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Yahoo
21-07-2025
- Business
- Yahoo
Betting Big on Cancer: 3 Oncology Stocks Set to Surge in 2025
An updated edition of the June 10, 2025, article. The global cancer treatment market is experiencing rapid growth, driven by rising cancer incidence, aging population and increasing demand for safer, more effective therapies. Per the American Cancer Society, in the United States alone, over 2 million new cancer cases and 618,000 related deaths are projected for 2025. Breakthroughs in immunotherapy, targeted treatments, and personalized cancer vaccines are reshaping the oncology landscape. These next-generation therapies offer greater precision and improved outcomes, supporting strong market expansion. Major pharma companies — including Novartis NVS, AstraZeneca AZN, Johnson & Johnson JNJ, Pfizer PFE, AbbVie ABBV, Bristol Myers Squibb and Eli Lilly LLY — are investing heavily in cutting-edge approaches like antibody-drug conjugates (ADCs) and immuno-oncology agents. Meanwhile, smaller biotechs are driving innovation, making them attractive acquisition targets for larger players seeking to enhance their oncology pipelines. As scientific progress accelerates, the oncology market is poised for robust, long-term growth — offering compelling opportunities for investors. These factors highlight the huge potential of cancer-focused companies. With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you're looking to align your portfolio with this rising trend, now might be the time to consider stocks like J&J, Novartis and Allogene Therapeutics ALLO 3 Cancer Stocks in Focus J&J's Oncology segment comprises around 27% of its total revenues. Its oncology sales rose 22.3% on an operational basis in the second quarter of 2025 to $6.3 billion, driven by strong market growth and share gains of key products such as multiple myeloma treatment Darzalex and prostate cancer drug, Erleada. New cancer drugs, such as Carvykti, Tecvayli, Talvey and Rybrevant plus Lazcluze, contributed significantly to growth as they witnessed strong launches. On its second-quarter conference call, J&J stated that it expects its oncology sales to reach $50 billion by the end of the decade. J&J seems quite confident in the target, citing strong growth in its marketed cancer drugs and the potential of upcoming launches like TAR-200 in bladder cancer and the subcutaneous formulation of Rybrevant plus Lazcluze for advanced EGFR-mutated non-small cell lung cancer (NSCLC). TAR-200 is under priority review with the FDA for treating non-muscle invasive bladder cancer and is expected to be approved this year. The subcutaneous formulation of Rybrevant plus Lazcluze has been recommended for approval in the EU while it is under review in the United States. J&J's oncology pipeline has gained strong momentum in the last year and a half, with promising developments in colorectal and head and neck cancers. In this period, J&J had eight proof-of-concept readouts, which led the candidates to move to late-stage pivotal studies across the portfolio. J&J has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Novartis has a diverse oncology portfolio, including targeted therapies and immunotherapies. The FDA's approval of Kisqali, its CDK4/6 inhibitor for the first-line treatment of postmenopausal women with HR+/HER2 advanced or metastatic breast cancer, significantly boosted the company's oncology portfolio, with the drug now being one of the top growth drivers for the company. In particular, Kisqali has shown robust uptake in the metastatic breast cancer setting. The recent approval of a broader label for Kisqali in the United States and the EU should further fuel its sales. Kisqali recorded sales of $1.1 billion in the second quarter of 2025, up 64% year over year. Other new oncology drugs like Pluvicto (PSMA-positive metastatic castration-resistant prostate cancer) and Scemblix (chronic myeloid leukemia) also put up a stellar performance, setting the momentum for the coming years as well. Novartis' oncology sales rose 20% in constant currency terms to $4.3 billion in the second quarter of 2025. In 2024, Novartis acquired Mariana Oncology and Germany-based MorphoSys AG, which strengthened its oncology pipeline. This Zacks Rank #2 company is also investing in research to develop treatments for both common and rare cancers, focusing on precision medicine strategies. Allogene Therapeutics is focused on developing allogeneic CAR T therapies for treating cancer, especially hematologic indications with high unmet needs. This Zacks Rank #2 company has multiple pipeline candidates in the clinical stage of development, including CAR T cell product candidates — cemacabtagene ansegedleucel (cema-cel or formerly ALLO-501A) and ALLO-316 for cancer indications. Lead candidate, cema-cel, is being developed as a frontline treatment for patients with large B-cell lymphoma (LBCL). In this regard, the company has initiated the pivotal phase II ALPHA3 study to evaluate cema-cel in patients with first-line LBCL. ALLO-316, the company's first CAR T candidate for solid tumors, is being evaluated in the TRAVERSE study in adults with advanced or metastatic renal cell carcinoma. Data from the study has shown that the therapy-induced early anti-tumor activity with deepening responses over time, especially in heavily pre-treated patients with high CD70 expression. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
18-07-2025
- Business
- Globe and Mail
J&J Expects Oncology Sales of USD 50B by 2030: Can It Achieve the Goal?
Johnson & Johnson JNJ, on its second-quarter conference call, stated that it expects its oncology sales to reach $50 billion by the end of the decade. Oncology, at present, comprises around 27% of J&J's total revenues. Its oncology sales rose 22.3% on an operational basis in the second quarter to $6.3 billion, driven by strong market growth and share gains of key products such as multiple myeloma treatment Darzalex and prostate cancer drug, Erleada. New cancer drugs, such as Carvykti, Tecvayli, Talvey and Rybrevant, plus Lazcluze, contributed significantly to growth as they witnessed strong launches. Though the $50 billion target was well above consensus, J&J seems quite confident in the target, citing strong growth in its marketed cancer drugs and the potential of upcoming launches like TAR-200 in bladder cancer and the subcutaneous formulation of Rybrevant plus Lazcluze for advanced EGFR-mutated non-small cell lung cancer (NSCLC). TAR-200 is under priority review with the FDA for treating non-muscle invasive bladder cancer and is expected to be approved this year. The subcutaneous formulation of Rybrevant plus Lazcluze has been recommended for approval in the EU while it is under review in the United States. Meanwhile, J&J's oncology pipeline has gained strong momentum in the last year and a half, with promising developments in colorectal and head and neck cancers. In this period, J&J had eight proof-of-concept readouts, which led the candidates to move to late-stage pivotal studies across the portfolio. If these pipeline drugs are eventually approved, they can also boost JNJ's oncology sales. In the five years from 2019 to 2024, J&J's oncology sales have doubled from $10.7 billion in 2019 to $20.8 billion in 2024. To achieve the $50 billion target in the next 5-6 years, the company needs to more than double its sales from 2024 levels. Though quite optimistic, the target is not unachievable. Competition in the Oncology Space Other large players in the oncology space are Pfizer PFE, AstraZeneca AZN, Merck MRK and Bristol-Myers. Pfizer boasts a strong portfolio of approved cancer medicines like Xtandi, Lorbrena and the Braftovi-Mektovi combination. The addition of Seagen in 2023 also strengthened its position in oncology by adding four ADCs — Adcetris, Padcev, Tukysa and Tivdak. Pfizer also has a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics. For AstraZeneca, oncology sales now comprise around 41% of total revenues. AstraZeneca's strong oncology sales growth is being driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo). AstraZeneca is working on strengthening its oncology product portfolio through label expansions of existing products and progressing oncology pipeline candidates. Merck's key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for around 50% of Merck's pharmaceutical sales. Bristol-Myers' key cancer drug is PD-LI1inhibitor, Opdivo, which accounts for around 20% of its total revenues. JNJ's Price Performance, Valuation and Estimates J&J's shares have outperformed the industry year to date. The stock has risen 14.6% in the year-to-date period compared with an increase of 1.5% for the industry. Image Source: Zacks Investment Research From a valuation standpoint, J&J is reasonably priced. Going by the price/earnings ratio, the company's shares currently trade at 14.97 forward earnings, slightly lower than 15.04 for the industry. The stock is also trading below its five-year mean of 15.70. The Zacks Consensus Estimate for 2025 earnings has risen from $10.60 per share to $10.66 over the past 30 days, while that for 2026 has risen from $10.98 to $11.13 over the same timeframe. J&J has a Zacks Rank #2 (Buy) currently. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report
Yahoo
16-07-2025
- Business
- Yahoo
JNJ Begins Drug Sector Q2 Earnings With a Beat & Guidance Raise
Johnson & Johnson's JNJ second-quarter 2025 earnings came in at $2.77 per share, which beat the Zacks Consensus Estimate of $2.66. Earnings, however, declined 1.8% from the year-ago period. Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.29 per share, up 18.7% year over year. Sales of this drug and medical devices giant came in at $23.74 billion, which also beat the Zacks Consensus Estimate of $22.80 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Sales rose 5.8% from the year-ago quarter, reflecting an operational increase of 4.6% and a positive currency impact of 1.2%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 3.0% on an operational basis. Second-quarter sales in the domestic market rose 7.8% to $13.54 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 5.0% in the quarter. International sales rose 3.2% on a reported basis to $10.2 billion, reflecting an operational increase of 0.6% and a positive currency impact of 2.6%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 0.4% in the quarter. J&J's Innovative Medicines Unit Outperforms, MedTech Misses With the complete separation of the Consumer Health segment into a newly listed company called Kenvue KVUE in 2023, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. KVUE will report its second-quarter results in early August. J&J's Innovative Medicines segment sales rose 4.9% year over year to $15.2 billion, reflecting a 3.8% operational increase and a positive currency impact of 1.1%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 2.4%. Innovative Medicines sales beat the Zacks Consensus Estimate of $14.55 billion as well as our model estimate of $14.50 billion. Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment's growth. Xarelto and Simponi/Simponi Aria sales also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara and Zytiga. JNJ's Oncology Drugs' Performance Sales of blockbuster multiple myeloma medicine Darzalex rose 23.0% year over year to $3.54 billion in the quarter. Sales beat the Zacks Consensus Estimate of $3.45 billion and our model estimate of $3.44 billion. Imbruvica sales declined 4.5% to $735.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $697.0 million and our estimate of $694.8 million. Erleada generated sales of $908.0 million in the quarter, up 23.4% year over year. Erleada sales beat the Zacks Consensus Estimate of $853.0 million as well as our model estimate of $903.9 million. New drug Carvykti recorded sales of $439.0 million compared with $369 million in the previous new drug, Tecvayli, recorded sales of $166.0 million in the quarter, up 23.1% year over year, Sales of Talvey were $106 million, up 55.0% year over year. Rybrevant/Lazcluze sales were $179 million compared with $69 million in the year-ago quarter. Zytiga sales declined 11.6% to $145.0 million in the quarter due to generic competition. JNJ's Immunology Drugs' Performance Sales of the blockbuster psoriasis drug, Stelara, declined 42.7% to $1.65 billion in the quarterdue to the impact of biosimilar competition and Part D redesign. While U.S. sales of Stelara declined 41.9%, international sales declined 44.2% in the quarter. Stelara sales missed the Zacks Consensus Estimate as well as our model estimates of $1.88 billion. Several biosimilar versions of J&J's multi-billion-dollar immunology drug, Stelara, have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have already launched Stelara biosimilars this year. Tremfya recorded sales of $1.19 billion in the quarter, up 31.0% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.08 billion as well as our model estimate of $1.09 billion. Simponi/Simponi Aria sales rose 28.6% to $690.0 million. Sales of Remicade rose 15.9% in the quarter to $455.0 million. JNJ's Neuroscience, PAH and Other Drugs' Performance In neuroscience, Spravato recorded sales of $414.0 million, up 53.3% year over year. Caplyta, added from the Apil acquisition of Intra-Cellular Therapies, recorded sales of $211 million in the quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 5.9% to $992.0 million in the quarter. Pulmonary arterial hypertension (PAH) drug Uptravi recorded sales of $476.0 million, up 11.7% year over year. Another PAH drug, Opsumit, recorded sales of $582.0 million, up 6.4% year over year. Xarelto sales rose 5.6% in the quarter to $621.0 million. Prezista sales declined 9.4% to $396.0 million. How Did JNJ's MedTech Segment Perform in Q2? MedTech segment sales came in at $8.54 billion, up 7.3% from the year-ago period, including an operational increase of 6.1% and a positive currency impact of 1.2%. MedTech segment sales beat the Zacks Consensus Estimate of $8.25 billion as well as our model estimate of $8.31 billion. Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 4.1%. In the MedTech segment, over the past couple of quarters, gains from recent acquisitions of Shockwave and Abiomed, as well as continued uptake of new products, have been offset by continued headwinds in Asia Pacific, specifically in China and increased competitive pressure in U.S. electrophysiology for PFA ablation catheter. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. JNJ Ups 2025 Sales and EPS Guidance Range The company raised its sales expectations for 2025 by around $2.0 billion to reflect a strong operational performance coupled with currency tailwinds. The sales guidance was raised from a range of $91.0 billion-$91.8 billion to $93.2 billion-$93.4 billion. The sales range indicates growth in the range of 5.1%-5.6% versus the prior expectation of 2.6%-3.6%. Operational sales growth is expected in the range of 4.5%-5.0% (previously 3.3%-4.3%). Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 3.2%-3.7% (previously 2.0%-3.0%). The revenue figures exclude revenues from COVID-19 vaccine sales. The adjusted earnings per share guidance was raised from a range of $10.50-$10.70 to $10.80-$10.90. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 8.2%-9.2% (previously 5.2% to 7.2%). Our Take on JNJ's Q2 Results J&J kicked off the earnings season for the drug and biotech sector with earnings and sales beats. Despite the loss of exclusivity ('LOE') of Stelara, its Innovative Medicines unit once again outperformed expectations, with sales of all key drugs Darzalex, Erleada and Tremfya beating estimates. The new drugs also contributed significantly to sales. Stelara LOE hurt revenue growth by 1170 basis points in the second quarter. MedTech unit's sales also beat estimates. J&J raised its sales and EPS guidance for the year. J&J's shares rose more than 2% in pre-market trading on Wednesday in response to the earnings beat and guidance raise. So far this year, J&J's stock has risen 9.1% compared with an increase of 1.9% for the industry. Image Source: Zacks Investment Research J&J's Innovative Medicine unit is showing a growth trend. In 2025, J&J expects growth in the Innovative Medicine segment in the face of Stelara biosimilar entrants to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant. J&J considers 2025 to be a 'catalyst year,' positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half of the year than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline. However, the softness in the MedTech unit, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. It remains to be seen how the company navigates them. The legal battle surrounding its talc lawsuits is a persistent headwind. J&J's Zacks Rank J&J currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-06-2025
- Business
- Yahoo
JNJ vs. MRK: Which Healthcare Titan Offers Better Growth Prospects?
Both Johnson & Johnson JNJ and Merck MRK are leading U.S. healthcare conglomerates — blue-chip pharmaceutical companies with massive R&D budgets and blockbuster drug portfolios. Both companies have a strong presence in oncology, immunology and neuroscience areas. Other than that, J&J also has drugs for cardiovascular and metabolic diseases, pulmonary arterial hypertension (PAH) and infectious diseases, along with a strong presence in the medical devices segment. On the other hand, Merck boasts a strong presence in vaccines, virology and hospital acute care. Both firms face looming patent expirations and headwinds from Medicare Part D redesign. But which one is a better investment option today? Let's take a closer look at their fundamentals, growth prospects and challenges to make an informed choice. J&J's biggest strength is its diversified business model, which helps it to withstand economic cycles more effectively. It operates through more than 275 subsidiaries. Its Innovative Medicine unit is showing a growth trend. The segment's sales rose 4.4% in the first quarter of 2025 on an organic basis despite the loss of exclusivity (LOE) for its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. In 2025, J&J expects growth in the Innovative Medicine segment in the face of Stelara biosimilar entrants to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant. J&J also has an interesting R&D pipeline that can generate innovative products and further drive its growth. J&J has been on an acquisition spree lately, with the latest acquisition of Intra-Cellular Therapies strengthening its presence in the neurological and psychiatric drug market. Sales in J&J's MedTech business are facing continued headwinds in the Asia Pacific, specifically in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program and the anticorruption campaign. J&J does not expect any improvement in its business in the Asia Pacific region, specifically in China, in 2025. Competitive pressure is also hurting sales growth in some MedTech businesses. The company lost U.S. patent exclusivity of its blockbuster drug, Stelara, in 2025. The launch of generics is expected to significantly erode the drug's sales, hurting J&J's sales and profits in 2025. J&J also expects a negative impact of approximately $2 billion in sales due to the Medicare Part D redesign in 2025. The Part D redesign is expected to mainly hurt sales of drugs like Stelara, Tremfya, Erleada and PAH drugs J&J faces more than 62,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of its talc-based Johnson's Baby Powder. In April, a bankruptcy court in Texas rejected J&J's proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J will go back to the traditional tort system to fight the lawsuits individually with its bankruptcy strategy to settle the lawsuits failing for the third time. J&J's cash and cash equivalents were $38.8 billion at the end of March 2025 against long-term debt of $38.4 billion, resulting in a debt-to-capital ratio of 0.33, much lower than the industry's average of 0.42. Merck boasts more than six blockbuster drugs in its portfolio, with Keytruda being the key top-line driver. Keytruda has played an instrumental role in driving Merck's steady revenue growth in the past few years. Keytruda's sales are gaining from rapid uptake across earlier-stage indications, mainly early-stage non-small cell lung cancer. Continued strong momentum in metastatic indications is also boosting sales growth. The company expects continued growth from Keytruda, particularly in early lung cancer. Merck is also developing a subcutaneous formulation of Keytruda that can extend its patent life. Merck is working on different strategies to drive Keytruda's long-term growth. Merck has been making meaningful regulatory and pipeline progress across areas like oncology (mainly Keytruda), vaccines and infectious diseases while executing strategic business moves. Merck's phase III pipeline has almost tripled since 2021, supported by in-house pipeline progress as well as the addition of candidates through M&A deals. Merck's new products, Capvaxive and Winrevair, are witnessing strong launches and have the potential to generate significant revenues over the long term. Earlier this week, the FDA approved its respiratory syncytial virus (RSV) vaccine, Enflonsia (clesrovimab). However, sales of Gardasil, which is Merck's second-largest product, are declining due to a weak performance in China, which resulted from sluggish demand trends amid an economic slowdown. Merck is also seeing weakness in the diabetes franchise and the generic erosion of some drugs. Merck is heavily reliant on Keytruda. Though Keytruda may be Merck's biggest strength and a solid reason to own the stock, it can also be argued that the company is excessively dependent on the drug and it should look for ways to diversify its product lineup. There are rising concerns about the firm's ability to grow its non-oncology business ahead of the upcoming loss of exclusivity of Keytruda in 2028. Also, competitive pressure might increase for Keytruda in the near future. Medicare Part D redesign is expected to hurt sales of diabetes drugs, Januvia/Janumet, in 2025. At the end of March 2025, its cash and cash equivalents were $9.2 billion against long-term debt of $33.5 billion, resulting in a debt-to-capital ratio of 0.41, which is slightly lower than the industry average of 0.42. The Zacks Consensus Estimate for J&J's 2025 sales and EPS implies a year-over-year increase of 2.7% and 6.2%, respectively. The Zacks Consensus Estimate for 2025 earnings has risen from $10.54 per share to $10.60 over the past 60 days, while that for 2026 has declined from $11.02 to $10.98 over the same timeframe. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MRK's 2025 sales and EPS implies a year-over-year increase of 0.9% and 16.6%, respectively. EPS estimates for both 2025 and 2026 have declined over the past 60 days. Image Source: Zacks Investment Research Year to date, J&J's stock has risen 10% compared with the industry's increase of 0.6%. Merck's stock has declined 17.5%. Image Source: Zacks Investment Research MRK looks more attractive than J&J from a valuation standpoint. Going by the price/earnings ratio, J&J's shares currently trade at 14.53 forward earnings, slightly lower than 15.23 for the industry and its 5-year mean of 15.77. Merck's shares currently trade at 8.76 forward earnings, significantly lower than the industry as well as the stock's 5-year mean of 12.88. Image Source: Zacks Investment Research J&J's dividend yield is 3.32%, while Merck's is slightly higher at 3.98%. Image Source: Zacks Investment Research Both Merck & J&J have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Merck has one of the world's best-selling drugs in its portfolio, generating billions of dollars in revenues. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then. However, the company's problems are too many at present, including persistent challenges for Gardasil in China, potential competition for Keytruda and rising competitive and generic pressure on some drugs. All these factors have raised doubts about Merck's ability to navigate the Keytruda loss of exclusivity period successfully. Consistently declining estimates also reflect analysts' pessimistic outlook for the stock. On the other hand, J&J has shown steady revenue and EPS growth for years. J&J considers 2025 to be a 'catalyst year,' positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half of 2025 than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J expects growth to accelerate from 2026 onward. Despite headwinds like softness in the MedTech unit, the legal battle surrounding its talc lawsuits, Stelara patent cliff and the potential impact of Part D redesign, J&J seems just one step ahead of Merck due to better prospects for sales and profit growth amid the various challenges. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
15-04-2025
- Business
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Johnson & Johnson Q1 Earnings: Strong Cancer Drug Sales, Boosts Quarterly Dividend, Anticipates Negative Currency Impact For 2025 Profit
Johnson & Johnson (NYSE:JNJ), on Tuesday, reported a first-quarter 2025 adjusted EPS of $2.77, up 2.2% year over year, beating the consensus of $2.60. The pharmaceutical giant reported sales of $21.89 billion, up 2.4% year over year and beating the consensus of $21.58 billion. Operational growth was 4.2%, and adjusted operational growth was 3.3%. Innovative Medicine sales increased 2.3% or 4.2 operationally to $13.90 billion. Also Read: Growth was driven by Darzalex (daratumumab), Carvykti (ciltacabtagene autoleucel), Erleada (apalutamide), Rybrevant/Lazcluze in oncology, Tremfya (guselkumab) and Simponi/Simponi Aria in immunology, Spravato (esketamine) Neuroscience, and Xarelto in cardiovascular. Growth was partially offset by an approximate (810) basis points impact from Stelara (ustekinumab) in immunology. Cancer sales increased to $5.68 billion, up 17.9% (+20.4 operational). Immunology sales fell to $3.71 billion, down 12.7% (down 10.9% operational). Stelara sales fell 33.7% to $1.63 billion. Darzalex sales rose 20.3% to $3.24 billion. The company's cancer cell therapy, Carvykti, generated sales of $369 million. MedTech sales increased 2.5% to 8.02 billion, driven primarily by Abiomed in cardiovascular and wound closure products in general surgery. Growth was partially offset by Spine, Sports & Other in Orthopaedics. Dividend: Johnson & Johnson also announced an increase in its quarterly dividend from $1.24 to $1.30 per share. The 4.8% increased dividend is payable on June 10, with a record date of May 27. Guidance: Johnson & Johnson expects 2025 sales of $91 billion-$91.8 billion versus prior guidance of $90.9 billion–$91.7 billion and consensus of $90.62 billion The Medtech giant expects 2025 adjusted operational EPS of $10.50-$10.70, compared to prior guidance of $10.75–$10.95. It maintained the adjusted EPS outlook of $10.50-$10.70 versus the consensus of $10.50. Adjusted operational EPS excluded the impact of translational currency, which means JNJ anticipates a hit to the bottomline from the impact currency. The company anticipates second-half operational sales growth higher than the first half of 2025. Johnson & Johnson said the increase in full-year 2025 operational sales guidance reflects the addition of CAPLYTA following the completion of the Intra-Cellular Therapies acquisition. Including tariff costs, dilution from the Intra-Cellular Therapies acquisition, and updated foreign exchange, the company maintains a full-year 2025 adjusted reported EPS outlook of 6.2% growth at the mid-point. In March, Johnson & Johnson announced its plans to invest more than $55 billion in the U.S. over the next four years. Price Action: JNJ stock is down 0.88% at $153.01 during the premarket session at the last check Tuesday. Read Next:Photo via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? JOHNSON & JOHNSON (JNJ): Free Stock Analysis Report This article Johnson & Johnson Q1 Earnings: Strong Cancer Drug Sales, Boosts Quarterly Dividend, Anticipates Negative Currency Impact For 2025 Profit originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
