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Top Analyst Reports for Home Depot, AbbVie & Broadcom

Sheraz Mian
·6 mins read

Thursday, August 13, 2020

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 The Home Depot (HD), AbbVie (ABBV) and Broadcom (AVGO). 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 >>>

Home Depot shares have modestly outperformed the Zacks Retail Building Products industry year to date (+28.9% vs. +28.5%). The Zacks analyst believes that Home Depot’s interconnected retail strategy and underlying technology infrastructure have been more relevant amid the coronavirus crisis, delivering record web traffic for weeks without disruption.

The company quickly adapted to consumer needs providing contactless curbside pickup and other fulfillment services, adhering to the safety protocols. This helped boost comps performance across stores.

However, the bottom-line results reflected the impacts of higher costs to steer through the environment, particularly enhanced benefits to associates. Moreover, the company suspended its previously outlined guidance for fiscal 2020, citing the unprecedented impacts of the pandemic.

(You can read the full research report on Home Depot here >>>)

Shares of AbbVie have gained +1.7% over the past six months against the Zacks Large-Cap Pharmaceuticals industry’s rise of +1.6%. The Zacks analyst believes that sales erosion due to direct biosimilar competition to Humira in international markets is a big headwind. Also, the decline in HCV drug Mavyret’s sales is a concern.

AbbVie beat Q2 estimates for earnings and sales. AbbVie’s key drug, Humira continues to see strong demand trends in the United States. AbbVie has been successful in expanding labels of its cancer drugs, Imbruvica and Venclexta. It has an impressive late-stage pipeline.

It gained approvals for two new drugs with significant potential, Skyrizi and Rinvoq, in 2019. Both are off to a strong start. Allergan’s acquisition has diversified AbbVie’s revenue base into new therapeutic areas, enhancing its long-term growth potential.

(You can read the full research report on AbbVie here >>>)

Broadcom shares have gained +25.2% over the past three months against the Zacks Electronics - Semiconductors industry’s rise of +32.3%. The Zacks analyst believes that Broadcom is expected to benefit from robust adoption of Wi-Fi 6 in access gateway, and solid uptick of DSL and PON products.

Further, synergies from acquisitions of CA and Symantec’s enterprise security business are anticipated to bolster the company’s presence in infrastructure software vertical. It is also well poised to address the needs of rapidly growing technologies like IoT and 5G, backed by an expanding product portfolio.

However, increasing lead times remains an overhang. The company estimates semiconductor revenues in wireless domain to decline in fiscal third quarter as its “large North American mobile phone customer”, likely indicating Apple, delays ramp of next-generation smartphone. Also, a highly leveraged balance sheet adds to the woes.

(You can read the full research report on Broadcom here >>>)

Other noteworthy reports we are featuring today include QUALCOMM (QCOM), 3M (MMM) and Morgan Stanley (MS).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Sheraz Mian

Director of Research

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

Home Depot (HD) Gains from Digital Business Amid Pandemic

AbbVie (ABBV) U.S. Humira Demand Solid, Skyrizi, Rinvoq Shine

Broadcom (AVGO) Banks on Wireless Products & Acquisitions

Featured Reports

Qualcomm (QCOM) Gains from 5G Investments Amid Competition

Per the Zacks Analyst, with the rollout of 5G, Qualcomm is positioned to benefit from the investments toward building a licensing program in mobile.

Solid Product Offerings and Cost-Saving Moves to Aid 3M (MMM)

Per the Zacks analyst, 3M (MMM) is poised to benefit from solid product offerings and focus on product innovation.

Buyouts, Loan Demand Aid Morgan Stanley (MS) Amid Low Rates

Per the Zacks analyst, inorganic expansion initiatives, focus on less capital-markets dependent operations and decent loan demand will support Morgan Stanley amid lower rates and economic slowdown.

Cost Savings to Aid Estee Lauder (EL), Store Closures a Woe

Per the Zacks analyst, Estee Lauder is set to gain from cost saving plans amid COVID-19 outbreak. However, store closures are likely to dent results in the fourth quarter.

Work-From-Home & Online Learning Wave Aids Zoom Video (ZM)

Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.

Pre-Salt Reserves Boosts Petrobras (PBR), Debt Pile Hurts

Petrobras' stakes in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook. However, the Zacks analyst is concerned over the company's huge debt load of $71.2 billion.

Robust Sensor Unit Drives DexCom (DXCM), Higher Costs a Woe

Per the Zacks analyst, DexCom has been gaining consistently from the Sensor and Transmitter segments. However, increase in operating expenses continues to raise concern.

New Upgrades

Allstate (ALL) Rides on Strong Property-Liability Segment

Per the Zacks analyst, premium growth in the Property-Liability Segment remains strong owing to pricing discipline and strong claims management that has contributed to topline growth.

Repligen's (RGEN) Lucrative Product Franchisees Aid Growth

Per the Zacks analyst, Repligen is progressing well with all its product franchisees performing well in the first half of 2020 while the company witnessed a strong overall organic revenue growth.

Sturdy Comps Run to Fuel Grocery Outlet's (GO) Top Line

Per the Zacks analyst, Grocery Outlet's opportunistic purchasing, marketing efforts and new product offerings facilitate comparable-store sales growth. Second-quarter comparable-store sales rose 16.7%

New Downgrades

Sinopec's (SNP) Profits to Suffer from Refining Weakness

The Zacks analyst expects lower energy demand, owing to the coronavirus pandemic, to hurt Sinopec's refining businesses.

Suspension of Mining Operations to Hurt Royal Gold (RGLD)

The Zacks Analyst remains concerned that suspension of mining operations and production curtailment owing to the resurgence of coronavirus cases is likely to impact Royal Gold's results.

Defense Budget Risk & Higher Expenses Hurts Mercury (MRCY)

Per the Zacks analyst, Mercury's prospects suffer from a likely decline in defense-related spending due to the massive fiscal stimulus to rejuvenate the economy. Higher expenses also hurt profits.

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
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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