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Top Research Reports for Johnson & Johnson, Honeywell & Morgan Stanley

Mark Vickery
Top Research Reports for Johnson & Johnson, Honeywell & Morgan Stanley

Tuesday, April 24, 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), Honeywell (HON) and Morgan Stanley (MS). 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 -12.1% in the last three months, underperforming the -9.6% decline of the Zacks Large Cap Pharmaceuticals industry. J&J beat estimates for both earnings and sales in the first quarter and upped its previously issued sales outlook for 2018.

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 is also making rapid progress with its pipeline and line extensions. 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 Buy-ranked Honeywell have outperformed the Zacks Diversified Operations industry in the last one year, increasing +14.9% vs. a -12.8% decline. Honeywell’s first-quarter 2018 earnings trumped expectations and rose 17.5% year over year.

The impressive performance can primarily be attributed to solid performances from each of the four segments of the company. The Zacks analyst likes the company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet amid a challenging macroeconomic environment.

With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions. Also, the company’s balanced mix of long- and short-cycle businesses along with a decent organic growth in new products and expansion in high-growth regions auger well on a long-term perspective. However, the company is susceptible to material price inflation, which might hurt its profitability.

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

Buy-ranked Morgan Stanley’s shares have underperformed the Zacks Investment Banking industry over the last six months (+6.2% vs. +12.4%). Yet, the company possesses an impressive earnings surprise history, beating expectations in each of the trailing four quarters. Its first-quarter 2018 results reflect a rebound in trading activities and improvement in advisory fees.

The company’s efforts to lower balance sheet risk and strengthen wealth management operations along with cost saving initiatives will continue to support growth. While higher interest expenses and muted investment banking performance are expected to hurt the company’s top-line growth, lower tax rates will aid profitability in the quarters ahead. Also, it will continue enhancing shareholder value through robust capital deployment activities.

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

Other noteworthy reports we are featuring today include BNY Mellon (BK), Novartis (NVS) and eBay (EBAY).

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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

J&J's (JNJ) Cancer Drugs and Acquisitions to Support Top-Line

Strong Aerospace Segment Drives Honeywell's (HON) Revenues

Wealth Management Focus, Trading Aid Morgan Stanley (MS)

Featured Reports

New Drugs to Offset Novartis' (NVS) Generic Segment Decline

Per the Zacks analyst, new drugs like Cosentyx and Entresto and oncology franchise's growth should enable Novartis offset the decline from the generic segment due to pricing pressure.

Intermodal Buoys Kansas City Southern (KSU) Amid Cost Woes

The Zacks analyst likes the impressive performance of its intermodal unit.

Recruitment Growth, Global Network Aids ManpowerGroup (MAN)

The Zacksanalyst believes that ManpowerGroup is strong on the back of skilled professionals, technological advancements, brand value and strong global network.

Wireless Subscriber Growth Aids Rogers Communications (RCI)

Per the Zacks analyst, solid subscriber gain in wireless segment is benefiting Rogers Communications.

Chemed (CHE) Gains Ground on Strong Roto-Rooter Business

The Zacks analyst is bullish about Chemed's Roto-Rooter arm seeing consistent growth on strength in the core plumbing and drain cleaning service segments as well as solid water restoration business.

Margin Improvement, Wide Client Base Aids NRG Energy (NRG)

The Zacks analyst believes NRG Energy will continue to gain from its transformation plan that is aimed to save more than $1 billion.

Denbury (DNR) to Gain on Gulf Cost Tertiary Oil Reserves

The Zacks analyst believes that Denbury's tertiary proved and potential oil equivalent reserves in the Gulf Coast and Rocky Mountain areas will support production growth.

New Upgrades

TransUnion (TRU) Benefits From Partnership With SavvyMoney

The Zacks analyst believes that TransUnion's strategic partnership with SavvyMoney helps the company gain a competitive edge and retain its market share.

Higher Rates & Fee Income Support BNY Mellon (BK) Revenues

Per the Zacks analyst, higher rates and rise in demand for loans will aid BNY Mellon's net interest income. This along with steady improvement in fee income will lead to increase in revenues.

eBay (EBAY) Marketplace to Benefit from PayPal Partnership

The Zacks analyst believes that partnering with PayPal will fuel growth in eBay's Marketplace business, contributing significantly to the company's top line.

New Downgrades

Higher Input Costs Weighs on Badger Meter's (BMI) Margins

The Zacks analyst thinks Badger Meter's margins will be impacted by rising copper costs. Further, charges related to the termination of pension plan remains a concern for its performance.

Boston Beer's (SAM) Dismal Sales Trend Worries Investors

Per the Zacks analyst, Boston Beer's top line graph seems troubled as evident from the negative sales surprise in four of the last six quarters. Lower shipment volumes and depletions are key culprits.

Toys "R" Us Liquidation & Unsold Inventory Ail Hasbro (HAS)

The Zacks analyst believes that the liquidation of Toys "R" Us, the last major chain fully dedicated to selling toys, along with unsold inventory negatively affects Hasbro's revenues

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Novartis AG (NVS) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
eBay Inc. (EBAY) : Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK) : Free Stock Analysis Report
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