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The Zacks Analyst Blog Highlights Tesla, Johnson & Johnson, Netflix, Abbott and ConocoPhillips
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For Immediate Releases
Chicago, IL – May 8, 2024 – 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: Tesla, Inc. (TSLA - Free Report) , Johnson & Johnson (JNJ - Free Report) , Netflix, Inc. (NFLX - Free Report) , Abbott Laboratories (ABT - Free Report) and ConocoPhillips (COP - Free Report) .
Q1 Earnings Season Scorecard and Fresh Analyst Reports for Tesla, J&J and Netflix
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q1 earnings season, in addition to updated research reports on 16 major stocks, including Tesla, Inc., Johnson & Johnson and Netflix, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Including all of the reports that came out this morning, we now have Q1 results for 426 S&P 500 members or 85.2% of the index's total membership. Total earnings for these companies are up +5.2% from the same period last year on +4.1% higher revenues, with 78.2% beating EPS estimates and 61% beating revenue estimates.
The Q1 EPS beats the percentage of 78.2% compared to a 20-quarter average of 77.8% and high-low range of 68.8% and 86.6% for this group of 426 index members. The Q1 revenue beat percentage of 61% compares to a 20-quarter average for this group of 426 index members of 70.1%, with the high-low range of 58.8% and 86.2%.
In other words, positive revenue surprises are on the lower side relative to recent history. The Q1 earnings and revenue growth rates represent an acceleration from what we had been seeing over the last few quarters, with the growth rates improving further when seen on an ex-Energy basis.
Excluding the Energy sector, Q1 earnings growth for the rest of the index would be up +8.4%. If also adjusted for the big Bristol Myers one-charge, the Q1 earnings growth improves to +12.1% on +4.7% higher revenues.
Today's Featured Analyst Reports
Shares of Tesla have underperformed the Zacks Automotive - Domestic industry over the year-to-date period (-25.6% vs. -22.7%). The company’s shrinking automotive margins and a slowdown in deliveries amid a cooling electric vehicle (EV) market have been plaguing. Tesla expects its vehicle volume growth rate for 2024 to be noticeably lower than 2023.
With competition intensifying in the EV space, Tesla’s focus on autonomous driving and artificial intelligence (AI) is expected to be a game changer. It aims to launch affordable vehicles, transition into an AI company and is banking on its robotaxi venture. The successful introduction of its Full Self Driving (FSD) software in China amid stiff competition marks a significant win.
Additionally, TSLA’s Energy Generation and Storage business is thriving. While near-term challenges persist, long-term prospects appear promising, driven by its big bet on driverless software and AI in an attempt to revive sales.
Johnson & Johnson shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-5.7% vs. +19.4%). The company is witnessing headwinds like generic competition and pricing pressure continue. 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, J&J’s Innovative Medicine unit is performing at above-market levels. Its growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also the 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.
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+22.6% vs. +7.4%). The company added 9.33 million paid subscribers globally in first-quarter 2024, with a rise of 1% in average revenue per subscription. The company attributed the robust top-line growth to its paid subscription-sharing offering (part of its password-sharing crackdown), recent price changes and the strength of its business in general.
Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. NFLX’s leveraged balance sheet and a higher streaming obligation are concerns.
Other noteworthy reports we are featuring today include Abbott Laboratories and ConocoPhillips.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Tesla, Johnson & Johnson, Netflix, Abbott and ConocoPhillips
For Immediate Releases
Chicago, IL – May 8, 2024 – 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: Tesla, Inc. (TSLA - Free Report) , Johnson & Johnson (JNJ - Free Report) , Netflix, Inc. (NFLX - Free Report) , Abbott Laboratories (ABT - Free Report) and ConocoPhillips (COP - Free Report) .
Q1 Earnings Season Scorecard and Fresh Analyst Reports for Tesla, J&J and Netflix
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the Q1 earnings season, in addition to updated research reports on 16 major stocks, including Tesla, Inc., Johnson & Johnson and Netflix, Inc. 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 >>>
Q1 Earnings Season Scorecard
Including all of the reports that came out this morning, we now have Q1 results for 426 S&P 500 members or 85.2% of the index's total membership. Total earnings for these companies are up +5.2% from the same period last year on +4.1% higher revenues, with 78.2% beating EPS estimates and 61% beating revenue estimates.
The Q1 EPS beats the percentage of 78.2% compared to a 20-quarter average of 77.8% and high-low range of 68.8% and 86.6% for this group of 426 index members. The Q1 revenue beat percentage of 61% compares to a 20-quarter average for this group of 426 index members of 70.1%, with the high-low range of 58.8% and 86.2%.
In other words, positive revenue surprises are on the lower side relative to recent history. The Q1 earnings and revenue growth rates represent an acceleration from what we had been seeing over the last few quarters, with the growth rates improving further when seen on an ex-Energy basis.
Excluding the Energy sector, Q1 earnings growth for the rest of the index would be up +8.4%. If also adjusted for the big Bristol Myers one-charge, the Q1 earnings growth improves to +12.1% on +4.7% higher revenues.
Today's Featured Analyst Reports
Shares of Tesla have underperformed the Zacks Automotive - Domestic industry over the year-to-date period (-25.6% vs. -22.7%). The company’s shrinking automotive margins and a slowdown in deliveries amid a cooling electric vehicle (EV) market have been plaguing. Tesla expects its vehicle volume growth rate for 2024 to be noticeably lower than 2023.
With competition intensifying in the EV space, Tesla’s focus on autonomous driving and artificial intelligence (AI) is expected to be a game changer. It aims to launch affordable vehicles, transition into an AI company and is banking on its robotaxi venture. The successful introduction of its Full Self Driving (FSD) software in China amid stiff competition marks a significant win.
Additionally, TSLA’s Energy Generation and Storage business is thriving. While near-term challenges persist, long-term prospects appear promising, driven by its big bet on driverless software and AI in an attempt to revive sales.
(You can read the full research report on Tesla here >>>)
Johnson & Johnson shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-5.7% vs. +19.4%). The company is witnessing headwinds like generic competition and pricing pressure continue. 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, J&J’s Innovative Medicine unit is performing at above-market levels. Its growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also the 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 >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+22.6% vs. +7.4%). The company added 9.33 million paid subscribers globally in first-quarter 2024, with a rise of 1% in average revenue per subscription. The company attributed the robust top-line growth to its paid subscription-sharing offering (part of its password-sharing crackdown), recent price changes and the strength of its business in general.
Netflix is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized and foreign-language content.
However, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, Disney+, Peacock and Paramount+ is a headwind. NFLX’s leveraged balance sheet and a higher streaming obligation are concerns.
(You can read the full research report on Netflix here >>>)
Other noteworthy reports we are featuring today include Abbott Laboratories and ConocoPhillips.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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/performance for information about the performance numbers displayed in this press release.