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Research Daily

Sheraz Mian

Top Analyst Reports for Johnson & Johnson, T-Mobile & Caterpillar


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Tuesday, December 5, 2023

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), T-Mobile US, Inc. (TMUS) and Caterpillar Inc. (CAT). 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 gained +2.0% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +6.8%. With the separation of the Consumer Health unit, J&J has now become a two-sector company focused on the Pharma and MedTech fields.

The Pharma unit is performing at above-market levels. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by recovery in surgical procedures and contribution from new products.

J&J is making rapid progress with its pipeline and line extensions. However, headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations

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

T-Mobile shares have outperformed the Zacks Wireless National industry over the past six months (+19.4% vs. +13.8%). The company reached its full-year target of covering 300 million Americans with ultra-capacity 5G network two months before its deadline.

Strong emphasis on developing advanced 5G use cases, such as roaming service on a 5G Standalone (SA) network will likely boost commercial prospect. Improvement in Postpaid average revenues per account and a record low postpaid churn rate are tailwinds.

However, management’s strategy of introducing several promotional activities to gain customers is weighing on margins. High debt obligations and macroeconomic challenges remain headwinds. Declining Equipment revenues and weak demand for Prepaid services are impeding the revenue growth.

(You can read the full research report on T-Mobile here >>>)

Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+13.5% vs. +12.5%). The company’s revenues and earnings have grown year over year due to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.

The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.

The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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

Other noteworthy reports we are featuring today include Broadcom Inc. (AVGO), Starbucks Corporation (SBUX) and Mitsubishi UFJ Financial Group, Inc. (MUFG).

Director of Research

Sheraz Mian

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>>>

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