Top Research Reports for Bank of America, Broadcom & Lowe's
Thursday, November 19, 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 Bank of America (BAC), Broadcom (AVGO) and Lowe's Companies (LOW). 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 >>>
Bank of America shares have outperformed the Zacks Major Regional Banks industry in the year to date period (-24% vs. -26.8%). The Zacks analyst believes that opening of new branches, steady improvement in digital offerings and efforts to manage expenses are likely to support profitability.
Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters. The company’s third-quarter 2020 results reflect low rates, less loan demand and subdued fee income growth. A strong balance sheet and liquidity position are expected to continue aiding the company's financials amid economic slowdown.
However, near-zero interest rates and no near-term chance of any change in the same are expected to continue hurting the bank’s margins and interest income. Also, coronavirus-induced concerns are likely to further hamper business activities. Thus, loan growth is expected to be muted in the near term.
(You can read the full research report on Bank of America here >>>)
Shares of Broadcom have gained +21.2% over the past year against the Zacks Electronics - Semiconductors industry’s rise of +42.6%. The Zacks analyst believes that Broadcom is poised to benefit from robust adoption of Wi-Fi 6 in access gateway, and cable DOCSIS 3.1 products.
Acceleration in 5G deployment, significant production ramp up and increase in radio frequency (RF) content favors prospects. Further, synergies from acquisitions of CA and Symantec’s enterprise security business are anticipated to bolster the company’s presence in infrastructure software vertical. The company has also provided encouraging guidance for Q4 on strong uptick in wireless revenues, which bodes well.
However, anticipated sluggishness in enterprise demand might impact server storage revenues. Efforts to reduce channel inventory amid COVID-19 crisis-induced market uncertainty and increasing lead times, is likely to weigh on industrial revenues.
(You can read the full research report on Broadcom here >>>)
Lowe's shares have gained +27.9% over the past six months against the Zacks Building Products - Retail industry’s rise of +18%. The Zacks analyst believes that Lowe’s has been gaining from sturdy growth across all merchandise segments and geographies. Also improved omni-channel capabilities are boosting sales on lowes.com.
In third quarter, earnings and sales outpaced the Zacks Consensus Estimate and grew year on year. Results gained from strong demand from the company's do-it-yourself and pro customers. Moreover, the company’s online sales continued to grow, backed by strong demand and improved omni-channel offerings.
However, the company’s fourth-quarter earnings view came in below analysts’ expectations. Higher operating expenses related to the pandemic and expansion of supply chain infrastructures is likely to put pressure on the company’s performance in the fourth quarter. Also sales growth is expected to moderate in the said quarter, due to seasonal demand pattern.
(You can read the full research report on Lowe's here >>>)
Other noteworthy reports we are featuring today include Bristol-Myers Squibb (BMY), Wells Fargo (WFC) and Duke Energy (DUK).
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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
New Branches, Digitization Support BofA (BAC) amid Low Rates
Portfolio Strength & Acquisitions Benefit Broadcom (AVGO)
Lowe's (LOW) Boasts Solid Online Sales, High Costs a Worry
Featured Reports
Revlimid, Eliquis Fuel Bristol-Myers (BMY) As Opdivo Weakens
Per the Zacks analyst, Eliquis and Revlimid fuel Bristol-Myers as Opdivo faces competitive pressure. Nevertheless, the label expansion of Opdivo should boost prospects.
Loan Growth Supports Wells Fargo (WFC) Amid Low Rates
Per the Zacks analyst, organic growth remains a key strength at Wells Fargo. Higher revenues reflect improving loan and deposit balances.
Investment Plan Aids Duke Energy (DUK), Commodity Prices Hurt
Per the Zacks analyst, the company's robust five-year capital plan will drive earnings base growth. However, potential volatility in fuel and electricity prices can create operational risks.
Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that an increase in Southern's regulated business customer base will support its revenue growth.
Edwards Lifesciences (EW) Gains From Solid Product Uptake
The Zacks analyst is upbeat about INSPIRIS RESILIA aortic valve and KONECT aortic valve conduit's strong momentum despite the pandemic.
Acquisitions, Revenue Passenger Miles Aids TransDigm (TDG)
Per the Zacks analyst, TransDigm strengthens its position in proprietary aerospace components' markets, via strategic acquisitions.
Low Costs Aid Southwest (LUV) Amid Weak Passenger Revenues
Per the Zacks analyst, cost-control measures and low fuel prices are keeping Southwest afloat amid softness in passenger revenues, due to coronavirus-led drop in air-travel demand.
New Upgrades
Xilinx (XLNX) Rides on Solid FPGAs Adoption in Data Centers
Per the Zacks analyst, solid adoption of its FPGA products by data-center operators is a key driver for Xilinx. However, a slowdown in 5G deployments and the U.S.-China trade dispute poses a concern.
Solid Growth of Digital Platform Aids Western Union (WU)
Per the Zacks analyst, the company's digital platform has been adding customers and strengthening business. Streamlining of business operations will help it to focus on core competencies.
Virtu Financial (VIRT) Gains from Market Making Segment
Per the Zacks analyst, the Market Making segment is well-poised for growth courtesy of growing retail engagement. Higher commissions have been driving results at its Execution Services segment.
New Downgrades
Weakness in Foodservice Unit a Woe For Post Holdings (POST)
Per the Zacks analyst, lower demand from foodservice customers amid COVID-19 is a woe for Post Holdings (POST). Sales in the Foodservice unit fell 41.3% year over year in fiscal third-quarter.
Urban Outfitters (URBN) Grapples With Dismal Gross Margin
Per the Zacks analyst, Urban Outfitters continues to grapple with soft gross margin. This is due to lower sales and higher delivery and logistics costs on account of penetration of digital channels.
Lower Sales Volumes of Motor Fuel Hurt Sunoco (SUN)
Declining sales volumes of motor fuel have been affecting Sunoco's bottom line. The partnership's significant debt exposure is also concerning the Zacks analyst.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
Lowes Companies, Inc. (LOW) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
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