Monday, January 31, 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 Apple Inc. (
AAPL
), Tesla, Inc. (
TSLA
), and Johnson & Johnson (
JNJ
). 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
Apple
have outperformed the S&P 500 over the past year (+27.8% vs. +19.3%), with the block-busted December-quarter results expected to help sustain the stock’s momentum despite the ongoing market volatility. The Zacks analyst believes that Apple has been benefiting from momentum in the Services business, strong adoption of Apple Pay and growing Apple Music subscriber base.
Apple’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac also witnessed a strong quarter on the back of high demand for the newly redesigned MacBook Pro powered by M1 chip. Apple, however, did not provide revenue guidance for the second quarter due to pandemic-related uncertainties.
(You can
read the full research report on Apple here >>>
)
Tesla
shares have gained +19.3% over the past six months against the Zacks Domestic Automotive industry’s gain of +5.9%. The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla’s revenues.
Tesla hit record deliveries and an all-time high gross margin in Q4. Despite the global chip crunch, Tesla’s vehicle deliveries jumped 90% in 2021. TSLA is also poised to benefit from its Shanghai gigafactory. High R&D and SG&A costs along with massive capex plans are likely to hurt Tesla’s margins and cash flows in the quarters ahead.
(You can
read the full research report on Tesla here >>>
)
Shares of
Johnson & Johnson
have gained +6.1% in the last three months against the Zacks Large Cap Pharmaceuticals industry’s gain of +4.1%. The Zacks analyst believes that J&J has been making rapid progress with its pipeline and line extensions, with several pivotal data readouts and regulatory milestones expected in the near term.
The Pharma unit has also been performing at above-market levels on the back of Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya as well as the COVID-19 vaccine. Sales in Consumer unit are improving, withstanding external supply constraints. Headwinds like generic competition and pricing pressure, however, continue to stress margins.
(You can
read the full research report on Johnson & Johnson here >>>
)
Other noteworthy reports we are featuring today include Abbott Laboratories (
ABT
), Intel Corporation (
INTC
) and PetroChina Company Limited (
PTR
).
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Tesla (TSLA) Rides on High Deliveries Amid Escalating Costs
J&J’s (JNJ) Three Segments Register Mixed Performance
Featured Reports
Organic Sales Gain, High COVID Tests Demand Aid Abbott (ABT)
The Zacks analyst is impressed with Abbott’s strong recovery in the organic base business.
Intel (INTC) Rides on Solid Demand in the Data Center Group
Per the Zacks analyst, Intel is benefiting from the increasing demand in the Data Center Group, with strong server recovery in enterprise and government, which bodes well for long-term growth.
PetroChina (PTR) to Benefit from Natural Gas Business
The Zacks analyst believes that PetroChina’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to cleaner fuels for environmental reasons.
Strong Demand to Aid Caterpillar (CAT) Amid Margin Pressures
Per the Zacks analyst, strong demand in its end markets will drive Caterpillar’s top-line performance and help negate the impact of inflated input costs and supply chain issues on its margins.
ADP Rides on Strategic Buyouts Amid Technological Challenges
The Zacks analyst likes ADP’s buyout strategy to boost its position in the human capital management market.
Investment on Infrastructure & Clean Assets Aid Dominion (D)
Per the Zacks analyst, Dominion’s planned investments through 2025 to enhance clean electricity generation will boost its profitability.
Strategic Acquisitions, Reduced Costs Aid Synchrony (SYF)
Per the Zacks analyst, the company’s strategic buyouts have helped it enhance digital capabilities and diversify the business. A decline in expenses continues to aid margins.
New Upgrades
Nutrition Segment to Drive Archer Daniel’s (ADM) Growth
Per the Zacks analyst, Archer Daniels gains from strength in the Nutrition unit on growth in human and animal nutrition businesses. The unit expects more than 15% operating profit growth in 2022.
Whirlpool’s (WHR) Cost-based Pricing Efforts to Drive Margins
Per the Zacks analyst, Whirlpool is implementing cost-based price increases across every region to protect margins amid inflation.
Dividends, Buybacks & Logistics Unit Aid Knight-Swift (KNX)
The Zacks analyst is impressed with Knight-Swift’s efforts to reward its shareholders. Upbeat revenues from the Logistics segment (up more than 100% in 2021) is an added positive.
New Downgrades
F5 (FFIV) Hurt By Elevated Expenses, Supply Chain Disruption
Per the Zacks analyst, while supply-chain disruptions might restrict F5’s sales growth, increased investment toward enhancing sales & marketing capabilities are likely to hurt its profitability.
Puma Biotech’s Overdependence on Nerlynx a Woe
Per the Zacks analyst, Puma Biotech is highly dependent on its sole marketed drug, Nerlynx, to drive sales. Other than Nerlynx, the company has no other candidates in its pipeline.
Supply Chain Issue Hurts MKS Instruments (MKSI) Prospects
Per the Zacks analyst, MKS Instruments is suffering from supply-chain constraints that will hurt its top-line growth in the near term. Stiff competition and customer concentration are headwinds.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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