Johnson & Johnson Rated Top Buy Today Following $1B Vaccine Deal With Government

Stock markets traded higher as investors parsed through several positive quarterly results. There is also optimism on the relief package that is making progress which could provide a much-needed boost to the US economy. Meanwhile, the employment report by ADP posted a grim picture as the net payroll addition by private players significantly missed the estimated figures, coming in at 167k versus 1 million expected. In addition, a commitment of $1 billion to Johnson & Johnson JNJ to manufacture a coronavirus vaccine may be helping markets stay in the green today. Our deep learning algorithms have parsed through the data and used Artificial Intelligence (“AI”) to help you spot the Top Buys for today.

Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.

Formfactor Inc (FORM)  

First on the list today is Formfactor Inc, a company that designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, and thermal sub-systems. It operates in two segments, Probe Cards, and Systems. Our AI technology has identified factor scores of rated C in Technical, B in Growth, A in Momentum Volatility, and B in Quality Value for the stock that is up 13.39% for the year. As or the financials, revenue grew by 8.2% in the last fiscal year to $589.46M, growing by 16.3% from $548.44M three years ago. Operating Income grew by 47.52% to $50.63M in the last fiscal year and by 59.34% from $46.87M three years ago. EPS grew at a higher rate of 58.27% in the last fiscal year to $0.51 in the last year; the growing by 46.76% from $0.55 three years ago. ROE figures fell to 6.44% in the last year from 9.52% three years ago. Forward 12M revenue is expected to clock a growth rate of 3.25% over the next 12 months. The stock is trading with a Forward 12M P/E of 22.62.

Recommended For You

General Dynamics Corp (GD)

General Dynamics Corp is next on the list, the company operates as an aerospace and defense company worldwide. It operates through five segments: Aerospace, Combat Systems, Information Technology, Mission Systems, and Marine Systems. Our deep learning algorithms have given factor scores of A in Technical, C in Growth, A in Momentum Volatility, and B in Quality Value. The stock is down 17.48% for the year. As for the financials, revenue grew by 24.45% over the last three fiscal years to $39350.0M in the last fiscal year from $30973.0M three years ago. Operating Income grew to $4664.0M in the last fiscal year compared to $4177.0M three years ago at a growth rate of 5.1%. EPS grew at 17.87% in three years from $9.56 to $11.98 in the last fiscal year. Finally, ROE inched higher towards 27.53% in the last year compared to 26.79% three years ago. Revenue growth is expected to clock a growth rate of 2.34% in the next 12 months and the stock is trading at a reasonable forward 12M P/E of 12.45.

Johnson & Johnson (JNJ)

Speaking of recent $1 billion contracts, our next company on the Top Buys is Johnson & Johnson. Johnson & Johnson researches and develops, manufactures, and sells various products in the health care field worldwide. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices. Our AI has given factor scores of A in Technical, B in Growth, A in Momentum Volatility, and B in Quality Value and the stock is up only by 0.86% for the year, giving investors a good entry point for investment. As for the financials, revenue grew by 5.3% over the last three fiscal years to $82059.0M in the last fiscal year from $76450.0M three years ago. During the same time frame, operating Income grew by 6.86% to $21070.0M in the last fiscal year from $18897.0M three years ago. EPS grew marginally in the last fiscal year by 0.95% to $5.63, growing at a higher rate of 1109.28% from $0.47 three years ago. ROE also improved considerably to 25.36% in the last year when compared to 1.99% three years ago. Revenue is projected to grow by 4.71% in the next 12 months. The stock trades with a forward 12M P/E of 17.58.

Telephone & Data Systems Inc (TDS)

Telephone & Data Systems Inc TDS is a telecommunications company that provides communications services in the United States. It operates through three segments: U.S. Cellular, Wireline, and Cable. Our AI has given factor scores of C in Technical, A in Growth, A in Momentum Volatility, and B in Quality Value to the stock that has lost 22.31% for the year. Looking at the financials, Revenue grew by 0.08% to $5176.0M in the last fiscal year, compared to 2.7% over the last three fiscal years from $5044.0M. Operating Income grew by 19.08% over the last three fiscal years from $152.0M to $190.0M in the last fiscal year. EPS increased by 8.33% in the last year to $1.03, lower compared to $1.37 three years ago. ROE continues to remain low at 2.74% in the last year dropping from 3.26% three years ago. The stock is trading with a Forward 12M P/E of 24.79.

Westlake Chemical Partners LP (WLKP)

And finally, we have Westlake Chemical Partners LP WLK . Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane into ethylene. The stock is down 22.83% for the year. Our deep learning algorithms have assigned factor scores of rated A in Technical, C in Growth, A in Momentum Volatility, and A in Quality Value. As far as financials are concerned, revenue dropped from $1172.98M three years ago to $1091.87M in the last fiscal year. Operating Income grew by 3.9% in the last fiscal year to $350.15M in the last fiscal year, still lower than $374.41M three years ago.  EPS grew by 2.46% to $1.77 in the last fiscal year compared to a rate of 9.44% over the three years from $1.66. ROE didn’t change much and was at 35.3% in the last year when compared to 36.78% three years ago. Forward 12M revenue is expected to grow by 13.66% over the next 12 months and the stock trades with a forward 12M P/E of 10.05, indicating that the valuation is attractive.

Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.

Comments are closed.