4 Stocks RAISING Guidance This Quarter

NYSE: JNJ | Johnson & Johnson News, Ratings, and Charts

JNJ – Most companies have been pulling guidance this quarter due to increased uncertainty. So, it’s worth paying attention to the few companies like Micron (MU), Taiwan Semiconductor (TSM), ConAgra (CAG), and Johnson & Johnson (JNJ) which are raising guidance.

Due to the challenging economic environment caused by the coronavirus pandemic, many companies have been pulling guidance due to the uncertain outlook.  However, this isn’t true for all companies.

Earnings season is upon us and we’ve seen some companies report and actually raise their guidance for the upcoming quarter and/or the full year.

Guidance is important because stock prices often rise on increased guidance, as it means that the company has higher expectations in their earnings and/or sales, which in turn can catapult their stock price higher.

Here are four stocks that recently reported earnings and raised their guidance:

Micron (MU)

MU had a particularly strong earnings report on July 18th. The company shipped more chips than expected, and the price per chip was higher than expected. MU also said that orders for the next quarter were “very strong”. 

As a result, MU increased its earnings forecast for the fourth quarter by 20%, and revenue by 10%. This was a sharp contrast from analysts who were expecting a decline in earnings due to lower demand. 

The POWR Ratings is constructive on MU as well as it’s rated a Buy. It has an “A” for Trade Grade and Industry Rank. It’s ranked #31 out of 86 stocks in the Semiconductor & Wireless Chips group.

Taiwan Semiconductor (TSM)

TSM is the world’s largest chip foundry. The company reported earnings on July 16th and beat consensus expectations in the current quarter and guided higher for the next quarter. It’s clear from MU and TSM that demand for computer chips is strong as the coronavirus and “work from home” has led to many companies making hefty investments in their cloud infrastructure. Another factor is the worldwide spending on upgrading mobile networks to the 5G standard.

For its next quarter, TSM forecast revenue between $11.2 billion and $11.5 billion which was above expectations of $10.7 billion. TSM’s stock has been a winner with a 15% gain so far this month, as it’s carving out fresh, all-time highs. It’s also up 50% from its March-lows and 12% higher than its pre-coronavirus peak.

The POWR Ratings are also consistent with this strong outlook, as it has a Strong Buy Rating. It has an “A” in all categories including Trade Grade, Buy & Hold Grade, Peer Grade, and Industry Rank. Among semiconductor stocks, it’s ranked #1 out of 86.

Johnson & Johnson (JNJ)

On July 16th, JNJ released earnings in which they beat sales and earnings forecast, and it upgraded its outlook for the remainder of the year.  Despite the coronavirus leading to a reduction in many people getting medical care, JNJ’s medical devices and pharmaceuticals business continued to grow. 

For the next quarter, JNJ raised its earnings forecast to $7.75 to $7.95 per share which was above its previous guidance and analysts’ expectations. It also increased its revenue forecast to $79.9 billion to $81.4 billion.

JNJ is rated a Strong Buy by POWR Ratings. It has an “A” in all categories including Trade Grade, Buy & Hold Grade, Industry Rank, and Peer Grade. Among the Medical – Pharmaceuticals group, it’s ranked #1 out of 213.

Conagra (CAG)

Another sector that has benefited from the coronavirus is food stocks which are seeing increased demand and more pricing power as more people are preparing food at home. CAG is 90% higher from its March lows and is now just 10% off it’s all-time highs set in 2017.

Its strong performance was also reflected in its June 30th earnings release as the company increased profit by 108% on a year over year basis. Earnings and revenue also came in above expectations. CAG also lifted its forecast for earnings to between $2.66 and $2.76 which was above its previous forecast and analysts’ consensus of $2.50 per share.  

CAG’s POWR Ratings are also consistent with these positive developments, as it has a Strong Buy rating. It has an “A” for Trade Grade, Buy & Hold Grade, and Peer Grade with a “B” for Industry Rank. Among Foodmakers, CAG is ranked #6 out of 56. 

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

Newly REVISED 2020 Stock Market Outlook

7 “Safe-Haven” Dividend Stocks for Turbulent Times

 


JNJ shares were trading at $149.67 per share on Monday afternoon, up $0.32 (+0.21%). Year-to-date, JNJ has gained 3.98%, versus a 1.82% rise in the benchmark S&P 500 index during the same period.


About the Author: Jaimini Desai


Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
JNJGet RatingGet RatingGet Rating
TSMGet RatingGet RatingGet Rating
MUGet RatingGet RatingGet Rating
CAGGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Johnson & Johnson (JNJ) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All JNJ News