Top Analyst Reports for Johnson & Johnson, T-Mobile & Caterpillar
Tuesday, December 5, 2023
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), T-Mobile US, Inc. (TMUS) and Caterpillar Inc. (CAT). 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 gained +2.0% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +6.8%. With the separation of the Consumer Health unit, J&J has now become a two-sector company focused on the Pharma and MedTech fields.
The Pharma unit is performing at above-market levels. Growth in 2023 is being driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by recovery in surgical procedures and contribution from new products.
J&J is making rapid progress with its pipeline and line extensions. However, headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations
(You can read the full research report on Johnson & Johnson here >>>)
T-Mobile shares have outperformed the Zacks Wireless National industry over the past six months (+19.4% vs. +13.8%). The company reached its full-year target of covering 300 million Americans with ultra-capacity 5G network two months before its deadline.
Strong emphasis on developing advanced 5G use cases, such as roaming service on a 5G Standalone (SA) network will likely boost commercial prospect. Improvement in Postpaid average revenues per account and a record low postpaid churn rate are tailwinds.
However, management’s strategy of introducing several promotional activities to gain customers is weighing on margins. High debt obligations and macroeconomic challenges remain headwinds. Declining Equipment revenues and weak demand for Prepaid services are impeding the revenue growth.
(You can read the full research report on T-Mobile here >>>)
Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+13.5% vs. +12.5%). The company’s revenues and earnings have grown year over year due to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Other noteworthy reports we are featuring today include Broadcom Inc. (AVGO), Starbucks Corporation (SBUX) and Mitsubishi UFJ Financial Group, Inc. (MUFG).
Director of Research
Sheraz Mian
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 (JNJ) Pharma and MedTech Unit to Drive Growth
T-Mobile (TMUS) Rides on Postpaid Customer Growth, 5G Innovation
Strong Demand, Strategic Initiatives Aid Caterpillar (CAT)
Featured Reports
Strong Demand for Networking Products Aids Broadcom (AVGO)
Per the Zacks analyst, Broadcom is riding on robust demand for networking solutions. Strong adoption of next-gen merchant switching and routing solutions is driving top-line growth.
Store & Comps Growth Aid Starbucks (SBUX), High Costs Hurt
Per the Zacks analyst, Starbucks' rapid unit growth, digital offerings and robust comps growth bode well. However, increased expenses and inflation are major concerns to the company's growth trend.
Solid Liquidity & Growth Plans Aid MUFG, Decline in NII Ails
Per the Zacks Analyst, strong liquidity aids MUFG's buyouts. Focus on business upgradation plans & sustainable capital distributions are other positives. Yet, a decline in NII and high costs are woes
EOG Resources (EOG) Banks On Oil-Rich Delaware Basin Assets
The Zacks analyst expects EOG Resources' numerous untapped premium drilling locations in the Delaware basin to drive oil production growth. However, rising lease and well expenses are concerning.
Marathon (MPC) Gains from Sale of Speedway Retail Unit
The Zacks analyst believes that the sale of Marathon's Speedway and supply contract will bring in extra money and ensure consistent revenue, but MPC's higher RFS costs are a cause for concern.
Cognizant (CTSH) Rides on Acquisitions, Strong Partner Base
Per the Zacks analyst, Cognizant is benefiting from accretive acquisitions. A strong partner base has been helping it to expand its clientele.
Ralph Lauren (RL) Next Great Chapter Accelerate Plan On Track
Per Zacks analyst, Ralph Lauren's Next Great Chapter plan, including simplified organizational structure and technological capabilities, is encouraging. It benefits from robust demand & brand strength
New Upgrades
Strategic Efforts, Lower Costs Aid Hartford Financial (HIG)
Per the Zacks analyst, Hartford Financial's strategic initiatives, like vending of non-core businesses to focus on its U.S. operations, bode well. Lower expenses might aid its margins in the future.
American Airlines (AAL) Benefits From Rosy Passenger Traffic
Upbeat air-travel demand is driving American Airlines' top line. The Zacks analyst also finds the company's debt-reduction initiatives very encouraging.
Solid Subscription & Political Ad Revenues Aid TEGNA (TGNA)
Per the Zacks analyst, TEGNA is benefiting from continued spike in subscription revenues and strong spending on political advertisements.
New Downgrades
Rising Rates, Risky Nuclear Plant Operation Ail Dominion (D)
Per the Zacks analyst, Dominion's capital projects will become costlier due to the rising interest rates. Risk associated in operating nuclear facilities will create additional challenges.
Supply Issues, Elevated Costs Ail Astec's (ASTE) Margin
Per the Zacks analyst, Astec's results will be impacted by supply chain-related issues. Manufacturing inefficiencies and elevated material costs add to the headwinds.
Weak European Macro Environment Key Concern for Revvity (RVTY)
Per the Zacks analyst, lackluster academic end market in Europe, coupled with issues related to third party logistics provider in have been negatively impacting organic revenue growth of the company.
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Caterpillar Inc. (CAT) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report
