Investing

Earnings Previews: American Express, GE, Johnson & Johnson, 3M

GE stock trades at 48.3 times expected 2021 EPS, 24.5 times estimated 2022 earnings of $4.00 and 17.3 times estimated 2023 earnings of $5.69 per share. The stock’s 52-week range is $85.12 to $116.17 (split-adjusted), and GE pays an annual dividend of $0.32 (yield of 0.33%). Total shareholder return for the past 12 months was 11.3%.

Johnson & Johnson

Over the past 12 months, pharmaceuticals giant and Dow component Johnson & Johnson (NYSE: JNJ) has added about 4.3% to its share price. After announcing a planned spinoff of its consumer health division in mid-November, shares dropped 5%, before jumping by 11.6% earlier this month. Half that gain has been lost in the past two weeks.

Of 18 brokerages covering the company, nine have Buy or Strong Buy ratings and the rest rate the shares at Hold. At a share price of around $165.10, the upside potential based on a median price target is 9%. At the high target of $215, the upside potential is 30%.

Fourth-quarter revenue is forecast at $25.29 billion, up 8.4% sequentially and up 12.5% year over year. Adjusted EPS are expected to come in at $2.12, down 18.6% sequentially but up 14% year over year. For full fiscal 2021, analysts expect EPS of $9.79, up nearly 22%, on sales of $94.31 billion, up 14.2%.

J&J shares trade at 16.9 times expected 2021 EPS, 16.1 times estimated 2022 earnings of $10.33 and 15.1 times estimated 2023 earnings of $10.96 per share. The stock’s 52-week range is $151.47 to $179.92. The company pays an annual dividend of $4.24 (yield of 2.55%). Total shareholder return for the past year was 5.2%.

3M

Another Dow component, 3M Co. (NYSE: MMM) is set to report fourth-quarter results. Over the past 12 months, the shares have increased by about 5.9% but since early June, shares are down more than 14%. 3M was among the Dogs of the Dow for 2022, one of 10 Dow stocks paying the highest dividend. Until Thursday, the stock traded higher by about 0.5% this year. Then shares tumbled by 2.75% and the stock closed down about 2.3% for the year so far.

Analyst sentiment is mixed, with 13 of 21 brokerages putting a Hold rating on the shares and only three with a Buy rating. At a per-share price of around $173.40, the implied gain based on a median price target of $187 is 7.8%. At the high target of $237, upside potential is 37.7%.

The consensus revenue estimate for the fourth quarter is $8.58 billion, down 4.1% sequentially and flat year over year. Adjusted EPS are forecast at $2.02, a sequential decline of 17.5% and a decrease of 15.1% year over year. For full fiscal 2021, analysts are looking for EPS to rise by 12.3% to $9.81 on a revenue increase of 9.8% to $35.34 billion.

3M stock trades at 17.7 times expected 2021 EPS, 16.8 times estimated 2022 earnings of $10.35 and 15.7 times estimated 2023 earnings of $11.05 per share. The stock’s 52-week range is $167.24 to $208.95, and 3M pays an annual dividend of $5.92 (yield of 3.32%). Total shareholder return for the past 12 months was 4.9%.

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