Wednesday, February 1 2017

Today's Research Daily features new research reports on 12 major stocks, including Johnson & Johnson (JNJ), PayPal (PYPL) and Thermo Fisher (TMO).

Johnson & Johnson have gained +8.5% over the last year, widely outperforming the large-cap pharma space (down -2.4%). J&J reported mixed fourth-quarter results, beating on earnings but missing on sales. However, the 2017 sales outlook was disappointing due to an expected slowdown in Pharma sales as a number of key growth drivers like Remicade and Concerta are facing competition.

While the company is faced with a number of headwinds like unfavorable currency movements, increased competition from generics, pricing pressures and an uncertain global macroeconomic backdrop, the analyst believes that JNJ's diversified business model, deep product pipeline, lack of cyclicality and financial strength position it for continued momentum going forward. (You can read the full research report on Johnson & Johnson here.)

PayPal shares have underperformed the Zacks Internet - Software industry over the last one year, gaining +7.3% vs +9%. However, the worldwide online payments system operator delivered decent fourth-quarter 2016 results, matching expectations on both counts. The analyst stresses that the company will continue to gain from partnerships and mobile centrism. PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers. 

Partnerships with Facebook, Google, and Alibaba are also delivering positive results. Venmo continues to contribute significantly to the company’s mobile payment volume. However, continuous exposure to foreign exchange and interest rate risks is a concern. (You can read the full research report on PayPal here.)

Thermo Fisher have outperformed the broader medical sector (up more than 16.6% over the last one year vs -3.6% ), Thermo Fisher ended the year 2016 on a mixed note with adjusted earnings ahead of expectations and revenues lagging the same. However, the analyst likes the company’s recent product launches along with strong emerging markets growth.

Thermo Fisher’s acquisition of FEI Company is also going to significantly facilitate its performance in life-science research. The upcoming integration and expected synergy of Affimetrix is another positive. (You can read the full research report on Thermo Fisher here.)

Other noteworthy reports we are featuring today include Celgene (CELG), Halliburton (HAL) American Airlines (AAL).

Zacks' Top 10 Stocks for 2017

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Mark Vickery

Senior Editor

Note: Director of Research Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview.

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