Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Johnson & Johnson, UnitedHealth, AT&T and Intel

Read MoreHide Full Article

For Immediate Release

Chicago, IL – October 30, 2018 – 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 - Free Report) , UnitedHealth (UNH - Free Report) , AT&T (T - Free Report) and Intel (INTC - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Johnson & Johnson, UnitedHealth, AT&T and Intel

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Johnson & Johnson, UnitedHealth, AT&T and Intel. 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 >>>

Buy-ranked Johnson & Johnson's shares have outperformed the Zacks Large Cap Pharmaceuticals in the past six months, gaining +8.3% vs. +7%. J&J beat estimates for both earnings and sales in Q3 and raised its outlook for the year.

The Zacks analyst thinks J&J’s sales growth has accelerated lately backed by above-market sales growth in the Pharmaceutical segment and improving performance in Medical Devices unit. Though quite a few key products in J&J’s portfolio are facing generic competition, new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth.

J&J is also making rapid progress with its pipeline and line extensions. Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. Headwinds like generics, pricing pressure and soft global market conditions remain.

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

Shares of Buy-ranked UnitedHealth have outperformed the Zacks Medical Insurance industry's rally in the past year (up +23.3% vs. +22.7%). UnitedHealth Group’s third-quarter earnings surpassed expectations and increased year over year. Higher revenues, strength in both segments — UnitedHealthcare and Optum — plus membership growth led to this outperformance.

The Zacks analyst thinks UnitedHealth has been performing well on the back of solid performance by UnitedHealthcare and Optum segments. The company's robust Government business is also driving long-term growth. Its international business and strong capital position are other positives. It has been witnessing an increase in membership over the past several years.

The company’s raised earnings guidance for 2018 should instill optimism among its investors. However, the company is witnessing pressure in membership in its commercial business. Increasing consolidation will also intensify competition in the industry.

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

AT&T’s shares have decreased -13.3% in the past year, underperforming the Zacks Wireless National industry's increase of +0.5%. AT&T reported solid third-quarter 2018 results with year-over-year increase in the top line driven by solid wireless performance, although adjusted earnings failed to beat estimates.

The Zacks analyst likes the fact that the company is ramping up its FirstNet program and revamping its lineup of video products, pricing and promotion initiatives. AT&T is also gearing up to launch the first standards-based 5G services in multiple U.S. markets by the end of 2018. The company reiterated its guidance on healthy growth dynamics.

AT&T is facing a steady decline in linear TV subscribers and legacy services. The company’s wireline division is facing losses in access line due to competitive pressure from voice-over-Internet protocol service providers. As AT&T tries to woo customers with healthy discounts, freebies and cash credits, margin pressures tend to escalate.

(You can read the full research report on AT&T here >>>).

Shares of Buy-ranked Intel have outperformed the Zacks General Semiconductor industry in the past year, gaining +3% vs. a decline of -2.3%. Intel reported stellar third-quarter results and provided encouraging forthcoming view. Both revenues and earnings increased on a year-over-year basis, primarily on the back of impressive results from both data-centric and PC-centric businesses.

The Zacks analyst likes the company’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory. Further, expanding customer base in the PSG segment drove top-line growth. Moreover, stable PC market is also positive for the company.

Additionally, lower spending helped in expanding operating margins. Intel raised 2018 guidance based on these solid growth trends. However, delays in transition to 10-nm process is a concern. Moreover, intensifying competition remains a headwind.

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

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 2020.

Click here for the 6 trades >>

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

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.

Published in