Top Stock Reports for Apple, Walt Disney & Broadcom
Wednesday, February 16, 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 Apple Inc. (AAPL), The Walt Disney Company (DIS), and Broadcom Inc. (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 >>>
Shares of Apple have underperformed the Zacks Computer - Mini computers industry over the past year (+32.0% vs. +32.7%), however the company’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac had a terrific quarter, driven by strong demand for newly redesigned MacBook Pro powered by M1 chip.
At the same time, Apple expects to achieve solid year-over-year revenue growth and set a second quarter revenue record despite significant supply constraints, which it estimates to be less than the fiscal first quarter. The Zacks analyst believes that App Store, Cloud Services, Music, advertising and AppleCare will continue to drive Services growth.
(You can read the full research report on Apple here >>>)
Shares of Walt Disney have outperformed the Zacks Media Conglomerates industry over the past two year period (+10.9% vs. -6.5%). The Zacks analyst believes that Disney benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Moreover, with the launch of STAR+, Disney’s stand-alone general entertainment and sports streaming service in Latin America is expected to boost subscriber growth.
Revival in Parks, Experiences and Products businesses hold promise. Solid performance of Shang Chi and the Legend of the Ten Rings at the box-office and the upcoming releases of The King’s Man and Deep Water are anticipated to aid Studio Entertainment’s top line. However, Disney’s cruise line business remains closed and its re-opened resorts are operating at a lower capacity.
(You can read the full research report on Walt Disney here >>>)
Broadcom shares have gained +25.0% over the past year against the Zacks Electronics - Semiconductors industry’s rise of +11.4%. The Zacks analyst believes that Broadcom is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals. In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions and continued momentum in networking and broadband solutions.
Networking was driven by routing from service providers in the expansion of 5G networks for backhaul, metro and call, as well as major share gains in ethernet network interface controllers within data centers. Synergies from acquisitions of CA and Symantec’s enterprise security business aided results. Further, an upbeat first quarter guidance on strong uptick in broadband, networking and wireless revenues is encouraging. However, increasing competition along with high debt levels are persistent overhangs.
(You can read the full research report on Broadcom here >>>)
Other noteworthy reports we are featuring today include American Express Co. (AXP) and Becton, Dickinson and Co. (BDX).
Mark Vickery
Senior Editor
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Disney (DIS) Banks on Disney+ Growth & Reopening of Parks
Broadcom (AVGO) Drives on Wireless Products & Acquisitions
Featured Reports
Reliable Assets, Free Cash Flow Plan Aid CNX Resources (CNX)
Per the Zacks analyst CNX Resources' Marcellus and Utica shales assets will continue to boost production.
Suncor (SU) Buoyed by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model positions it well for strong cash flow generation. However, the company's high oil price sensitivity is a concern.
Avis Budget (CAR) Benefits From Acquisitions, Amid High Debt
The Zacks analyst is encouraged by Avis Budget's buyout strategy to expand global footprint and brand presence. High debt may limit its future expansion and worsen its risk profile.
Focus on Electrification to Drive Magna (MGA) Amid Cost Woes
While Magna's electrification portfolio- including EtelligentEco, EtelligentForce and EtelligentReach- are set to buoy revenues, high commodity costs may weigh on margins, per the Zacks analyst.
Solid Demand Trends, Subscription Revenue Aid HubSpot (HUBS)
Per the Zacks analyst, HubSpot is likely to benefit from the surging subscription revenues and increasing customer base driven by diligent execution of operational plans and healthy growth dynamics.
Strength in Product Portfolio, Strategic Deals Aid BD (BDX)
The Zacks analyst is upbeat about BD's robust and diversified product portfolio. BD inking a slew of strategic deals over the past few months also buoy optimism.
High Revenues Aid, Steep Costs Ail American Express (AXP)
Per the Zacks analyst, its growing topline owing to strategic initiatives and product launches poise it well for growth. However, escalating expense level is a threat.
New Upgrades
Everest Re (RE) to Grow on Better Pricing, Solid Retention
Per the Zacks analyst, Everest Reis poised to grow on disciplined cycle management, new business opportunities, continued double-digit rate increases and strong renewal retention on existing business.
Rising Deposits, Expense Management Buoys Wells Fargo (WFC)
Per the Zacks analyst, Wells Fargo continues to benefit from deposit growth, particularly in consumer and commercial banking segments. Also, cost-efficiency initiatives are likely to support growth.
Product Innovations to Aid JAKKS Pacific's (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific's solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees should boost top-line growth.
New Downgrades
Teva (TEVA) New Drugs May Not Make Up For Lost Generic Sales
The Zacks analyst is concerned about Teva's generic products' growth due to limited new launches. Teva's newest drugs, Austedo and Ajovy may not replace lost revenue due to Copaxone/ProAir generics.
TreeHouse Foods (THS) Hurt by Supply-Chain Woes, High Costs
Per the Zacks analyst, TreeHouse Foods is battling supply-chain hurdles and related cost woes. Labor shortages and supply-chain woes are likely to hurt revenue and profits in at least first-half 2022.
Regulatory Concerns & Rising Competition Hurt Alibaba (BABA)
Per the Zacks analyst, regulatory concerns regarding Alibaba's monopolistic behavior alongwith intensifying competition in e-commerce as well as cloud computing market are overhangs.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
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