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The Zacks Analyst Blog Highlights Johnson & Johnson, Cigna, Vertex Pharmaceuticals, Xcel Energy and Illumina

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For Immediate Release

Chicago, IL – July 22, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Johnson & Johnson (JNJ - Free Report) , Cigna Corp. (CI - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) , Xcel Energy Inc. (XEL - Free Report) and Illumina, Inc. (ILMN - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Johnson & Johnson, Cigna and Vertex

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, Cigna Corp., and Vertex Pharmaceuticals Inc. 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 >>>

Johnson & Johnson shares have gained +0.8% over the past year against the Zacks Large Cap Pharmaceuticals industry's +20.3% gain. The company's Covid vaccine effort has turned out to be less than stellar, but the Zacks analyst sees JNJ's diversified revenue base makes it relatively resilient amid macroeconomic turmoil.

Its Pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara, and contributions from newer drugs, Erleada and Tremfya. Sales in the MedTech unit recovered in Q1 and the company is focusing on growing this business through new products.

However, sales in the consumer unit are being hurt by external supply constraints. J&J is making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2022. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.

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

Cigna shares have outperformed the Zacks Insurance - Multi line industry over the past year (+17.0% vs. -11.1%). The company's revenues have been increasing consistently for the past several years, driven by acquisitions, superior operating performance and high-quality products portfolio.

Business streamlining by divesting Group Life and Disability insurance business will help it focus on core growth areas. An expected increase in medical membership on the back of a diversified product portfolio, wide agent network and superior service are major positives.

It has been resorting to prudent capital deployment moves. In June 2022, it signed an accelerated share buyback agreement of $3.5 billion. However, high leverage can affect its financial flexibility. Rising operating costs might dent its margins.

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

Vertex shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+45.7% vs. -36.7%). The company's cystic franchise sales continue to grow driven by its triple therapy, Trikafta/Kaftrio. New reimbursement agreements in ex-U.S markets and label expansions to younger age groups in the United States are driving Trikafta/Kaftrio sales higher.

Meanwhile, Vertex has a broad clinical non-CF pipeline across six disease areas, which are progressing rapidly with impressive data presented from multiple programs recently, which established proof-of-concept.

Vertex faces only minimal competition in its core CF franchise. However, Vertex's dependence on just the CF franchise for commercial revenues is a concern. Vertex's non-CF programs carry significant risk, which is a concern.

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

Other noteworthy reports we are featuring today include Xcel Energy Inc. and Illumina, Inc.

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