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Top Analyst Reports for Alphabet, Amazon & Johnson & Johnson

Mark Vickery
Top Analyst Reports for Alphabet, Amazon & Johnson & Johnson

Monday, November 18, 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 Alphabet (GOOGL), Amazon (AMZN) and Johnson & Johnson (JNJ). 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 >>>

Alphabet’s shares have outperformed the Zacks Internet Services industry year to date (+27.6% vs. 9.5%). The Zacks analyst believes that the company’s strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Also, its strong focus on bolstering presence in the cloud market is encouraging.

Alphabet reported weak third-quarter earnings due to heavy investment in cloud computing and hardware businesses. However, Google’s robust mobile search is a positive. Notably, it has agreed to acquire Fitbit for roughly $2.1 billion.

This deal will likely help the company to accelerate innovation in the wearables category. However, the company’s growing litigation issues and competition might hurt profitability.

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

Shares of Amazon have lost 6.4% in the past six months against S&P 500’s rise of 9.6%. The Zacks analyst believes that the company benefited from solid Prime momentum owing to robust grocery services and strong content portfolio. 

Moreover, Prime Free One Day service helped Amazon in gaining traction across customers. Further, strengthening AWS services and its growing adoption rate contributed well to the third-quarter results. Improving Alexa skills and features remains a major positive. Expanding smart home products offerings are tailwinds.

However, rising transportation cost related to its free one-day shipping service remains an overhang and is likely to escalate further. Amazon also expects foreign exchange headwinds to continue impacting the top line.

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

Johnson & Johnson’s shares have gained 2% over the past three months against the Zacks Large Cap Pharmaceuticals industry's rise of 6.3%. The Zacks analyst believes that J&J is witnessing significant generic/biosimilar headwinds in the Pharma unit in 2019.

However, the unit is performing above-market levels 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/line extensions. It has already gained FDA approval for two new drugs in 2019, Balversa and Spravato.

Share buybacks and restructuring initiatives should provide bottom-line support. However, headwinds like biosimilar/generic competition and pricing pressure remain. Moreover, J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products.

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

Other noteworthy reports we are featuring today include UnitedHealth (UNH), Boeing (BA) and PetroChina (PTR).

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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 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

Alphabet (GOOGL) Rides on Diversification; Legal Troubles Ail

Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)

J&J's (JNJ) Pharma Unit Shines Amid Generic/Litigation Woes

Featured Reports

Strong Service and Benefit Business Aids UnitedHealth (UNH)

Per the Zacks analyst, the company's UnitedHeathcare and Optum businesses have been putting up a solid performance from past many years that have led to revenue and membership growth.

Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt

Per the Zacks Analyst, strategic mergers made by Boeing, such as overtaking KLX, boosts growth. However, low 737 deliveries as a result of the worldwide grounding of 737 Max jets raises concerns.

Upstream Unit Buoys PetroChina (PTR) Amid Gas Import Losses

The Zacks analyst believes oil production growth and lower lifting costs should aid PetroChina's upstream unit outlook but is worried over the losses on the domestic resale of imported natural gas.

Adoption of Cloud, Security & Analytics Solutions Aids IBM

Per the Zacks analyst, IBM's blockchain, cloud and machine learning capabilities, among others poises its solutions well to gain robust adoption.

Solid Demand for Products Aid Danaher (DHR), Forex Woes Drag

Per a Zacks analyst, Danaher (DHR) gains from solid demand for its products. Forex woes remain a concern.

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped boost its Medicare business.

Applied Materials (AMAT) Rides on Logic Spending, Risk Remain

Per the Zacks analyst, solid customer spending in foundry and logic will likely remain drivers. However, slowdown in memory spending is a concern.

New Upgrades

Cobre Panama Project, Energy Assets Aid Franco-Nevada (FNV)

Per the Zacks Analyst, Franco-Nevada is poised well to benefit from its healthy portfolio of streaming and royalty agreements, Cobre Panama project and solid performance of its energy assets.

Burlington Stores (BURL) Sturdy Comps Run to Propel Top-Line

Per the Zacks analyst, Burlington Stores' off-price model, comparable sales performance and growth strategies reinforce its position. Management expects third-quarter comparable sales growth of 2-3%.

Advanced Energy (AEIS) Banks on Acquisition Contributions

Per Zacks analyst, Artesyn Embedded Power buyout is aiding the position of Advanced Energy in the data center computing, and telecom and networking markets. This is driving its top-line growth.

New Downgrades

Wynn Resorts (WYNN) Grapples With High Debt Burden

The Zacks analyst believes that a high debt burden makes it difficult for Wynn Resorts to finance its upcoming projects. Macroeconomic or credit market downturn may further add to its concerns.

Dependence on Small Group of Suppliers Hurt UGI Corp (UGI)

Per the Zacks analyst, UGI Corp purchases its propane requirement from a concentrated number of suppliers. Any disruption in the supply will affect business and profitability.

Baked Goods & Meal Solutions Hit TreeHouse Foods (THS) Sales

Per the Zacks analyst, TreeHouse Foods' Baked Goods and Meal Solutions units are battling adverse volume/mix and currency woes.

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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
PetroChina Company Limited (PTR) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report, Inc. (AMZN) : Free Stock Analysis Report
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