Top Analyst Reports for Broadcom, Pfizer & AMD
Thursday, August 16, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Broadcom Inc. (AVGO), Pfizer Inc. (PFE) and Advanced Micro Devices, Inc. (AMD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry (+55.7% vs. +48.1%) as well as the broader S&P 500 index (+55.7% vs. +4.2%) over the past year. The company is benefiting from strong deployment of generative AI by hyperscalers, service providers and enterprises.
It expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom. Expanding portfolio with the launch of second-gen Wi-Fi 7 wireless connectivity chip is a catalyst.
Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year. Broadband revenues growth is expected in moderate to low-single-digit percent year over year.
(You can read the full research report on Broadcom here >>>)
Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-28.9% vs. +10.0%). The company’s top line is declining in 2023 due to steep declines in revenues from its COVID-19 products, Comirnaty vaccine and Paxlovid oral pill, on lower demand. Concerns remain about its long-term growth drivers beyond its COVID products due to competitive pressure.
Nevertheless, Pfizer boasts a diversified portfolio of innovative drugs and vaccines, including Ibrance and Prevnar. Pfizer is witnessing solid pipeline progress and is launching some key non-COVID products in 2023, which can drive long-term sales and profit growth.
Huge profits from its COVID products strengthened its cash position which is used being to make acquisitions, increase dividends, buy back shares and reduce debt.
(You can read the full research report on Pfizer here >>>)
AMD shares have modestly lagged the Zacks Electronics - Semiconductors industry this year (+66.2% vs. +72.2%), but they have been stellar performers otherwise. The company’s growing adoption of fourth-generation EPYC by the lights up prospects. Genoa adoption was strong in the reported quarter with deployments from the likes of Microsoft, AWS, Alibaba and Oracle.
Availability of Bergamo is crucial as a number of server providers like Dell, HPE, Lenovo, and Supermicro are set to launch their new Bergamo-based platforms in the third-quarter. AMD continues to benefit from acquisitions including Xilinx and Pensando, which has diversified its business.
However, stiff competition remains a concern. AMD’s second-quarter 2023 results suffered from weak data center revenues. The year-over-year decline was primarily attributed to lower third-generation EPYC processor sales due to soft enterprise demand and an elevated level of inventory at some customers.
(You can read the full research report on AMD here >>>)
Other noteworthy reports we are featuring today include The Charles Schwab Corporation (SCHW), Canadian National Railway Company (CNI) and D.R. Horton, Inc. (DHI).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Strong Demand for Networking Products Aids Broadcom (AVGO)
Pfizer's (PFE) New Products Can Drive Long Term Sales Growth
Robust Product Portfolio & Partnerships Aid AMD's Prospects
Featured Reports
Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns
Per the Zacks analyst, while Schwab's inorganic growth initiatives and other revenue diversification efforts will aid profits, it might lead to higher costs, thus hurting the bottom line to an extent.
Liquidity Aids Canadian National (CNI) Amid Weak EPS View
The Zacks analyst is impressed by Canadian National's rising current ratio. However, the downbeat EPS view for the current year is a concern
Cheniere Energy's (LNG) Gas Export Dominance Bodes Well
The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market but is concerned over the huge debt load of more than $23 billion.
Solid Production Aids First Solar (FSLR), Tariff Impact Woes
Per the Zacks analyst, growing Series 6 module production will strengthen First Solar's position in the U.S. solar market. Yet U.S. imposed import tariff on China's solar cells may hurt the stock.
Monolithic (MPWR) Rides on Automotive Vertical, AI Focus
Per the Zacks analyst, Monolithic is likely to gain from healthy demand trends in the Automotive vertical combined with management's focus on broadening the customer base for AI applications.
Expanding User Base, Content Portfolio Aids SiriusXM (SIRI)
Per the Zacks analyst, SiriusMX is benefiting from strength in subscriber base backed by a solid content portfolio and expanded podcast efforts.
Rising Premiums Aid Reinsurance Group (RGA), High Costs Hurt
Per the Zacks analyst, improving premiums should continue to aid Reinsurance Group's EMEA and Asia/Pacific segments. However, escalating expenses remain a concern for the company.
New Upgrades
Buyout Synergies & Diverse Offerings Aid D.R. Horton (DHI)
Per the Zacks analyst, D.R. Horton is gaining from solid acquisition strategies, higher homebuilding lots, lower cycle times and diverse product offerings across multiple brands and price points.
Gentex (GNTX) Rides on FDM Product Portfolio Growth
Soaring demand for Gentex's Full Display Mirrors (FDM) has made the Zacks analyst bullish on the stock. Gentex expects FDM volumes in 2023 to be at least 500,000 units higher than 2022.
Kohl's (KSS) Benefits From Solid Store & Digital Operations
Per the Zacks analyst, Kohl's store and digital growth efforts aid. It plans to open five more stores in 2023 and has digital efforts like enhancing site experience and curating assortment underway.
New Downgrades
Huge Debt Load, Rising Costs Hurt Equinor's (EQNR) Margins
The Zacks analyst is worried about Equinor's increasing debt load, which could lead to volatile earnings. Also, the company's rising operating expenses remain a concern.
Norfolk Southern (NSC) Reels Under Revenue & Volume Woes
The Zacks analyst is worried about the weakness pertaining to total revenues. Declining volumes represent another headwind.
Worsening Credit Quality, High Costs Hurt Cullen/Frost (CFR)
Per the Zacks analyst, mounting expenses and a concentrated commercial loan portfolio are major headwinds for Cullen/Frost. The deterioration of the company's credit quality is worrisome.
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Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Canadian National Railway Company (CNI) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
