Yahoo Finance Top Research Reports for Johnson & Johnson, Walt Disney & Uber
Friday, February 9, 2024
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), The Walt Disney Co. (DIS) and Uber Technologies, Inc. (UBER). 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 >>>
Shares of Johnson & Johnson have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-7.8% vs. +12.2%). The company is witnessing headwinds like generic competition and pricing pressure. J&J faces the upcoming patent expiration of Stelara. Though it has taken meaningful steps to resolve its talc and opioid litigation, uncertainty regarding the talc litigations persists.
Nevertheless, Johnson & Johnson’s innovative Medicine unit is performing at above-market levels. Growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli.
The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions.
(You can read the full research report on Johnson & Johnson here >>>)
Walt Disney’s shares have outperformed the Zacks Media Conglomerates industry over the past six months (+20.9% vs. +14.4%). The company’s results reflect a solid revival in international theme park and resort businesses. Recent attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Park in Paris, as well as the Zootopia theme land at Shanghai Disney, are expected to boost the prospects of the theme park business.
Disney’s declining ad revenues due to fewer impressions has been a headwind for some time now. Disney+’s profitability is expected to be negatively impacted by higher investments in content, which will increase programming and production costs at Media and Entertainment Distribution.
However, its leveraged balance sheet remains a concern. Disney+ is facing tough competition in the streaming market from the likes of Netflix and Amazon Prime Video.
(You can read the full research report on Walt Disney here >>>)
Shares of Uber Technologies have outperformed the Zacks Internet - Services industry over the past six months (+60.6% vs. +14.9%). The company’s delivery business benefits from rising online order volumes. The company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations is aiding the company.
For first-quarter 2024, Uber expects gross bookings of $37 billion-$38.5 billion. With focus on financial discipline, recovery in Mobility operations and the strong performance of the Delivery unit, betterment in Uber’s Adjusted EBITDA is encouraging. For first-quarter 2024, adjusted EBITDA is estimated between $1.26 billion and $1.34 billion.
On the flip side, Uber contines to witness high costs and expenses owing to rise in sales and marketing expenses and cost of revenues. Increased spending on driver incentives is also pushing up costs. High debt continues to act as another major concern.
(You can read the full research report on Uber here >>>)
Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), The Goldman Sachs Group, Inc. (GS) and Elevance Health, Inc. (ELV).
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
J&J's (JNJ) Innovative Medicine & MedTech Units Drive Growth
Improvement In Resorts & Park Businesses Aids Disney (DIS)
Uber (UBER) Rides on Delivery Business Amid Rising Expenses
Featured Reports
Verizon (VZ) Rides on Wireless Traction, Customer Additions
Per the Zacks analyst, Verizon is likely to benefit from significant 5G adoption and wireless traction, which has translated to solid customer additions driven by various mix and match pricing plans.
Strength in IB Business Aids Goldman (GS), Higher Costs Ail
Per the Zacks analyst, Goldman's focus on IB business as well as strong deal-making pipelines are likely to aid its top line. Yet, a rising expense base & volatile client-activity levels are concerning
Strategic Buyouts Aid Elevance Health (ELV), Cost Woes Stay
Per the Zacks analyst, a number of growth-related initiatives and an expanding product portfolio are strengthening Elevance Health's market position. However, high expenses put pressure on margins.
Kinder Morgan (KMI) to Gain on Take-or-Pay Contracts
The Zacks analyst likes Kinder Morgan since majority of its earnings are secured through take-or-pay midstream contracts, ensuring consistent payments. But, declining project backlog is a concern.
DICK'S Sporting (DKS) Store-Related & Other Efforts Seem Good
Per Zacks analys, DICK'S Sporting's store and cost-control efforts bode well. The company's DICK'S House of Sport, Golf Galaxy Performance Center and Going, Going, Gone!, have been performing well.
Teleflex (TFX) Rides on Interventional Arm, FX Woes Stay
The Zacks Analyst is impressed with Teleflex's strong performance in the Interventional Access business, led by key product portfolios including MANTA and structural heart. Yet, FX woes are a worry.
Strong Portfolio & Cost Control Aids MKS Instruments (MKSI)
Per the Zacks analyst, MKS Instruments benefit from a strong portfolio and prudent cost control. Atotech acquisition is driving growth.
New Upgrades
Focus on Clean Assets & Investments Aid Alliant Energy (LNT)
Per the Zacks analyst, Alliant Energy's investment of around $9.1 billion through 2027, will strengthen its operations. Adding more clean assets in generation portfolio will drive its performance.
H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons is expected to help H&R Block deliver sustainable revenues and operating profit growth, improve return on investments, and maintain a strong liquidity position.
Focus on Speculative Inventory & Financing Plans Aid MDC
Per the Zacks analyst, MDC is aiding from strategic shift to speculative inventory, financing initiatives and improved cycle times. This is reflected from surged net new orders and low cancellations.
New Downgrades
Strict Regulations, Competition Ail National Fuel Gas (NFG)
Per the Zacks analys, National Fuel Gas' performance can be negatively impacted due to strong competition in the natural gas industry. Stringent regulations trouble its business operations.
Weak China Demand, High Debt Ail Air Products (APD)
Per the Zacks analyst, weaker demand in China due to the economic slowdown may hurt volumes in the company's Asia segment. Its high debt level is another concern.
Weakness in Sensing Solutions' Segment Ails Sensata (ST)
Per the Zacks analyst, Sensata's performance was affected by softness in the Sensing Solutions business due to industrial markets witnessing a destocking pressure and unfavorable forex movement.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
