Today's Must Read
Thursday, October 15, 2020
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 Johnson & Johnson (JNJ), Pfizer Inc. (PFE) and Target Corporation (TGT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Johnson & Johnson have declined -1.0% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +1.9%. The Zacks analyst believes that the coronavirus pandemic is hurting the company’s Medical Devices unit due to decline in elective surgical procedures and redeployment of hospital resources to address patients affected by the coronavirus pandemic.
J&J also faces a slew of lawsuits, which allege personal injuries to patients caused by the use of its medicines, mainly its talc and opioid products. These lawsuits have resulted in uncertainty.
However, successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara is a major positive. J&J is also making rapid progress with its pipeline and line extensions.
Pfizer shares have fallen -5.9% in the year to date period against the Zacks Large Cap Pharmaceuticals industry’s decline of -0.8%. The Zacks analyst believes that busines disruption from coronavirus, currency headwinds and pricing pressure are top-line headwinds for Pfizer. The company’s estimate movement is mixed ahead of Q3 earnings. Pfizer has a mixed record of earnings surprises in the recent quarters.
However, the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines. The smaller Pfizer should see better revenue growth as the Lyrica loss of exclusivity (LOE) cliff will go away.
Target shares have outperformed the Zacks Retail - Discount Stores industry over the past one-year period (+46.1% vs. +16.8%). The Zacks analyst believes that the company has been deploying resources to enhance omni-channel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide seamless shopping experience. Markedly, the company has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape.
Target’s impressive second-quarter fiscal 2020 performance is the testimony of the same, wherein both the top and the bottom lines grew year over year. Notably, comparable sales rose for the 13th straight quarter, gaining from strength in the digital channel as consumers shift to online shopping amid coronavirus-led social distancing.
Other noteworthy reports we are featuring today include BlackRock, Inc. (BLK), Prudential Financial, Inc. (PRU) and Seagate Technology plc (STX).
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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>>>