Johnson & Johnson (JNJ) continues its impressive run. Morgan Stanley (MS) and PepsiCo. (PEP) beat expectations. Here are this week’s three stocks to watch:
Johnson & Johnson (JNJ)
Over the last three months, JNJ has been on an impressive run, climbing over 13% and reaching several all-time highs. Year to date, the stock is up 7%, outperforming the S&P 500’s 1.7% rise.
Johnson & Johnson’s earnings report is due Tuesday after the market closes, but it’s expected to be positive. Estimates of earnings per share annually and for the quarter show an increase of 1.8% and 1.2% respectively. The positive projections indicate that JNJ’s run won’t be slowing down anytime soon.
Analysts are expecting to see earnings of $1.66 per share, and revenue of $17.47 billion. That would equate to a 6.4% increase year-over-year on earnings per share, and a 0.6% increase in revenue.
Morgan Stanley (MS)
Morgan Stanley’s profit beat analyst estimates, a feat in the banking sector. Income from growth interest offset losses in trading and investment banking.
The bank posted a profit of 55 cents per share. Analysts were looking for earnings per share of 47 cents.
Net income was down 53% from the previous year to $1.13 billion. Revenue was also down 21%, at $7.8 billion, which was in line with projections.
Trading revenue was down 43%, but the bank expects that to improve later in the year. Morgan Stanley has a number of deals and IPOs in the works.
Cost cuts helped the bank beat quarterly profit estimates. The stock was up 2.48% at $26.40 in premarket trading.
PepsiCo (PEP)
Pepsi, the beverage giant, released its earnings report on Monday, topping earnings estimates. Year over year, revenue declined 3%, which was in line with Wall Street projections.
Not accounting for the impact of a stronger dollar, sales were up 3.5%. Pepsi posted earnings per share of 89 cents, beating estimates of 81 cents.
The company maintains its EPS guidance and continues to see earnings per share of $2.66 this year.
Pepsi is anticipating $1 billion in cost savings in 2016 as part of its goal to reach $5 billion in cost savings by 2019.
Shares for the company were up 0.3% in premarket trading.
