Today's Must Read
Solid Insurance Business Aid Berkshire (BRK.B), Cat loss Ail
J&J's (JNJ) Pharma Segment Resilient Amid Generic Headwinds
Thursday, December 3, 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 Apple Inc. (AAPL), Berkshire Hathaway Inc. (BRK.B) and Johnson & Johnson (JNJ). 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 >>>
Apple shares have outperformed the S&P 500 in the year-to-date period (+67.6% vs. +14.2%) on the back of continued momentum in the Services segment, driven by a robust performance of App Store, Apple Music, video, and cloud services. Moreover, iPad, Mac and Wearables contributed strongly to the quarterly results. However, iPhone sales declined in the September-quarter release due to weakness in China and absence of the new iPhone.
Nevertheless, Apple’s near-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch 6 and robust growth in the Services business.
Shares of Berkshire Hathaway have gained +5.5% over the past year against the Zacks Insurance - Property and Casualty industry’s loss of -2.2%. The Zacks analyst believes that the company’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position supports earnings-accretive bolt-on buyouts and indicates the company's financial flexibility. Continued insurance business growth fuels increase in float, drive earnings and generates maximum return on equity.
However, exposure to catastrophe loss induces earnings volatility and also affects the property and casualty underwriting results of the company. Huge capital expenditure remains a headwind for the company.
Johnson & Johnson shares have gained +1.6% in the year-to-date period against the Zacks Large Cap Pharmaceuticals industry’s rise of +2.2%. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. The Zacks analysts believes that these lawsuits have resulted in uncertainties. At the same time, headwinds like generic competition and pricing pressure continue.
However, the company has raised its 2020 outlook due to faster-than-expected recovery in the Medical Devices unit with trends expected to improve further in Q4 and 2021. The Pharma unit is performing at above-market levels, supported by successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in the near-term.
Other noteworthy reports we are featuring today include Royal Dutch Shell PLC (RDS.A), Lockheed Martin Corporation (LMT) and The PNC Financial Services Group, Inc (PNC).
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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>>>