Johnson & Johnson (JNJ), The Coca-Cola Company (KO), Goldman Sachs Group Inc (GS): Are These 3 Stocks a Buy After Earnings?

Page 1 of 2

Big-time earning reports earlier this week, but for the most part, we have seen very little movement. In this piece, I am looking at the top reports from Tuesday, with my takeaways, as I look for stocks to buy and to add to My CAPS picks.

Does Diagnostics Really Matter?

Johnson & Johnson (NYSE:JNJ)Johnson & Johnson (NYSE:JNJ) has traded mostly flat on the week after beating on both the top and bottom line. The company’s revenue grew 8.5% year-over-year and they increased EPS guidance to $5.43, a 15% year-over-year gain.

For a company with revenue of $68.5 billion, this growth is simply incredible, and it was led by global pharmaceutical sales growth. With the stock trading at 15.61 times earnings, I see no reason why investors would think it is too expensive. Therefore, I can’t find a reason why the stock would not be trading significantly higher.

Moreover, the initial headlines for the quarter indicate that weakness, or a lack of stock strength, might be in response to a struggling medical device business. However, it grew 9.6% in the quarter. Therefore, with Johnson & Johnson (NYSE:JNJ) growing significantly faster than peers Pfizer Inc. (NYSE:PFE), Eli Lilly & Co. (NYSE:LLY), etc. I think it is a clear buy!

Blame it on the Weather?

The Coca-Cola Company (NYSE:KO) traded lower by 2% after its report, and rightfully so. Not only did revenue miss expectations, but Europe’s unit case volume was lower by 4% year-over-year.

The Coca-Cola Company (NYSE:KO) has faced increased competition from beverage makers who have turned their focus to healthier alternatives, including flavored water. Rather than The Coca-Cola Company (NYSE:KO) admitting to this problem, the company blamed the weak quarter on weather! Since when does weather prevent people from drinking liquids?

Overall, I view The Coca-Cola Company (NYSE:KO)’s quarter as highly problematic. They have remained the top player in the beverage industry for decades, and it appears as though new players in the field are beginning to steal its share. Thus, I wouldn’t buy.

A Massive Beat, But a Lower Stock

In my opinion, Goldman Sachs Group Inc (NYSE:GS) produced the most impressive quarter of the day. Not only did they beat on the top-line, but with an EPS of $3.7, they beat earning expectations by $0.89, as earnings nearly doubled.

Of the company’s $8.61 billion in revenue, it saw investment banking revenue increase 29% to $1.55 billion; its underwriting revenue increased 45% to $1.07 billion; and trading revenue increased 12% year-over-year to $2.46 billion.

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

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

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

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!