Thursday, April 21, 2022
 

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), Roche Holding AG (RHHBY), and Raytheon Technologies Corporation (RTX). 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 >>>
 

Shares of Johnson & Johnson have modestly outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+7.4% vs. +6.7%). The company’s pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara, and contribution from newer drugs, Erleada and Tremfya. Sales in the MedTech unit recovered in Q1 and the company is focusing on growing this business through new products.
 

However, sales in the Consumer unit are being hurt by external supply constraints. J&J is making rapid progress with its pipeline and line extensions. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.
 

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

Roche shares have gained +17.4% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +28.8%. The company’s strong demand for coronavirus tests, recently launched drugs and diagnostics platforms has led to a strong performance. The Zacks analyst believes that the core pharmaceuticals business is showing signs of recovery from COVID-19 disruptions. The diagnostics division maintains its stellar performance on strong demand for COVID-19 tests and other diagnostics platforms.
 

Strong growth in Ocrevus, Evrysdi, Tecentriq and Hemlibra continues to counter biosimilar competition for legacy drugs like Herceptin, Avastin and MabThera. Approval of new drugs should also boost the top line. However, biosimilar competition for key drugs weighs on its performance. The decline in sales of legacy drugs due to generic competition has also affected revenues.

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

Shares of Raytheon have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+33.9% vs. +17.8%). The company continues to receive ample orders for its combat-proven defense products from the Pentagon. The Zacks analyst believes that both domestic and international program growth to remain robust for its defense business in the coming days. The SEAKR Engineering acquisition is expected to bolster Raytheon’s space-based capabilities and would bring in improved synergies.
 

The stock holds a solid solvency position, at least in the near term. However, the outbreak of the Omicron variant has once again impacted demand in the commercial aerospace market, which in turn may hurt Raytheon’s Pratt & Whitney and Collins Aerospace segments. Purchase order declines also pose a risk to the stock.

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

Other noteworthy reports we are featuring today include Intuit Inc. (INTU), CVS Health Corporation (CVS), and Target Corporation (TGT).

Sheraz Mian
 
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>>>