Wednesday, June 24, 2016
Today's must-read reports are for Johnson & Johnson (NYSE:JNJ) (JNJ), Salesforce (CRM) and Wells Fargo (NYSE:WFC) (WFC).
Johnson & Johnshon shares have outperformed its peers and the broad market in the year-to-date period on the back of solid earnings results and one of the most diverse revenue streams in the industry, particularly within the pharmaceutical division. While earnings estimates have been stable lately, the analyst likes this Zacks Rank #2 (Buy) stock for its diversified business model, financial strength, and a deep product pipeline. (You can read the full research report on JNJ here.)
Salesforce’s diverse cloud offerings, focus on strategic acquisitions to expand its market share and strong spending on digital marketing remain growth catalysts. It is among the top three Customer Relationship Management (CRM) vendors in the Software-as-a-Service (SaaS) enterprise application market. These positives aside, the analyst is concerned about the soft near-term IT spending outlook and other headwinds like stiff competition, currency fluctuations and an increase in investments for international expansions. (You can read the full research report on CRM here.)
Wells Fargo is relatively a more domestic-oriented big bank compared to many of its money-center peers, which is useful in the current environment of Brexit-related anxieties. The bank has cleared the annual stress test in 2016, experienced strong growth in loans and improved credit quality. However, the company reduced financial targets ahead of Q2 earnings in the wake of persistently low interest rates and stricter regulations. (You can read the full research report on WFC here.)
Other notable reports we are featuring today include Visa (V), Coca-Cola (KO) and General Electric (NYSE:GE) (GE).
- Visa (V) Gains Competitive Edge with European Acquisition
- Soft Emerging Market Sales Push Coke (KO) Down to Zacks Rank # 4 (Sell)
- General Electric (GE) Down to Zacks Rank # 4 (Sell)
You can find all of today's stock research reports here.
Sheraz Mian
Director of Research
Today's Must Read
Featured Reports
Sherwin-Williams (SHW) Poised to Gain From Valspar Buy
The analyst thinks Sherwin-Williams is well placed to gain from the Valspar acquisition and its cost control and productivity actions.
High Expense Levels Weighing On Ameriprise (AMP)?
Higher costs and outflows from the Asset Management segment remain concerns for Ameriprise despite its well-diversified portfolio, according to the Zacks analyst.
JB Hunt (JBHT) to Maintain Growth With Asset-Light Model
The covering analyst believes an asset-light model and rewards to shareholders are major positives for JB Hunt.
Stiff Competition Hurting Whole Foods' (WFM) Performance
Several companies are expanding their presence in the Organic & Natural food business which may dent Whole Foods' performance, according to the Zacks analyst.
Zimmer Biomet (ZBH) to Gain from New Product Launch, LDR Buy
Zimmer's impending LDR buyout should bolster its presence in the $10 billion global spine market while a strategic product launch is expected to add to its future growth.
Elevated Supply Curtails Growth For Equity Residential (NYSE:EQR)?
The analyst stresses that weakness in the New York and San Francisco portfolios has forced Equity Residential (EQR) to curb its 2016 outlook.
Winnebago's (WGO) Q3 Earnings Beat Estimates, Rise Y/Y
Winnebago's third-quarter fiscal 2016 earnings per share have increased year over year and surpassed the Zacks Consensus Estimate.
New Upgrades
Visa (V) Gains Competitive Edge with Visa Europe Buy
The Zacks analyst believes that while Visa gets a larger footprint in Europe with Visa Europe, there are other positives for the stock such as previous strategic acquisitions and alliances.
Better Cereal Sales Outlook for General Mills (NYSE:GIS)
According to the Zacks analyst, innovation efforts and a higher level of advertising will lead to better sales for the U.S. Retail segment in Q4, primarily in cereals and snacks.
Synovus Financial's (SNV) Asset Quality Continues to Improve
While Synovus Financial's credit quality continues to show improvement., expense-savings initiatives should ease pressure on the overall cost base.
New Downgrades
Soft Sales in Emerging Markets Worry Coca-Cola (KO)
Weakness in some emerging markets like China, Russia and Brazil is holding back significant sales acceleration for Coke, according to the Zacks analyst.
General Electric (GE) Susceptible to Market Risks Despite Prudent Effo
The covering analyst believes that despite prudent steps to limit financial exposure, GE is susceptible to market risks and simplification objectives pose significant operational execution risks.
Competition & Vendors Dependence Hit Genuine Parts (GPC)
The Zacks analyst thinks Genuine Parts is under pressure due to rising competition, vendor dependence and fragile economic conditions in some global markets.
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
SALESFORCE.COM (CRM): Free Stock Analysis Report
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Zacks Investment Research