Top Analyst Reports For Johnson & Johnson, Apple & Goldman Sachs
Zacks Investment Research | May 20, 2019 03:13AM ET
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 (NYSE:JNJ), Apple Inc. (NASDAQ:AAPL) and The Goldman Sachs Group, Inc. (NYSE:GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see
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.
(You can ).
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.
(You can ).
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.
(You can ).
Other noteworthy reports we are featuring today include Accenture plc (NYSE:ACN), IBM Corp. (IBM) and Netflix, Inc. (NASDAQ:NFLX).
Zacks' Top 10 Stocks for 2019
Get The News You Want
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%.
Mark Vickery
Senior Editor
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
Today's Must Read/h6
Featured Reports/h6
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, 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.
New Upgrades/h6
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 (NYSE:SO) reduce its financing costs.
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 (NYSE:SO) reduce its financing costs.
New Downgrades/h6
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.
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.
undefined Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.