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 (NYSE: JNJ), Abbott Labs (NYSE: ABT), Bristol-Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE).
See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673
Here are highlights from Monday’s Analyst Blog:
Fair Value for Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is one of the world's largest providers of health care products in the consumer, pharmaceutical and medical devices market. It has over 200 operating companies around the world and sells its products in more than 175 countries. J&J has an enormously diverse revenue stream consisting of market leading products in all three of its business segments.
Unfortunately, given the sheer size of the company's top line, J&J also possesses several declining or struggling products. Investment in J&J offers consistency and reliability, but we believe the shares are fairly valued at current levels.
The company currently trades around 14.9x our 2007 EPS [earnings per share] estimate of $4.08. This is generally in-line with the rest of the large-cap pharmaceutical group. Direct competitors such as Abbott Labs (NYSE: ABT), Bristol-Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE) sell at an average forward P/E [price-to-earnings] ratio of 17x for 2007.
Historically, J&J has sold at a premium to the S&P 500 and pharmaceuticals. As such, we believe the current price makes J&J an attractive long-term investment. We believe the stock is correctly priced, and should post in-line returns over the next six-to-nine months.
See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645.
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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