Top Research Reports for Johnson & Johnson, Roche & Raytheon

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>>>

Today's Must Read

J&J's (JNJ) Three Segments Register Mixed Performance

Tecentriq, Ocrevus Boost Roche (RHHBY), Competition Weighs

Buyout Synergies Aid Raytheon (RTX) Amid Purchase Oder Fall

Featured Reports

Cost Saving Efforts Aid Bank of America (BAC), Low Rates Ail
Per the Zacks analyst, Bank of America's efforts to save costs and enhance digital capabilities will aid profits. Despite several rate hike expectations, relatively low rates hurt net interest yields.

Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.

CVS Health's (CVS) Retail Segment Grows Amid Rising Costs
The Zacks analyst is upbeat about robust sales performance by CVS Health's retail segment. Yet, mounting operating expenses continue to build pressure on the company's bottom line.

Restructuring Aids General Electric (GE), Gas Power a Woe
Per the Zacks analyst, General Electric's business portfolio-restructuring program continues to lend momentum to it. Softness in the company's gas power equipment business remains a concern.

Halliburton (HAL) to Gain from Strong Cash Flow Generation
The Zacks analyst likes Halliburton's ample cash flows that provide it with the flexibility to tap growth opportunities but is worried about the weakness in its key Completion and Production unit.

Accelerating Non-Trading Revenue Base Aids Nasdaq (NDAQ)
Per the Zacks analyst, Nasdaq is set to grow on its focus toward Market Technology and Information Services businesses. However, increasing expenses weighing on margin expansion is likely a concern.

Robust e-Commerce Growth & Product Launches Aid Hasbro (HAS)
Per the Zacks analyst, strong e-Commerce sales, supreme gaming portfolio, new product launches, strategic partnerships and strong product line-up continues to boost the Hasbro's performance.

New Upgrades

Target's (TGT) Omnichannel Efforts, Digitization to Aid Sales
Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options have been fueling sales.

Technology & Connected Vehicles Fleet Aid Avis Budget (CAR)
The Zacks analyst appreciates Avis Budget's enhanced technology and improved offerings. Moreover, its focus on vehicles fleet is impressive.

Iridium's (IRDM) Performance Gains from Higher Subscribers
Per the Zacks analyst, Iridium top line is gaining from increasing subscribers. The company expects commercial service revenues to benefit from ongoing activations and uptake of broadband services.

New Downgrades

AT&T (T) Hurt by Declining Legacy Services, Debt Burden
Per the Zacks analyst, apart from intense competition, AT&T is struggling with a steady decline in its legacy telephony Internet and wireline services, which directly weighs on its bottom-line growth.

Weak Online Business Amid Stiff Competition Hurts Zoom (ZM)
Per the Zacks analyst, weakness in online business amid stiff competition from Microsoft and Cisco is expected to hurt top-line growth in the near term.

Marketing & Product Development Costs Hurt Green Dot (GDOT)
Per the Zacks analyst, Green Dot's increasing expenses toward sales, marketing and product development is likely to keep the bottom line under pressure.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.