Back to top

Research Daily

Thursday, October 17, 2019

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), Boeing (BA) and Pfizer (PFE). 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 >>>

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry year to date (4.7% vs. 0.3%). The Zacks analyst thinks that J&J’s Pharma unit is faced with significant generic/biosimilar headwinds in 2019.

However, J&J’s Pharma unit is performing above-market levels supported by contribution from new drugs like Tremfya and successful label expansion of cancer drugs like Imbruvica and Darzalex and immunology drug, Stelara. J&J is also making rapid progress with its pipeline and line extensions. It has gained FDA approval for two new drugs in 2019, Balversa and Spravato. J&J’s shares have outperformed the industry this year.

Headwinds like biosimilar/generic competition and pricing pressure remain. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products.

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

Shares of Boeing have lost 2% in the past six months against the Zacks Aerospace & Defense industry’s rise of 7.3%. The Zacks analyst believes that Boeing is the largest aircraft manufacturer globally in terms of revenues, orders and deliveries, and one of the major aerospace and defense contractors.

Its revenue exposure is spread across more than 90 countries. Boeing expects the commercial fleet to be fueled by sustained annual growth in commercial passenger traffic along with a big wave of retiring, old planes. Its proposed joint venture with Embraer is expected to strengthen its commercial business significantly.

However, the commercial business suffered a major setback due to lower 737 deliveries, following the 737 Max product line's grounding and subsequent costs associated with it. Consequently, its revenues, earnings and cash flow position were affected significantly. 

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

Pfizer’s shares have lost 15.6% over the past three months against the Zacks Large-Cap Pharmaceuticals industry’s rise of 0.5%. The Zacks analyst believes that the Consumer Healthcare joint venture with Glaxo, the Array acquisition and the pending merger of Upjohn unit with Mylan, if successful, will make Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.

Pfizer expects continued strong growth of key brands like Ibrance and Eliquis and biosimilars to drive sales in the second half. However, currency headwinds, weak sales in the sterile injectables portfolio, pricing pressure and some recent negative product developments for Prevnar and Xeljanz are top-line headwinds. Pfizer has a positive record of earnings surprises for recent quarters.

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

Other noteworthy reports we are featuring today include Qualcomm (QCOM), Petrobras (PBR) and Mitsubishi UFJ Financial (MUFG).

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

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>>>

Featured Reports

New Upgrades

New Downgrades