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Top Analyst Reports for Johnson & Johnson, Biogen & General Motors

Mark Vickery
Top Analyst Reports for Johnson & Johnson, Biogen & General Motors

Thursday, June 28, 2018

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), Biogen (BIIB) and General Motors (GM). 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 lost -5.1% in the last three months, underperforming the -2.4% decline of the Zacks Large Cap Pharmaceuticals industry. J&J’s sales growth has accelerated since the second half of 2017 backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices & Consumer segments.

Though quite a few key products in J&J’s portfolio like Remicade and Concerta are facing generic competition, the Zacks analyst thinks new products in all segments, successful label expansion of cancer drugs like Imbruvica and Darzalex and contribution from recent acquisitions will continue to drive top-line growth. J&J also enjoys a robust multi-year pipeline of new drugs and line extensions.

Meanwhile, share buybacks and restructuring initiatives should provide bottom-line support. Headwinds like generics, pricing pressure, sluggish growth in the Medical Device segment and soft global market conditions remain.

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

Shares of Biogen have underperformed the Zacks Biomedical and Genetics industry year to date (-9.7% vs. -9.5%). Biogen has a strong position in the MS market with a wide range of products - Avonex, Tysabri, Tecfidera & Plegridy. The Zacks analyst likes its efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke, among others.

Meanwhile, its newest drug, Spinraza, has multi-billion dollar potential. Biogen’s efforts to regularly in-license assets to build its pipeline are also encouraging. It has many assets in its pipeline, which have transformative potential. Multiple data read-outs are expected this year.

However, the launch of Ocrevus by Roche is beginning to have a negative impact on MS franchise sales in the United States, mainly on Tysabri. Also, Spinraza’s moderating trends in the United States is a concern. Also, recently, Biogen announced the decision to withdraw Zinbryta from the markets due to growing safety concerns.

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

Buy-ranked General Motors’ shares have outperformed the Zacks Domestic Automotive industry over the last three months, increasing +11.1% vs. +10.9%. General Motors expects weak used car pricing, a challenging pricing environment in the U.S. and China as well as more pressure on commodity costs.

Also, the company is facing a high inventory level of passenger cars. It is working toward bringing the inventory down by cutting production. Moreover, the company has been forced to scale down or shut its manufacturing operations in some regions due to production constraints such as high costs and unfavorable currency translation effects.

However, the company’s capital allocation strategy, initiatives to make its vehicles more advanced, safer and fuel efficient and focus on technology development are likely to benefit it.

(You can read the full research report on General Motors here >>>).

Other noteworthy reports we are featuring today include Valero Energy (VLO), GGP Inc. (GGP) and Ameriprise Financial (AMP).

5 Medical Stocks to Buy Now

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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

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>>>

Today's Must Read

New, Cancer Drugs to Support J&J's (JNJ) Top Line

Biogen's (BIIB) Spinraza Shines, Core Competition Heats Up

Strong Crossover & Truck Sales Drive General Motors (GM)

Featured Reports

Valero (VLO) Banks on Throughput, Blending Cost a Concern

The Zacks analyst believes that improving throughput volume on higher refinery utilization will help Valero to generate more cash flow.

Construction Materials to Drive Carlisle's (CSL) Revenues

Per the Zacks analyst, strong traction of Carlisle's Construction Materials business and solid recovery in the company's Interconnect Technologies business should continue to drive its revenues.

Snap-On's (SNA) RCI Program Aids Sales & Margins Growth

Per the Zacks analyst, Snap-On's focus on the rapid continuous improvement (RCI) program, designed to enhance organizational effectiveness and minimize costs, has boosted sales, margins and savings.

Genworth (GNW) Set for Growth on Improving Mortgage Business

Per the Zacks analyst, Genworth will gain from better Mortgage Business backed by lower new delinquency and potent loss mitigation programs.

Asset Growth Aids Invesco's Top Line (IVZ), High Costs a Woe

Per the Zacks analyst, rise in assets under management, driven by volatility in the equity market will aid Invesco's revenues.

GGP's Initiatives to Drive Mall Traffic to Bolster Revenues

The Zacks analyst appreciates GGP's strategic efforts aimed at driving mall traffic. Rising online sales remains a headwind.

Acquisitions Aid Ameriprise (AMP), Asset Outflows a Concern

Per the Zacks analyst, Ameriprise's inorganic growth plan and efforts in launching new products will support revenues.

New Upgrades

Paychex (PAYX) Rides on Outsourcing, PEO Industry Strength

The Zacks analyst is impressed with Paychex's efforts to capitalize on rising opportunities in the professional employer organization industry. Demand for outsourcing is another growth catalyst.

New Business Contract With Ford to Aid American Axle (AXL)

Per the Zacks analyst, the new business contract to supply power transfer units for Ford's crossover vehicles will help American Axle showcase its product and drive sales.

Lennar (LEN) to Gain from Higher Demand, Lower SG&A Expense

Per the Zacks analyst, Lennar is well positioned to capitalize on the housing recovery given its diverse revenue mix and solid order growth. Focus on improvements in the SG&A line will drive growth.

New Downgrades

Pipeline Delay, Jolt in Expansion Plan Ail Eversource (ES)

Per the Zacks analyst, Eversource Energy's prospects were impacted by delay in approval of $1.6 billion Northern Pass transmission project and failure to expand water business through acquisitions.

Woodward's (WWD) Industrial Segment Faces Demand Issues

Per the Zacks analyst, Woodward continues to face demand related challenges within the industrial gas and turbine market, adversely impacting revenue generation.

Smartphone Weakness, Samsung Dependence Hurts Maxim (MXIM)

Per the Zacks analyst, weakness in smartphone space and communication infrastructure is likely to hurt Maxim's consumer segment growth. Also, high dependency on Samsung shows customer concentration.

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Valero Energy Corporation (VLO) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
General Growth Properties, Inc. (GGP) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
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