Top Research Reports for Johnson & Johnson, Visa & Verizon

Tuesday, September 25, 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), Visa (V) and Verizon (VZ). 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 underperformed the Zacks Large Cap Pharmaceuticals industry year to date, gaining +0.6% vs. +6.7%. However, J&J’s sales growth has accelerated since second half of 2017 backed by higher sales in the Pharmaceutical unit and improving performance in Medical Devices unit. J&J has already raised its full-year organic sales growth expectations twice this year.

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 Consumer unit and soft global market conditions remain.

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

Shares of Buy-ranked Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+44.9% vs. +38.7%). The Zacks analyst thinks the company is witnessing growth in payments volume, cross-border volume and processed transactions owing to a strong economy and positive consumer sentiment driving higher spending.

Numerous strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent revenue rise. Visa is well poised to gain from the growing electronic payment processing and a strong international business.

Given solid operational performance, management expects fiscal 2018 operating EPS to grow in low-30s on low double digits revenue growth. A solid balance sheet ensures effective capital deployment. Nevertheless, high client incentives might put pressure on revenues.

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

Buy-ranked Verizon’s shares have gained +8.1% over the past year, outperforming the Zacks Wireless National industry’s loss of -2.7% during the same period. Verizon expects healthy improvement in margins on the back of strong FiOS network and strategic services in the Wireline business.

The company plans to launch next-generation 5G wireless residential broadband services in three to five U.S. markets in 2018. The Zacks analyst thinks focus on online content delivery, mobile video and online advertising will drive growth. Aggressive expansion in fiber optics network also augurs well.

Verizon has already started upgrading the aging copper network infrastructure of Boston and Sacramento with fiber and wireless network to support high-end mobile and wireline services for smart city, residential and business applications. However, the company continues to struggle in a highly competitive and saturated wireless market, where spectrum crunch has become a major issue, reducing its profitability to some extent.

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

Other noteworthy reports we are featuring today include Alphabet (GOOGL), NIKE (NKE) and Altria (MO).

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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) New Products and Cancer Drugs to Support Sales

Acquisitions, Investments in Technology Aid Visa (V)

Verizon (VZ) Rides High on Extensive Fiber-Optic Network

Featured Reports

Strong Digital Growth Helps Revive NIKE (NKE) North America

Per the Zacks analyst, NIKE's North America business returned to growth in fourth-quarter fiscal 2018, backed by digital growth of more than 30%.

United Technologies (UTX) to Gain From Rockwell Acquisition

Per the Zacks analyst, strategic business acquisitions, like the $30-million Rockwell Collins buyout, strong liquidity and solid end-market sales will boost United Technologies' near-term profits.

Accenture (ACN) Gains On dgroup Buyout Amid High Competition

The Zacks analyst believes that acquisitions of dgroup and Reactive Media have enabled Accenture to strengthen digital marketing capabilities and effectively compete with the likes of IBM and Dell.

Infosys (INFY) Rides on Digital Business and Partnerships

Per the Zacks analyst, Infosys is benefiting from digital services growth, which is helping it win customers. Its partnership with the likes of Google Cloud, Adobe & Amazon Web Services is a tailwind.

Passenger Revenues Aid Alaska Air (ALK) Amid High Fuel Costs

The Zacks analyst likes the growth in passenger revenues at Alaska Air Group.

High Card Sales Boost Discover Financial (DFS), Costs Hurt

Per the Zacks analyst, rising card sales volume, driven by alliances and partnerships boosted the company's growth.

Acquisitions Aid Business Growth at Global Payments (GPN)

Per the Zacks analyst, acquisitions like Heartland Payments, Pay and Shop, Ezidebit, PayPros, eWay, communities and sports divisions of ACTIVE Network, have added breadth to the company's business.

New Upgrades

Altria (MO) to Benefit From Strength in Smokeless Products

Per the Zacks analyst, Altria is likely to continue gaining from low-risk smokeless tobacco products. The category has been benefitting from improved e-vapor volumes and favorable pricing.

Higher Fees Continue to Aid Brown & Brown's (BRO) Revenues

Per the Zacks analyst higher commissions and fees will continue to boost revenues for Brown & Brown, thereby accelerating the company's overall growth.

Dividends, Buybacks & Acquisitions Buoy Wabtec (WAB)

The Zacks analyst likes Wabtec's growth-by-acquisition strategy. On closure, the GE Transportation deal should expand its portfolio significantly. Efforts to reward investors are encouraging too.

New Downgrades

Litigation Charges & Rising Expenses Hurts Alphabet (GOOGL)

Per the Zacks analyst, Alphabet faces significant litigation globally due to its dominant position in search which is a drain on resources. Also, increased spending remains a concern.

Permian Activity Slowdown to Weigh on Halliburton (HAL)

The Zacks analyst is concerned that a slowdown in the oil and gas rich-Permian Basin activity due to pipeline constraints will be a drag on Halliburton's near-term earnings.

LabCorp's (LH) Food Solutions Selloff May Lead to Sales Loss

The Zacks analyst is worried about LabCorp's decision to divest its Food Solutions arm. The company's lackluster financial outlook contains a likely revenue loss generating from the impending selloff.

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Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
NIKE, Inc. (NKE) : Free Stock Analysis Report
 
Altria Group, Inc. (MO) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
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