Friday, November 6, 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 QUALCOMM (QCOM), Intuit (INTU) and Boeing (BA). 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 >>>
QUALCOMM shares have outperformed the Zacks Wireless Equipment industry in the year to date period (+64.8% vs. +32.9%). The Zacks analyst believes that Qualcomm is benefiting from the investments toward building a licensing program in mobile.
Qualcomm reported solid fourth-quarter fiscal 2020 results driven by the ramp-up in 5G-enabled chips and robust business model with the ability to respond pro-actively to the evolving market scenario. The company has resolved a dispute with Huawei and inked a new long-term patent license agreement, which augurs well for long-term revenues. Qualcomm has launched low-priced 5G chips for the masses for a seamless transition to 5G while delivering low-power resilient multi-gigabit connectivity.
However, lower handset shipments due to COVID-19 pandemic remain a near-term headwind. Qualcomm is expected to face softness in demand from China. Over the past years, the company’s margins have declined due to high operating and R&D expenses. Intense competition from low-cost chip manufacturers and concentration risks are other significant concerns.
(You can read the full research report on QUALCOMM here >>>)
Shares of Intuit have gained +35.3% over the past year against the Zacks Computer Software industry’s rise of +42%. The Zacks analyst believes that Intuit is witnessing recovering trends across its platforms including improved retention rates and payment volumes.
Small businesses are accelerating their shift to online and omni-channel commerce, a trend that Intuit is well-poised to benefit from. Sturdy momentum in its QuickBooks solutions is a key catalyst. Growing demand for TurboTax Live and increasing clientele of Intuit’s payroll offering are positives.
Moreover, the company’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues. Additionally, the acquisition of Credit Karma is expected to boost customer base. Nonetheless, Intuit’s near-term prospect looks gloomy as the coronavirus-led global lockdown has affected small businesses, posing risks to its top-line growth.
(You can read the full research report on Intuit here >>>)
Boeing’s shares have gained +22.1% over the past six months against the Zacks Aerospace & Defense industry’s rise of +3.4%. The Zacks analyst believes that the long-term prospects of global services unit and increasing fiscal defense budget are expected to boost Boeing's growth.
Boeing ended third-quarter 2020 on a solid note, with its top and bottom line figures surpassing the respective Zacks Consensus Estimate. However, results were unimpressive on a year-over-year basis. Nevertheless, Boeing remains the largest aircraft manufacturer in the United States. Although its commercial business outlook for the near term appears grim, over the long run, the jet maker holds immense growth prospects.
However, Airbus beat Boeing as the world's largest plane makers in 2019 for the first time in the last eight years. Although the company projects its 737 MAX deliveries to resume during the fourth quarter of 2020, its commercial business is likely to perform poorly until successful delivery of these jets starts and substantial revenues are generated.
(You can read the full research report on Boeing here >>>)
Other noteworthy reports we are featuring today include Biogen (BIIB), Petrobras (PBR) and Ally Financial (ALLY).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
Qualcomm (QCOM) Rides on 5G Chip, Solid Business Model
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Military Business Aids Boeing (BA), Poor Deliveries Hurt
Biogen (BIIB) Focuses on Aducanumab Amid Rising Competition
The Zacks analyst notes that the approvability of Alzheimer's drug, aducanumab, has improved after its BLA received the priority tag.
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 $66.2 billion.
Revenue Diversification Efforts to Aid Ally Financial (ALLY)
Per the Zacks analyst, Ally Financial's efforts to diversify into banking products and enhance digital offerings will support profits.
Alleghany (Y) Set to Grow on Premiums, Cat Loss Woes Persist
Per the Zacks analyst, Alleghany is set to grow on solid reinsurance and insurance segments, which will drive improvement in net premiums.
Hanesbrands (HBI) Gains From Online Sales Amid COVID-19
Per the Zacks analyst, Hanesbrands (HBI) is gaining from solid online sales amid COVID-19.
Ingevity (NGVT) Gains on Capa Buyout Amid Weak Demand
Per the Zacks analyst, the Capa caprolactone buyout has provided Ingevity with a new technology platform to drive revenue and earnings growth.
Solid Product Pipeline Aids Myriad Genetics (MYGN) in Pandemic
The Zacks analyst is upbeat about Myriad Genetics' slew of product launches in the recent months. Collaboration with OptraHEALTH to implement AI-powered ChatBOT, Gene, buoys optimism.
Cirrus Logic (CRUS) Rides on Strengthening Product Portfolio
Per the Zacks analyst, Cirrus Logic's expanding product portfolio comprising audio, voice, and other adjacent market items, such as haptics, is a key driver.
Maxim (MXIM) Draws Strength from Auto & Industrial Segments
The Zacks analyst believes that strong growth across all end markets, namely, auto and industrial will continue to aid growth. Also, a diversification strategy will drive growth for the company.
Signet (SIG) to Keep Gaining From Robust E-commerce Sales
Per the Zacks analyst, Signet's e-commerce channel has been gaining from the company's prudent investment in virtual selling. Online revenues are likely to keep growing and support same-store sales.
Escalating Costs & Negative Rates Hurt Mitsubishi UFJ (MUFG)
Per Zacks analyst, Mitsubishi UFJ has been witnessing a rise in expenses along with increased regulatory costs in overseas businesses. Also, Japan's negative interest rate policy remains a concern.
FTI Consulting (FCN) Grapples With Increased Talent Cost
The Zacks analyst believes that escalating investments in employees increases FTI Consulting's expenses and weighs on the company's bottom-line growth.
Cruise Cancellations & Cash Burn Hurts Norwegian Cruise (NCLH)
Per the Zacks analyst, cruise cancellations and cash burn due to the coronavirus pandemic continues to hurt Norwegian Cruise. Due to the pandemic, bookings for 2020 have declined significantly.
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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Petroleo Brasileiro S.A. Petrobras (PBR) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Biogen Inc. (BIIB) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Ally Financial Inc. (ALLY) : Free Stock Analysis Report
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