Zacks Analyst Blog features Johnson & Johnson, Advanced Micro Devices, Union Pacific, Anheuser-Busch, and ServiceNow

For Immediate Release

Chicago, IL – June 28, 2022 – announced the list of stocks featured on the Analyst Blog. Every day Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets. Stocks recently featured on the blog include: Johnson & Johnson JNJ, Advanced Micro Devices, Inc. AMD, Union Pacific Corp. UNP, Anheuser-Busch InBev SA/NV BUD, and ServiceNow, Inc. NOW.

Here are the highlights from Monday’s Analyst Blog:

Q2 Earnings Season Preview and Featured Analyst Reports for J&J, AMD and Union Pacific

Zacks Research Daily presents the best research results of our analyst team. Today’s Research Daily features current 2022 Q2 consensus expectations for the S&P 500 index and new research reports on 16 major stocks, including Johnson & Johnson (JNJ), Advanced Micro Devices, Inc. (AMD), and Union Pacific Corp. (UNP). These research reports were selected from approximately 70 reports published by our analyst team today.

You can do it view all research reports today here >>>

Q2 Earnings Season Preview

Total revenue in Q2 for the S&P 500 index is expected to increase +2.3% from the previous quarter of the year to +9.8% higher earnings, with strong growth in the Energy sector offsetting declines in Finance and Tech sectors.

Excluding the strong contribution from the Energy sector that revenues in Q2 are expected to increase by +187.5%, total revenue for the rest of the S&P 500 index will be down -5% from the same period last year.

The strength of the Energy sector has also been a factor in the trend of cumulative changes, with positive changes in the Energy sector helping to offset estimates elsewhere.

In other words, the strength of the Energy sector helps cover up the weakness in most other sectors, resulting in a seemingly solid consolidated picture of the revisions. This trend played out for 2022 Q2 as well as throughout the year 2022.

For the full year 2022, the current expectation is for S&P 500 earnings to rise +9.1% to +9.4% higher earnings. Excluding the Energy sector, revenues in 2022 for the rest of the index will increase by only +3.7%.

In relation to the trend of changes, the cumulative estimates of revenues in 2022 are actually +3.4% since the beginning of the year. But it is the record of upward changes in the Energy sector that keeps the cumulative trend changes in positive territory. Excluding the positive changes in Energy, which have risen +72.7% since the beginning of the year, the 2022 cumulative revenue for the rest of the index has dropped -9.8% since the beginning of the year.

Consequently, it is misleading for market participants to say that revenue estimates have not yet dropped. It is likely that there will be more downward adjustments to the estimates if the bearish macroeconomic projection yields. But on a base-case outlook, earnings estimates adjusted less.

For more details on Q2 estimates and emerging expectations for the coming season, please see our weekly Earnings Trend report here >>> Will revenue estimates finally fall?

Featured Analyst Reports

Johnson and Johnson shares moderately outperformed the Zacks Large Cap Pharmaceuticals industry on a year-to-date basis ( +7.9% vs. +7.5%), with the company’s diversification making it relatively resilient amid macroeconomic turmoil. Its Pharma unit performs at levels above the market, supported by its blockbuster drugs, Darzalex and Stelara, and contributions from newer drugs, Erleada and Tremfya. MedTech unit sales recovered in Q1 and the company is focused on growing this business through new products.

However, Consumer unit sales are hurt by external supply constraints. J&J is making rapid progress on its pipeline and line extensions. Some important data readings are expected in 2022. Headwinds such as generic competition and pricing pressure will continue. Although J&J has taken significant steps to resolve its talc and opioid litigation, they continue to remain an overhang in stock.

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

AMD shares dropped -1.7% last year against Zacks Electronics -The Semiconductors industry dropped -3.5%, with the company benefiting from strong demand for its Ryzen and EPYC server processors, due to growing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries such as cloud, gaming and data centers. The growing influence of 7 nanometer (nm) products on the data center vertical, driven by work-from-home and online learning trends, is a major catalyst.

AMD has provided strong guidance in 2022 for revenues supported by steady growth across all businesses. Higher server and client processor revenue is likely to lead to successive increases. The Xilinx and Pensando acquisition will strengthen AMD’s data center business. Alliances with Amazon, Microsoft, Baidu and are boosting business prospects.

(You can do it read the full AMD research report here >>>)

Union Pacific shares fell -0.5% last year against Zacks Transportation -The railroad industry’s decline of -3.4%. Rising fuel costs as oil prices shifted north resulted in a 16% increase in operating costs in the March quarter. Costs are likely to be high in the June quarter as well. Detailed results will be released on Jul 21. The high debt/EBITDA ratio is another concern. Increasing the capex can also be bothersome.

However, the company’s efforts to reward its shareholders even in the current uncertain scenario are pleasing to us. The company’s dividend doubled in 2021. In May 2022, UNP increased its quarterly dividend by an additional 10%. The rail operator was also active in the face of the buyback. Management expects share repurchases in 2022 to be in line with 2021 levels of $ 7.3 billion. UNP’s strong free cash flow supports the ability to generate its shareholder -friendly activities. The increase in freight revenue as economic activity strengthens is an additional positive.

(You can do it read the full Union Pacific research report here >>>)

Other notable reports we now feature include Anheuser-Busch InBev SA/NV (BUD), and ServiceNow, Inc. (NOW).

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Past performance does not guarantee future results. The potential for losses is inherent in any investment. This material is provided for informational purposes only and does not constitute investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is given as to whether any investment is suitable for a particular investor. It should not be assumed that any investment in the securities, companies, sectors or markets defined and described will be profitable or will be profitable. All information is up to date and is subject to change without notice. Any views or opinions expressed may not reflect the views of the company as a whole. Zacks Investment Research is not engaged in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 balanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information on the performance numbers shown in this press release.

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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report

Johnson & Johnson (JNJ): Free Stock Analysis Report

Union Pacific Corporation (UNP): Free Stock Analysis Report

AnheuserBusch InBev SANV (BUD): Free Stock Analysis Report

ServiceNow, Inc. (NOW): Free Stock Analysis Report

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