Best analyst reports for Apple, Tesla and Johnson & Johnson

Monday, January 31, 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 Apple Inc. (AAPL), Tesla, Inc. (TSLA) and Johnson & Johnson (JNJ). 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 >>>

Shares of Apple outperformed the S&P 500 over the past year (+27.8% vs. +19.3%), with December quarter bulk results expected to help maintain momentum in the stock despite continued market volatility. The Zacks analyst believes Apple has benefited from the momentum in the Services business, strong adoption of Apple Pay and growth in the Apple Music subscriber base.

Apple’s results in the first quarter of fiscal 2022 benefited from strong iPhone sales and continued momentum in the Services business amid significant supply chain constraints. Mac also had a strong quarter thanks to strong demand for the newly redesigned MacBook Pro, powered by the M1 chip. Apple, however, did not provide second-quarter revenue guidance due to pandemic uncertainties.

(You can read the full Apple research report here >>>)

You’re here shares have gained +19.3% over the past six months against Zacks’ domestic auto industry gain of +5.9%. The Zacks analyst believes strong demand for Model 3s and Ys has buoyed Tesla’s revenue.

Tesla hit record deliveries and record gross margin in the fourth quarter. Despite the global chip crisis, 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 capital investment plans are likely to hurt Tesla’s margins and cash flow in the coming quarters.

(You can read the full Tesla research report here >>>)

Shares of Johnson & Johnson have gained +6.1% in the last three months against the +4.1% gain of the industry Zacks Large Cap Pharmaceuticals. The Zacks analyst believes J&J has made rapid progress with its pipeline and line extensions, with several crucial data reads and regulatory milestones expected in the near term.

The pharmaceuticals unit also outperformed the market thanks to Darzalex and Stelara and the contribution of new drugs, Erleada and Tremfya, as well as the COVID-19 vaccine. Consumer unit sales are improving, despite external supply constraints. However, headwinds such as generic competition and pricing pressure continue to weigh on margins.

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

Other notable reports we feature today include Abbott Laboratories (ABT), Intel Company (INTC) and PetroChina Company Limited (PTR).

Sheraz Mian

Director of Research

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

Robust Wallet, Services Strength Benefiting Apple (AAPL)

Tesla (TSLA) Rolls On High Deliveries Amid Escalating Costs

J&J’s (JNJ) Three segments report 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 core business.

Intel (INTC) benefits from strong demand in the data center group
According to the Zacks analyst, Intel is benefiting from growing demand in the data center group, with a strong recovery of servers in enterprise and government, which bodes well for long-term growth.

PetroChina (PTR) will benefit from the natural gas business
The Zacks analyst believes PetroChina’s natural gas business offers lucrative growth prospects in the coming years as China switches from coal to cleaner fuels for environmental reasons.

Strong demand to help Caterpillar (CAT) amid margin pressures
According to the Zacks analyst, strong demand in its end markets will boost Caterpillar’s performance and help offset the impact of inflated input costs and supply chain issues on its margins.

ADP bets on strategic acquisitions in a context of technological challenges
The Zacks analyst likes ADP’s buyout strategy to strengthen its position in the human capital management market.

Investment in infrastructure and own assets Aid Dominion (D)
According to the Zacks analyst, Dominion’s planned investments through 2025 to improve clean power generation will increase its profitability.

Strategic Acquisitions, Synchronization of Low Cost Aid (SYF)
According to the Zacks analyst, the company’s strategic buyouts have helped it improve its digital capabilities and diversify its business. Lower expenses continue to help margins.

New upgrades

The nutrition segment will drive the growth of Archer Daniel (ADM)
According to the Zacks analyst, Archer Daniels is gaining strength in the Nutrition unit thanks to growth in the human and animal nutrition businesses. The unit expects operating profit growth of more than 15% in 2022.

Whirlpool’s (WHR) Efforts in Cost-Based Pricing to Generate Margins
According to the Zacks analyst, Whirlpool is implementing cost-based price increases in all regions to protect margins against inflation.

Dividends, buyouts and logistics unit Aid Knight-Swift (KNX)
The Zacks analyst is impressed with Knight-Swift’s efforts to reward its shareholders. The positive revenues of the Logistics segment (up more than 100% in 2021) are an additional strength.

New downgrades

F5 (FFIV) hurt by high spending and supply chain disruption
According to the Zacks analyst, while supply chain disruptions could limit F5’s sales growth, increased investment in improving sales and marketing capabilities is likely to hurt its profitability.

Puma Biotech’s overreliance on Nerlynx is a misfortune
According to the Zacks analyst, Puma Biotech relies heavily on its only marketed drug, Nerlynx, to drive sales. Other than Nerlynx, the company has no other candidates in its pipeline.

Supply chain issue hurts outlook for MKS Instruments (MKSI)
According to the Zacks analyst, MKS Instruments is suffering from supply chain constraints that will hurt its revenue growth in the near term. Fierce competition and customer concentration are headwinds.

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.

As one investor put it, “curing and preventing hundreds of diseases…what should this market be worth?” 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 a year.

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

Click to get this free report

Intel Corporation (INTC): Free Inventory Analysis Report

Abbott Laboratories (ABT): Free Inventory Analysis Report

Apple Inc. (AAPL): Free Inventory Analysis Report

Johnson & Johnson (JNJ): Free Stock Analysis Report

PetroChina Company Limited (PTR): Free Inventory Analysis Report

Tesla, Inc. (TSLA): 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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