Friday, February 9, 2024

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), The Walt Disney Co. (DIS) and Uber Technologies, Inc. (UBER). 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 underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-7.8% vs. +12.2%). The company is witnessing headwinds like generic competition and pricing pressure. J&J faces the upcoming patent expiration of Stelara. Though it has taken meaningful steps to resolve its talc and opioid litigation, uncertainty regarding the talc litigations persists.

Nevertheless, Johnson & Johnson’s innovative Medicine unit is performing at above-market levels. Growth is being driven by existing products like Darzalex, Stelara, Tremfya and Erleada, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli.

The MedTech unit is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions.

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

Walt Disney’s shares have outperformed the Zacks Media Conglomerates industry over the past six months (+20.9% vs. +14.4%). The company’s results reflect a solid revival in international theme park and resort businesses. Recent attractions like the Frozen theme land at Hong Kong Disneyland and Walt Disney Park in Paris, as well as the Zootopia theme land at Shanghai Disney, are expected to boost the prospects of the theme park business.

Disney’s declining ad revenues due to fewer impressions has been a headwind for some time now. Disney+’s profitability is expected to be negatively impacted by higher investments in content, which will increase programming and production costs at Media and Entertainment Distribution.

However, its leveraged balance sheet remains a concern. Disney+ is facing tough competition in the streaming market from the likes of Netflix and Amazon Prime Video.

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

Shares of Uber Technologies have outperformed the Zacks Internet - Services industry over the past six months (+60.6% vs. +14.9%). The company’s delivery business benefits from rising online order volumes. The company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations is aiding the company.

For first-quarter 2024, Uber expects gross bookings of $37 billion-$38.5 billion. With focus on financial discipline, recovery in Mobility operations and the strong performance of the Delivery unit, betterment in Uber’s Adjusted EBITDA is encouraging. For first-quarter 2024, adjusted EBITDA is estimated between $1.26 billion and $1.34 billion.

On the flip side, Uber contines to witness high costs and expenses owing to rise in sales and marketing expenses and cost of revenues. Increased spending on driver incentives is also pushing up costs. High debt continues to act as another major concern.

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

Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), The Goldman Sachs Group, Inc. (GS) and Elevance Health, Inc. (ELV).

Mark Vickery
Senior Editor

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>>>