Top Stock Reports for Johnson & Johnson, Schlumberger & PayPal

Tuesday, October 24, 2017

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), Schlumberger (SLB) and PayPal (PYPL). 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 >>>

Buy-rated Johnson & Johnson’s shares have gained +27.1% in the year-to-date period, compared with the +23.5% gain of the Zacks Large Cap Pharmaceuticals industry. J&J beat estimates for both earnings and sales in the third quarter and raised its 2017 sales and profit outlook.

As indicated last quarter, J&J’s sales growth accelerated in the third quarter backed by higher sales in the pharmaceutical segment and positive contribution from the Actelion deal. 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, label expansion of drugs like Imbruvica and Darzalex and contribution from recent acquisitions - mainly Actelion – can support top-line growth.

Meanwhile, share buybacks and the restructuring initiative should provide bottom-line support. However, headwinds like generics, pricing pressure, sluggish growth in the Consumer segment and soft global market conditions remain.

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

Shares of Schlumberger have lost 24.7% year to date, following the Zacks Oil and Gas Field Services industry’s 30.3% decline. However, this compares unfavorably with rival Halliburton’s 21.0% decline. The company’s third-quarter 2017 earnings were in line with expectations. Also, the bottom line improved from the year-earlier adjusted profit.

Growing hydraulic fracturing work in the North American land market primarily supported the bottom line. Schlumberger is also expected to generate significant cashflow from the Palliser Block project where the company will assist Torxen Energy in setting up more than 1,600 oil wells.

However, since 2015, Schlumberger’s long-term debt load has increased considerably. Moreover, the company’s cash balance has been declining over the last seven quarters, reflecting significant balance sheet weakness.

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

Strong Buy-rated PayPal’s shares have outperformed the Zacks Internet Software industry in the year to date period (+76.9% vs. +25.4%). The company delivered strong third-quarter 2017 results, surpassing expectations on both counts. The results were driven by continued strong performance in global payments, both online and mobile. Currently, the company is riding high on partnerships and mobile centrism.

The Zacks analyst likes PayPal’s ongoing strategic partnerships with Visa and MasterCard since they offer great flexibility and choice to consumers. Partnerships with Google, Facebook, Pinterest, Alibaba, Intuit and other major retailers and financial institutions are also delivering positive results. However, continuous exposure to foreign exchange and interest rate risks are concerns.

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

Other noteworthy reports we are featuring today include Phillip Morris (PM), Adobe (ADBE) and Philips (PHG).

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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 Acquisitions to Support Top-Line

Schlumberger's (SLB) Higher Fracking Work Offsets Debt Load

PayPal (PYPL) Gains From Visa and MasterCard Partnerships

Featured Reports

HealthTech, Acquisitions Key Catalysts for Philips' (PHG) Growth

Per the Zacks analyst, Philips' HealthTech sales will benefit from increased spending on healthcare and fitness. Its recent string of acquisitions will help fortify its foothold in end markets.

V.F. Corp. (VFC) to Gain from Solid Direct-to-Consumer Sales

Per the Zacks analyst, V.F. Corp. should continue gaining from its direct-to-consumer business that grew 17% in the third quarter.

Financial Services, Buyouts to Drive DST Systems (DST)

Per the Zacks analyst, DST will perform well driven by strength in Financial Services segment and synergies from acquisitions.

New Products Drive Proofpoint (PFPT)

Per Zacks analyst, new product launches are anticipated to drive Proofpoint's top-line growth.

Acquisitions, Higher Rates to Aid Associated Banc-Corp (ASB)

The Zacks analyst believes that the acquisition of Whitnell & Co. and deal to acquire Bank Mutual as well as higher interest rates will further support Associated Banc-Corp's bottom line growth.

Adobe's (ADBE) Creative Cloud Business Drives Growth

The Zacks analyst thinks Adobe's cloud business provides significant revenues and generates high margins.

Hartford (HIG) Grows on Strategic Moves, Personal Lines Ail

Per the Zacks analyst, continued softness in Hartford's Personal Lines and Talcott Resolution segments is a worry.

New Upgrades

Sonoco (SON) Gaining from 'Grow and Optimize' Strategy

The Zacks analysts lauds Sonoco's 'Grow and Optimize' Strategy, per which it has made portfolio adjustments, acquisitions and launched new products to gain share in faster growing consumer markets.

Rising Loans and Acquisitions Support People's United (PBCT)

Per the Zacks analyst, People's United's strong liquidity position will help it to grow through acquisitions. Moreover, rise in loans and deposits balances aid top-line expansion.

NVR (NVR) Rides on Solid Backlog, Positive Housing Momentum

Per the Zacks analyst, NVR's solid backlog of $3.4 billion and positive housing outlook will drive growth.

New Downgrades

Alliant Energy's (LNT) Debts a Concern Amid Rising Rates

Long-term debt of Alliant Energy is on the rise and is a concern amid rising interest rates that have increased thrice in recent times.

Dwindling Subscriber Base Weighs on DISH's Prospects (DISH)

The Zacks analyst is pessimistic about DISH Network's video subscriber growth due to the increasing competition from online video streaming service providers.

Lower Cigarette Volumes Plague Philip Morris (PM)

Per the Zacks analyst, despite improved revenues from reduced risk products, Philip Morris' third-quarter results remained dismal on account of lower cigarettes volumes across its regional segments.

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Schlumberger N.V. (SLB) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
Philip Morris International Inc (PM) : Free Stock Analysis Report
 
Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report
 
Johnson & Johnson (JNJ) : Free Stock Analysis Report
 
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
 
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