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Top Stock Reports for Johnson & Johnson, Boeing & Pfizer

Mark Vickery

Thursday, October 17, 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 (JNJ), Boeing (BA) and Pfizer (PFE). 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’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date (4.7% vs. 0.3%). The Zacks analyst thinks that J&J’s Pharma unit is faced with significant generic/biosimilar headwinds in 2019.

However, J&J’s Pharma 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 and line extensions. It has gained FDA approval for two new drugs in 2019, Balversa and Spravato. J&J’s shares have outperformed the industry this year.

Headwinds like biosimilar/generic competition and pricing pressure remain. 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 >>>)

Shares of Boeing have lost 2% in the past six months against the Zacks Aerospace & Defense industry’s rise of 7.3%. The Zacks analyst believes that Boeing is the largest aircraft manufacturer globally in terms of revenues, orders and deliveries, and one of the major aerospace and defense contractors.

Its revenue exposure is spread across more than 90 countries. Boeing expects the commercial fleet to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes. Its proposed joint venture with Embraer is expected to strengthen its commercial business significantly.

However, the commercial business suffered a major setback due to lower 737 deliveries, following the 737 Max product line's grounding and subsequent costs associated with it. Consequently, its revenues, earnings and cash flow position were affected significantly. 

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

Pfizer’s shares have lost 15.6% over the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of 0.5%. The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.

Pfizer expects continued strong growth of key brands like Ibrance and Eliquis and biosimilars to drive sales in the second half. However, currency headwinds, weak sales in the sterile injectables portfolio, pricing pressure and some recent negative product developments for Prevnar and Xeljanz are top-line headwinds. Pfizer has a positive record of earnings surprises for recent quarters.

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

Other noteworthy reports we are featuring today include Qualcomm (QCOM), Petrobras (PBR) and Mitsubishi UFJ Financial (MUFG).

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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

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

Growing Jet Demand, Strategic Acquisitions Aids Boeing (BA)

Pfizer's (PFE) Business Reorganization Can Aid Sales Growth

Featured Reports

Acquisitions Aid Mitsubishi UFJ (MUFG), High Expenses A Woe

Per the Zacks analyst, Mitsubishi UFJ has been growing through acquisitions and focus on its business upgradation plan (2018-2021).

Qualcomm (QCOM) Rides on Product Strength to Dissuade Rivals

Per the Zacks analyst, Qualcomm retains a competitive edge with several technological achievements, novel portfolio and 5G system level solutions across sub-6, gigahertz and millimeter wave bands.

Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts

Petrobras' interests in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned over the company's huge debt load of nearly $83 billion.

Investments Aid Northrop (NOC), High Operating Expenses Hurt

Per the Zacks Analyst, Northrop Grumman's regular investments in growth projects bolsters its future prospects.

EOG Resources (EOG) Banks on Eagle Ford, Lease Expenses High

Huge inventory of premium drilling wells in the Eagle Ford shale will contribute to EOG Resources' oil production.

Steady Investments, Renewable Focus Aid Xcel Energy (XEL)

Per the Zacks analyst, disciplined investments in infrastructure projects and focus on renewable generation as well as expansion will strengthen Xcel Energy's existing operations.

Rising Data-Center Demand Aids Digital Realty's (DLR) Growth

Per the Zacks Analyst, Digital Realty's accretive acquisitions and development efforts augur well amid pick-up in demand for data centers.

New Upgrades

Improving Retention Rate, Pay-TV Resizing Aids DISH (DISH)

Per the Zacks analyst, DISH's excellent customer service is improving retention. Also focus on acquiring and retaining subscribers that are profitable over the long term, is paying off.

Digital Investments & New Channels Aid Discovery (DISCA)

Per the Zacks analyst, the increased monetization of digital streaming products and new channel launches in several markets are expected to boost Discovery's growth.

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%.

New Downgrades

Crude Weakness, Downstream Woes to Weigh on Chevron (CVX)

The Zacks analyst believes the sub-$55 oil price will make it difficult for Chevron to fund operations, making it dependent on asset sales. Weakness in its downstream unit is also a concern.

Hyatt's (H) Performance to be Hurt by Weakness in China

Per the Zacks analyst, lower demand in China and weakness in select business in the United States are likely to hurt Hyatt. Lingering political uncertainty in key operating regions remains a concern.

Freight Softness & Escalated Capex Ail Knight-Swift (KNX)

The Zacks analyst is worried about lackluster freight demand that is impeding Knight-Swift's growth. Moreover, high capital expenditures are denting the bottom line.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
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