Top Analyst Reports for Visa, Broadcom & Medtronic

Tuesday, September 6, 2022
 
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 Visa Inc. (V), Broadcom Inc. (AVGO) and Medtronic plc (MDT). 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 >>>

Visa shares have declined -11.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -28.6%. The stock has modestly outperformed the S&P 500 index over the past year, but has lagged rival Mastercard. While a number of near-headwinds will likely weigh on profitability, the company’s long-term outlook remains favorable.

Numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon.

The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by a strong cash position, the company remains committed to boosting its shareholder value through share buybacks and dividend payments.

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

Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+3.5% vs. -15.9%). The company’s top-line growth was driven by strength in cloud and service provider segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers.

Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth. Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. An upbeat fourth-quarter fiscal 2022 guidance is encouraging.

The VMware acquisition will aid prospects over the long term. However, increasing competition, along with high debt levels, are persistent overhangs.

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

Medtronic shares have declined -14.6% over the year-to-date basis against the Zacks Medical - Products industry’s decline of -45.2%. The Zacks analyst believes that the company’s 2023 adjusted earnings will dip 0.4% from the year-ago period on 4.2% revenue growth mostly due to high inflation and supply disruptions. However, in fiscal 2024, adjusted earnings are expected to grow 3.8% on 3.7% growth in revenues. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations.

Nevertheless, Medtronic is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, the company is gaining market share, banking on recent product launches. Also within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion are the key factors that support our bullish stance on the stock.

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

Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), American Tower Corporation (AMT), and BP p.l.c. (BP).

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

Visa (V) Rides on Improving Top Line & Solid Balance Sheet

Strong Demand for Networking Products Aids Broadcom (AVGO)

Medtronic (MDT) Gains in Market Share amid Macro Headwinds

Featured Reports

Disney+ Growth & Revival of Parks Business Aids Disney (DIS)
Per the Zacks analyst, growing popularity of Disney+ makes it a key catalyst for Disney's growth prospects. Moreover, revival of the theme parks business bodes well for the company's prospects.

American Tower (AMT) to Gain From 4G and 5G Investments
Per the Zacks Analyst, American Tower is expected to benefit from increased investments by wireless carriers in 4G and 5G networks, growing wireless penetration and spectrum auctions.

Eylea, Dupixent Fuel Regeneron (REGN) Amid Competition
Per the Zacks analyst, solid demand for Eylea and Dupixent maintain momentum for Regeneron amid competition. However, REGEN-COV sales have plunged due to lack of efficacy against the Omicron variant.

E-Commerce Efforts Boost AutoZone (AZO) Amid Supply Woes
AutoZone is riding on the success of its omni-channel and e-commerce efforts that aid growth. Yet, per the Zacks analyst, supply chain issues led by inflation and chip crunch weigh on its margins.

Otis Worldwide (OTIS) to Gain From Innovations, Costs High
Per the Zacks analyst, Otis Worldwide is poised to gain from diversified portfolio of innovative space-saving and energy-efficient solutions. However, rising input costs raise concern.

Solid Investments Boost Entergy (ETR), Weak Solvency Woes
Per the Zacks analyst, Entergy's disciplined investment in grid upgrades should drive its earnings and add impetus to its growth trajectory. However, its weak solvency position remains a bottleneck.

Expeditors (EXPD) Rides on Airfreight Revenues, Costs Ail
The Zacks Analyst is impressed with the fact that Expeditors is being aided by the uptick in airfreight revenues. However, rising operating expenses are likely to keep the bottom line under pressure.

New Upgrades

BP to Benefit From Renewable Energy Project in Australia
Per the Zacks analyst, BP is well-positioned to gain from Australia's renewable energy project. The project can be the world's leading producer of green hydrogen.

Enterprise (EPD) Banks on $5.5B Major Midstream Projects
The Zacks analyst likes Enterprise since the partnership is well-positioned to generate additional cash flow from $5.5 billion of growth midstream projects currently under construction.

ADTRAN (ADTN) Rides on Networking Solutions, Diversification
Per the Zacks analyst, ADTRAN is likely to benefit from healthy demand trends, end-to-end strong fiber broadband solutions, complementary assets from ADVA buyout and improved customer diversification.

New Downgrades

Semi- Conductor Shortage and Stiff Competition to Hurt Flex
Per the Zacks analyst, Flex's performance is affected due to inefficiencies in the automotive business and health solutions owing to semi-conductor shortages. Stiff competition is an added concern.

Pricing Pressure Hindering Stryker's (SYK) Topline Growth
Per the Zacks analyst, unfavorable pricing environment is likely to act as a hindrance to Stryker's top-line growth in the near term.

Best Buy (BBY) Reports Soft Comparable Store Sales in Q2
Per the Zacks analyst, Best Buy posted soft comparable sales in second-quarter fiscal 2023. The metric dropped 12.1% in the reported quarter and is projected to decline 11% in the current fiscal year.

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American Tower Corporation (AMT) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
Visa Inc. (V) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Broadcom Inc. (AVGO) : Free Stock Analysis Report
 
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