(Source: Business Wire)
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, Inc. (NYSE: JNJ), Boston Properties, Inc. (NYSE: BXP), Matsushita Electric Industrial Co., Ltd. (NYSE: MC), Deckers Outdoor Corp. (Nasdaq: DECK) and Mechel Steel Group (NYSE: MTL).
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Here are highlights from Thursday's Analyst Blog:
J&J Fairly Earns Its Premium
A number of Johnson & Johnson, Inc. (NYSE: JNJ) products are expected to experience declining sales, slowing revenue growth in the next few years relative to 2007. Incremental earnings growth will come in the form of improving margins and share buybacks. Investment in J&J offers consistency, reliability, and perhaps safety in this volatile market. We consider the name a core holding.
Johnson & Johnson currently trades at 15.6x our 2008 EPS estimate of $4.52, somewhat richer than the large-cap pharmaceutical industry average of 13.6x. 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 stock worth considering as a long-term investment and a core large-cap pharmaceutical holding. We believe the stock is correctly priced, and should post in-line returns over the next six-to-nine months.
Boston Ppys Starts to Recover
Shares of Boston Properties, Inc. (NYSE: BXP) somewhat recovered yesterday after a 13% decline on Monday. BXP has significant exposure to Lehman Brothers, who lease about 2% of the company's office portfolio.
With the meltdown in the financial services sector and more layoffs expected, office rents should begin to drop in NYC after climbing for years. Despite the grim outlook, we still rate BXP a Hold. The company has a solid balance sheet with low debt and plenty of capacity to be active in discounted acquisitions and development going forward.
Matsushita Outlook Softens
Matsushita Electric Industrial Co., Ltd. (NYSE: MC) has established itself as a global company that uses leading-edge technology to manufacture electronic and electrical products, systems, and components.
In emerging markets, Matsushita aims to increase sales of consumer products by 200 billion yen through increased focus on priority countries such as Brazil, Russia, India, and China (BRIC) and Vietnam. Matsushita also has a healthy balance sheet, with a net cash position of $8,636.6 million or $4.12 per ADS in the first quarter of fiscal 2009.
