Monday, January 31, 2022

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 Apple Inc. (AAPL), Tesla, Inc. (TSLA), 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 >>>

Shares of Apple have outperformed the S&P 500 over the past year (+27.8% vs. +19.3%), with the block-busted December-quarter results expected to help sustain the stock's momentum despite the ongoing market volatility. The Zacks analyst believes that Apple has been benefiting from momentum in the Services business, strong adoption of Apple Pay and growing Apple Music subscriber base.

Apple’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac also witnessed a strong quarter on the back of high demand for the newly redesigned MacBook Pro powered by M1 chip. Apple, however, did not provide revenue guidance for the second quarter due to pandemic-related uncertainties.

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

Tesla shares have gained +19.3% over the past six months against the Zacks Domestic Automotive industry’s gain of +5.9%. The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla's revenues.

Tesla hit record deliveries and an all-time high gross margin in Q4. Despite the global chip crunch, Tesla’s vehicle deliveries jumped 90% in 2021. TSLA is also poised to benefit from its Shanghai gigafactory. High R&D and SG&A costs along with massive capex plans are likely to hurt Tesla’s margins and cash flows in the quarters ahead.

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

Shares of Johnson & Johnson have gained +6.1% in the last three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +4.1%. The Zacks analyst believes that J&J has been making rapid progress with its pipeline and line extensions, with several pivotal data readouts and regulatory milestones expected in the near term.

The Pharma unit has also been performing at above-market levels on the back of Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya as well as the COVID-19 vaccine. Sales in Consumer unit are improving, withstanding external supply constraints. Headwinds like generic competition and pricing pressure, however, continue to stress margins.

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

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), Intel Corporation (INTC) and PetroChina Company Limited (PTR).

Sheraz Mian

Director of Research

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>>>