Wednesday, October 30, 2024

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Amazon.com, Inc. (AMZN), Johnson & Johnson (JNJ) and Boston Scientific Corp. (BSX), as well as a micro-cap stock Armanino Foods of Distinction, Inc. (AMNF). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+27.2% vs. +25.4%). The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationships with third-party sellers is a positive. 

Amazon.com’s expanding global presence and solid momentum among the small and medium businesses, remain a plus. Growing adoption of AWS is aiding Amazon’s cloud dominance. Deepening focus on generative AI is a major plus. Also, improving Alexa skills along with robust smart home products offerings are tailwinds. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. 

However, macroeconomic challenges remain headwinds. Amazon issued weak third-quarter 2024 revenue guidance due to the changing shopping pattern of consumers, which is a negative.

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

Shares of Johnson & Johnson have gained +3.6% over the year-to-date period against the Zacks Large Cap Pharmaceuticals industry’s gain of +19.1%. The company beat third-quarter estimates for earnings and sales. Its Innovative Medicine unit is performing at above-market levels. Growth is being driven by existing products like Darzalex, Tremfya and Erleada and also continued uptake of new launches, including Spravato, Carvykti and Tecvayli.

J&J is making rapid progress with its pipeline and line extensions with important readouts lined up for 2025. However, sales in the MedTech segment have been lower than expected due to Asia-Pacific headwinds, specifically in China. 

J&J faces the upcoming patent expiration of the blockbuster drug Stelara in January 2025, which will hurt the drug’s sales.  J&J is incurring huge legal expenses due to the pending lawsuits related to its talc products.

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

Boston Scientific’s shares have outperformed the Zacks Medical - Products industry over the year-to-date period (+45.9% vs. +15.3%). The company is seeing strength across target markets despite macroeconomic concerns, currency headwinds and related cost inflation. Strong worldwide demand for its MedSurg and Structural Heart lines, traction in United States and outside for its the next generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers. 

The Pain and Brain franchisees are expected to gain solid traction in 2024 banking on strong execution of core growth strategies. The Electrophysiology arm continues to gain momentum on sustained adoption of FARAPULSE PFA. The 2024 guidance indicating strong growth over 2023 builds confidence in the stock. 

On the flip side, mounting costs due to worldwide geopolitical issues are major concerns. FX headwinds continue to largely offset the company’s performance.

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

Shares of Armanino Foods of Distinction have outperformed the Zacks Food - Miscellaneous industry over the year-to-date period (+51.5% vs. +1.1%). This microcap company with market capitalization of $224.1 million presents a compelling investment case, driven by record-breaking financial performance, strong cash reserves and market dominance in key categories. 

Third-quarter 2024 saw Armanino Foods' highest-ever sales and profits, with nine-month net sales growing 7% year over year to $50.9 million and a 65% rise in pre-tax income, boosted by improved margins. The company’s profitability, driven by cost-cutting and efficiency gains, has supported an 81% quarterly net income increase. 

With $24.3 million in cash and a steady dividend policy, AMNF is positioned for growth without tapping its credit line. Its 65% share in food service pesto and expansion into new U.S. retail regions underscore its brand strength. Focused on product innovation and operational efficiency, Armanino Foods is set for growth and future acquisitions, enhancing shareholder value.

(You can read the full research report on Armanino Foods of Distinction here >>>)

Other noteworthy reports we are featuring today include CME Group Inc. (CME), The Bank of New York Mellon Corp. (BK) and Leidos Holdings, Inc. (LDOS).

Mark Vickery
Senior Editor

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>>>