-Julesburg Basins and GOM will enable it to offset the volatile commodity price movement.

Customer Concentration Ails Crown (CCI) Amid Transformation

Per the Zacks analyst, Crown Castle's efforts to transform itself from a tower company to a fiber provider looks impressive. High customer concentration is likely to affect the company's top line

Nasdaq's (NDAQ) Non-Transaction Revenues Grow, Expenses Drag

Nasdaq's growing non-transaction revenue continues to drive organic growth. 2017 operating expense is expected between $1.2 billion and $1.3 billion.

International Paper's (IP) Debt Costs Mar High-Return Projects

Per the Zacks analyst, International Paper is focusing on high-return capital projects within its core businesses to fuel growth as huge pension debt obligations and dollar strength remain headwinds.

Lower Margin Pressure Aids SunTrust (STI), Risky Loans a Woe

Per the Zacks analyst, easing margin pressure given the gradual rise in interest rates should aid SunTrust's revenues.

New Upgrades

Milacron (MCRN) Poised on Order Growth & Operating Cost Cuts

The Zacks analyst believes that Milacron's revenues will be supported by market growth, order growth, geographic expansion and new products. Also, its cost-reduction initiatives will boost margins.

Newell's (NWL) Project Renewal Program to Boost Profits

Per the Zacks analyst, Newell is on track with Project Renewal Program that aims at generating cost savings and investing the same to boost growth. This is likely to boost earnings in the long run.

Allegion (ALLE) to Gain from Republic Doors & Frames Buyout

Per the Zacks analyst, Allegion's acquisitions of Republic Doors & Frames will expand its product line and distribution footprint while improving operating efficiency.

New Downgrades

Severe Forex Flux Hurts IDEXX's (IDXX) Global CAG Business

While IDEXX's CAG business is growing worldwide, the Zacks analyst is concerned about ongoing currency fluxes dragging its overall sales down. Dependence on third-party distributors is a concern.

Waste Management (WM) Beset with Regulatory & Pricing Woes

Per the Zacks analyst, stringent government regulations are likely to erode profitability as compliance increase operating costs. The pricing environment also remains highly competitive.

Rising Personnel Cost a Worry for Associated Banc-Corp (ASB)

The Zacks analyst believes Associated Banc-Corp's continuously rising personnel costs is the primary reason for overall higher expenses.

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

AT&T Inc. (T): Free Stock Analysis Report

Newell Brands Inc. (NWL): Free Stock Analysis Report

Lockheed Martin Corporation (LMT): Free Stock Analysis Report

Johnson & Johnson (JNJ): 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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