Johnson & Johnson (JNJ): Intel Corporation (INTC)’s Gains Lead the Dow’s End-of-the-Week Rise

Page 1 of 2

Although we don’t believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes — just in case they’re material to our investing thesis.

Markets are ending the week in a good way today, as stocks have moved higher to end a strong past five days on Wall Street. The Dow Jones Industrial Average has picked up gains of more than 60 points as of 2:15 p.m. EDT, with most of the stocks on the blue-chip index moving higher. Intel Corporation (NASDAQ:INTC) has had a big hand in the Dow’s outperformance, leading the index into the green. Let’s catch up on what you need to know.

Intel Corporation (NASDAQ:INTC)

Intel’s upgrade

Intel Corporation (NASDAQ:INTC) shares are up around 3% after Jefferies upgraded the chipmaker from “hold” to “buy.” An analyst at the company cited Intel’s production of less power-consuming chips, which will help the company expand its reach into mobile and other high-growth areas. Intel has had little success breaking into those new markets so far, with the exception of the server area, where it has established a strong hold.

Still, at least revenue from the company’s server products is growing. Intel Corporation (NASDAQ:INTC) has struggled financially lately, but the company’s data center division — its second-largest by revenue — posted 3.7% sales growth over the first half of 2013. Until Intel can bolster its product portfolio by becoming a real force in the mobile industry, data center sales will need to pick up the slack of slumping PC chip sales, which lost 7% in revenue in that same time frame.

That slump has hit the company’s net margin hard: In the second quarter of this year net margin fell to 15.6% from 20.9% a year ago. The stock has still managed to grow a respectable 13% year to date, but Intel Corporation (NASDAQ:INTC) will have to keep looking for new routes for growth if it wants to please shareholders and justify Jefferies’ upgrade.

Johnson & Johnson (NYSE:JNJ) is not keeping up with its Dow peers today. Shares of the diversified health-care giant are down 0.% to rank among the Dow’s biggest laggards. The company announced today that it will recall one lot of its schizophrenia therapy Risperdal Consta, although J&J was quick to mention that any possible patient risk was low.

Recalls are never a great sign for any health care firm, and Johnson & Johnson (NYSE:JNJ) has had its share of them over the past few years. Nonetheless, for investors, this company has performed admirably and looks on pace to continue its run into the future.

The company’s star immunology blockbuster, Remicade, continues to grow in sales despite already raking in more than $3.2 billion in revenue over the first half of the year. That was a 7.5% gain from the year before, and Remicade has formed a solid cash foundation for J&J to rely on while newer, faster-growing drugs, such as cancer treatment Zytiga, move up the ranks. Zytiga was approved only a few years ago, but the drug is already on pace to hit blockbuster status with more than $1 billion in sales by the end of the year — and Zytiga’s revenue jumped by more than 70% year over year in 2013′s first half.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!