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The Zacks Analyst Blog Highlights: JNJ, WMT, BAC, IBM and LMT

Zacks Equity Research

For Immediate Release

Chicago, IL – June 16, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Johnson & Johnson JNJ, Walmart WMT, Bank of America BAC, IBM IBM and Lockheed Martin LMT.

Here are highlights from Monday’s Analyst Blog:

Top Research Reports for Johnson & Johnson, Walmart and Bank of America

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, Walmart and Bank of America. 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 underperformed the Zacks Large Cap Pharmaceuticals over the past year (+0.5% vs. +3.3%). The Zacks analyst believes that while the coronavirus pandemic is hurting the company’s Medical Devices unit, the Pharma and Consumer segments remain resilient.

J&J’s Pharma unit is performing above-market levels, supported by contribution from new drugs and successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions. Several pivotal data readouts and regulatory milestones are expected in 2020.

However, headwinds like generic competition and pricing pressure remain. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. These lawsuits have resulted in uncertainty.

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

Shares of Walmart have lost -2.3% over the past six months against the Zacks Supermarkets industry’s fall of -1.5%. The Zacks analyst believes that the stock has been benefiting from increased demand for essential items amid coronavirus.

Such trends drove the company in first-quarter fiscal 2021, wherein top and bottom lines rose year over year and beat the consensus mark, and U.S. comps grew for the 23rd straight time. Further, higher stay-at-home trends boosted e-commerce sales. Walmart has long been witnessing solid e-commerce sales, largely backed by grocery delivery.

Notably, it recently unveiled Express Delivery service to expedite deliveries amid coronavirus. The company is also undertaking other measures to support operations amid the pandemic, which however entail high costs and pose threats to the operating income. Also, the gross margin has been strained due to unfavorable mix and pricing.

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

Bank of America’s shares have gained +17.6% over the past three months against the Zacks Major Regional Banks industry’s rise of +18.8%. The Zacks analyst believes that opening new branches, improved digital offerings and efforts to manage costs will likely aid profitability.

Additionally, strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown. However, near-zero interest rates are expected to hurt the bank’s margins and interest income.

Also, coronavirus-induced concerns will likely continue to hamper business activities and thus, loan growth is expected to be muted. Further, dependence on capital markets performance makes us apprehensive, given its cyclical nature. This is likely to hurt fee income growth to some extent  

(You can read the full research report on Bank of America here >>>)

Other noteworthy reports we are featuring today include IBM and Lockheed Martin.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.

Click here for the 6 trades >>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Johnson Johnson (JNJ) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
Walmart Inc. (WMT) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
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