BofA, J&J, Coke Earnings on Tap

Health-care major  Johnson & Johnson (JNJ) reports its latest earnings Tuesday before the bell. Wall Street consensus estimates forecast that the firm will post earnings of $1.21 per share, compared with $1.23 a year ago.

J&J has beaten analyst estimates in three of the last four quarters. Morningstar analyst Damien Conover upped his fair value estimate for the stock from $75 per share to $77 in mid-July, citing the improved outlook for the pharmaceutical division. "Gaining four key approvals in 2011 already, J&J has improved its growth outlook for the drug division,"  Conover wrote.

Over the trailing three months, J&J shares have lost about 5%, slightly less than the major market indexes, and trade in 4-star territory.

Financial-services giant  Bank of America (BAC) also posts its third-quarter earnings Tuesday morning. Wall Street analysts, on average, see the firm returning to a profit after posting losses for three out of the past four quarters. Consensus estimates forecast earnings per share of $0.20.

Bank of America has been in the news of late with billionaire Warren Buffett  picking up a stake in the firm even as its capital position remains under intense scrutiny.

BofA shares have lost over 50% this year and are now trading in 4-star territory compared with Morningstar's fair value estimate of $10 a share. However, Morningstar places a "very high" fair value uncertainty rating on the stock, as several major questions about the company remain unanswered. "Earnings must improve substantially in order for the bank to achieve escape velocity from the weight of billions of dollars in legacy mortgage-related liabilities threatening to reduce capital to unacceptable levels," Morningstar analyst Jim Sinegal  wrote in August.

 Coca-Cola (KO) is due to report third-quarter earnings before the bell Tuesday. The company beat estimates by a cent the previous quarter, and investors hope the firm will top predictions once again. Wall Street analysts are expecting earnings of $1.02 a share compared to $0.88 a year ago.

While the past few quarters have been good for Coke overseas in the emerging markets, investors will hope for better sales from the U.S., its home country, which remains its largest market.

After reporting increased profit for three straight quarters and revenue growth for the last four quarters, Coke's stock has seen a rebound over the last year, and Morningstar analysts feel the shares are now fairly valued.

Rouhan Sharma contributed to this report.