Key research reports for Johnson & Johnson, Walt Disney and NextEra Energy

Wednesday, May 25, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Johnson & Johnson (JNJ), The Walt Disney Co. (DIS) and NextEra Energy, Inc. (NEE). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Johnson & Johnson shares have gained +10.0% over the past year versus the industry’s +25.0% gain Zacks Large Cap Pharmaceuticals. The Zacks analyst believes the company’s diversified businesses make it relatively resilient amid macroeconomic turmoil.

Its pharmaceuticals unit is performing better than the market, supported by its flagship drugs Darzalex and Stelara, and by the contribution of newer drugs, Erleada and Tremfya. Sales in the MedTech unit recovered in the first quarter and the company is focused on growing this business through new products.

However, Consumer segment sales are suffering from external supply constraints. J&J is making rapid progress with its pipeline and line extensions. Several pivotal data surveys are expected in 2022.

Headwinds such as generic competition and price pressure persist. Although J&J has taken significant steps to resolve its talc and opioid litigation, they remain an overhang on the stock.

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

waltz disney shares are down -42.1% over the past year against media conglomerate Zacks’ industry decline of -43.1%. The Zacks analyst believes that the company’s profitability should be negatively affected by higher investments in content, which will drive up programming and production costs at Media and Entertainment Distribution.

The closure of its Asian theme park due to COVID-19 does not bode well for growth in parks, experiences and product revenue. Disney expects this to reduce operating income by as much as $350 million in the fiscal third quarter. Disney’s leveraged balance sheet is concerning.

However, the company is benefiting from the growing popularity of Disney+, thanks to a strong content portfolio and a cheaper bundle. Availability in Nordic countries, Latin America and other Asian territories helps it expand its user base. The relaunch of the Parks, Experiences and Products activities is also promising in the long term.

(You can read the full research report on Walt Disney here >>>)

NextEra Energy shares have gained +3.1% over the past year against the industry’s +12.8% gain Zacks Utility – Electric Power. The Zacks analyst believes that with the successful execution of organic projects and strategic acquisitions, the company is expanding its operations and effectively serving more customers. NextEra Energy currently has many renewable projects in its backlog and the number is growing every quarter, helping NextEra reduce emissions.

The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Florida’s improving economy and FPL’s reliable services are increasing its customer volume every quarter.

NextEra Energy has sufficient liquidity to meet its short-term debt obligations. However, the nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs have a negative impact on the results.

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

Other noteworthy reports we feature today include The Home Depot, Inc. (HD), AstraZeneca PLC (AZN) and Anthem, Inc. (ANTM).

Marc Vickery
Senior Writer

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>

To read today

J&J (JNJ) has a strong pipeline

Disney (DIS) bets on the growth of Disney+ and the reopening of the parks

Stable investment and targeted support for renewable energy NextEra Energy (NEE)

Featured Reports

Focus on business customers to help Home Depot’s top line (HD)
According to the Zacks analyst, Home Depot’s Pro segment has been a key driver of sales growth for several quarters. It is on track with investments to build a Pro ecosystem. Professional sales overtook DIY sales in the first quarter

Cancer drugs drive AstraZeneca (AZN) sales and the pipeline is strong
The Zacks analyst says AstraZeneca’s cancer drugs Lynparza, Tagrisso and Imfinzi should continue to generate revenue. Its pipeline is strong with multiple Phase III data reads lined up.

Anthem (ANTM) rides on a strong headline and capital position
According to the Zacks analyst, Anthem’s strong bonuses, increased membership and strategic initiatives contributed to revenue growth. Additionally, its strong capital position remains a key enabler.

Republic Services (RSG) benefits from acquisitions and debt problems
Republic Services (RSG) revenue benefited from the favorable impact of acquisitions and organic growth. The Zacks analyst, however, is concerned about his indebted balance sheet.

A DexCom Pilot Rugged Sensor Unit (DXCM), higher costs are a misfortune
According to the Zacks analyst, DexCom has consistently won sensor and transmitter segments. However, rising operating costs continue to be a concern.

Acquisitions Support Regions Financial (RF), High Costs Garlic
According to the Zacks analyst, Regions’ strong liquidity position allows it to grow through acquisitions. Still, persistently rising costs from technology investments could limit near-term earnings growth.

A Strong Portfolio and Acquisitions to Drive PTC’s Performance
According to the Zacks analyst, PTC’s performance is being driven by strong demand for products such as Creo and Windchill. Strategic acquisitions have played a central role in reviving the company’s activity.

New upgrades

Watsco (WSO) benefits from customer-centric technologies
According to the Zacks analyst, Watsco has benefited from steady investment in customer-centric technology and the expansion of its branch network.

Meritage Homes (MTH) bets on strong housing demand and prices
According to the Zacks analyst, Meritage Homes benefited from increased demand resulting from low supply of new and resale homes. Plus, solid prices add to the happiness.

Delek (DK) will benefit from strong refining margins
The Zacks analyst believes that a marked improvement in petroleum product consumption, along with an increase in refining profitability, will boost Delek’s earnings and cash flow going forward.

New downgrades

Pandemic-Related Supply Constraints for All Applied Materials (AMAT)
Shortages of silicon components and other certain parts following pandemic-induced supply chain disruptions are hurting Applied Materials, the Zacks analyst said.

Forex volatility, high leverage concerns Manulife Financial (MFC)
According to the Zacks analyst, Manulife Financial has witnessed an increase in financial leverage over the past few years. Exchange rate volatility increases financial risk.

Chip Crunch and growing spending for Hurt Magna (MGA)
Zacks analyst is concerned that Magna’s volumes will be affected by the global chip crisis. Inflation in metal costs and soaring R&D spending are expected to weigh on the company’s margins.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

Free: See our best stock and our 4 finalists >>

Click to get this free report

NextEra Energy, Inc. (NEE): Free Stock Analysis Report

AstraZeneca PLC (AZN): Free Stock Analysis Report

Johnson & Johnson (JNJ): Free Stock Analysis Report

The Home Depot, Inc. (HD): Free Inventory Analysis Report

The Walt Disney Company (DIS): Free Inventory Analysis Report

Anthem, Inc. (ANTM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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