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Research Daily

Tuesday, December 6 2016

Today's Research Daily features new research reports on 16 major stocks, including Johnson & Johnson (JNJ), Wells Fargo (WFC) and Wal-Mart (WMT).

Johnson & Johnson shares have bucked the broader healthcare slump this year and are up almost 9% year-to-date. 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.

We saw this in the company's Q3 earnings report when it beat on the top- and bottom-lines and provided favorable outlook. The analyst expects these trends to continue in the coming periods as well. (You can read the full research report on Johnson & Johnson here.)

Wells Fargo has long maintained a reputation for disciplined and reliable operations and an attractive retail banking franchise. Recent quarterly results showing strong growth in loans and deposits reconfirm the bank's inherent strengths, but they have been totally offset lately by the sales practices controversy that has already cost the well regarded CEO his position.

The new management team is making all the right moves and further downside risks in the stock may be low at this stage (the stock is down only 0.1% year to date vs. a roughly 14.6% gain for the peer banks), but it will likely take a while for clouds to fully lifted. (You can read the full research report on Wells Fargo here.)

Wal-Mart’s shares have surpassed those of other supermarkets, gaining more than 14% year-to-date. Though the company is facing a number of headwinds, estimates and share price of Wal-Mart has been rising since the company reported its third-quarter fiscal 2017 results. Wal-Mart posted positive earnings streak for the fifth consecutive quarter, but top-line marginally fell short of expectations after surpassing the same in the preceding two quarters, possibly due to deflationary pressure hurting comparable store sales.

Nevertheless, the analyst likes Wal-Mart’s focus on building its e-commerce capabilities, forays into new markets, expanding product assortments and implementation of innovative ways to drive traffic. (You can read the full research report on Wal-Mart here.)

Other noteworthy reports we are featuring today include Kimberly-Clark (KMB) and NIKE (NKE).

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Mark Vickery

Senior Editor

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