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
Comments
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

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

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!