Today's Must Read
PepsiCo (PEP) to Gain From Innovation & Productivity Plans
J&J (JNJ) Progresses with Pipeline; Generic Headwinds Stay
Wednesday, September 27, 2017
The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 12 major stocks, including Goldman Sachs Group Inc (GS), PepsiCo, Inc. (PEP) 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 >>>
Goldman Sachs’ shares have lost -3.9% in the year-to-date period, compared with the +11.3% gain of the Zacks Investment Bank industry. Yet the company carries an impressive earnings surprise history. It has surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters.
Though the company’s well-diversified business, expected lesser regulations and its focus to capitalize on growth opportunities through strategic moves should continue to bolster overall business, various lawsuits which have yet to be resolved are likely to lead to elevated expenses and litigation provisions in the near term.
PepsiCo’s shares have gained +4.1% over the last year, outperforming the Zacks Soft Beverages industry, which has increased +3.8% over the same period. PepsiCo has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution.
Moreover, it has been seeing higher volumes and profits in the North American segments due to an improving economy, better industry pricing dynamics and a consistency in positive innovation.
Johnson & Johnson’s shares have gained +13.8% in the year-to-date period, compared with the +11.8% gain of the Zacks Large Cap Pharmaceuticals industry. J&J is optimistic that sales growth will accelerate in 2H17. We believe that new drugs like Xarelto, Stelara, Darzalex and Imbruvica remain the key to growth.
Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. J&J is also making rapid progress with its pipeline and line extensions. The Actelion buy adds an attractive new therapeutic area – PAH – which should contribute to sales growth.
Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Inc. (VRTX), Cummins Inc. (CMI) and Fidelity National Information Servcs Inc. (FIS).
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
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>>>