Top Stock Reports for Facebook, JNJ, FIS & Others

Tuesday, May 19, 2020

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 Facebook (FB), Johnson & Johnson (JNJ) and Fidelity National Information Services, Inc. (FIS). 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 >>>

Facebook’s shares have outperformed the S&P 500 over the past year (+16.6% vs. +3.8%). The Zacks analyst believes that the company’s ad revenues in the first quarter benefited from a sturdy uptrend in gaming and relative stability in technology and e-commerce, partially offset by massive declines in travel and auto.

Facebook’s first-quarter 2020 results were driven by steady user growth across all regions. Management also stated that ad revenues showed signs of stability in the first three weeks of April. However, trends reflect weakness across the company’s all user geographies due to coronavirus-related lockdowns.

The company didn’t provide any specific revenue guidance for the second quarter of 2020 as well as the full year. However, higher operating expense is expected to hurt the operating margin in 2020 due to sluggish revenue growth.

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

Shares of Johnson & Johnson have gained +10.8% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +6%. The Zacks analyst has a favorable view of J&J’s diversification. While the coronavirus pandemic is hurting its Medical Devices unit, the Pharma and Consumer segments remain resilient.

J&J’s Pharma unit is performing above-market levels, supported by contribution from new drugs and successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions. Several pivotal data readouts and regulatory milestones are expected in 2020.

However, headwinds like generic competition and pricing pressure remain. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. These lawsuits have resulted in uncertainty.

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

Fidelity National Information Services’ shares have lost -13% over the past three months against the Zacks Financial Transaction Services industry’s fall of -13.8%. The Zacks analyst believes that acquisition of Worldpay is likely to accelerate growth by expanding presence in fast-growing markets. Further, increasing investment in mobile banking and innovative products is likely to support the company's growth.

Also, the company displays an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and met in one. First-quarter results reflect revenue growth and margin expansion. The company remains well-poised for growth, backed by attractive core business with several ongoing initiatives.

However, it remains exposed to rising costs and consolidation in the banking sector. Notably, the company temporarily suspended buybacks due to the Worldpay acquisition to undertake debt repayment.  

(You can read the full research report on Fidelity National Information Services here >>>)

Other noteworthy reports we are featuring today include Alibaba (BABA), Comcast (CMCSA) and Bristol-Myers Squibb (BMY).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Sheraz Mian

Director of Research

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

Expanding User Base, Instagram Strength Aid Facebook (FB)

J&J's (JNJ) Pharma Segment Resilient Amid Generic Headwinds

Digital Moves Aid Fidelity (FIS), Intense Competition Hurts

Featured Reports

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Per the Zacks analyst, Alibaba benefits from e-commerce business, cloud services & international growth.

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

Per the Zacks Analyst, Comcast benefits from an expanding high speed internet subscriber base as well as strong adoption of Xfinity and Flex services.

Revlimid, Eliquis Boost Bristol-Myers (BMY), Opdivo Weakens

Per the Zacks analyst, blood thinner drug, Eliquis and oncology drug Revlimid drive growth for Bristol-Myers.

Pandemic-Woes to Hurt 3M's (MMM) Sales, Inorganic Moves to Aid

Per a Zacks analyst, the coronavirus outbreak is expected to continue to adversely impact 3M's (MMM) sales in the quarters ahead.

Cost Savings to Aid Estee Lauder (EL), Store Closures a Woe

Per the Zacks analyst, Estee Lauder is set to gain from cost saving plans amid COVID-19 outbreak. However, store closures are likely to dent results in the fourth quarter.

Order Flows Aid General Dynamics (GD), Delayed Deliveries a Woe

Per the Zacks analyst, steady order flows from Pentagon boost General Dynamics' revenue. Yet, travel restrictions due to COVID-19 outbreak have delayed aircraft deliveries that may hurt the stock.

Las Vegas (LVS) Banks on Expansion Efforts, Coronavirus Ails

Per the Zacks analyst, in the long run, Las Vegas Sands is likely to benefit from $2.2 billion investment in Macau.

New Upgrades

Pioneer Natural (PXD) Banks on Oil-Rich Permian Basin

The Zacks analyst agrees that huge drilling inventories in the prolific Permian basin will provide Pioneer Natural with decades of crude production.

NEXT eMobility Solutions Business to Buoy Navistar (NAV)

Per the Zacks analyst, Navistar's NEXT eMobility Solutions will help the firm progress toward an electric future and launch medium-duty electric trucks, boosting its prospects.

ADTRAN (ADTN) Rides on Solid Traction Across Market Segments

Per the Zacks analyst, ADTRAN expects solid traction in domestic markets for ultra-broadband and Fiber-To-The-Home solutions with a healthy pickup in capital spending in Tier-1 & Tier-2 segments.

New Downgrades

Oil Collapse, Lower Output to Weigh on Diamondback (FANG)

The Zacks analyst believes the oil price around $30 will make it difficult for Diamondback to fund operations.

Euronet (EEFT) Hurt by High Costs, Declining Money Transfer

Per the Zacks analyst, the company's escalating expenses continue to put pressure on its margins. Money transfer is likely to be impacted by the COVID-19 pandemic.

Exposure to Cat Loss, High Expenses Ail AXIS Capital (AXS)

Per the Zacks analyst, AXIS Capital's exposure to catastrophe loss induces underwriting volatility while rising expenses weigh on margin expansion.

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Johnson Johnson (JNJ) : Free Stock Analysis Report
 
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Comcast Corporation (CMCSA) : Free Stock Analysis Report
 
BristolMyers Squibb Company (BMY) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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