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Top Stock Reports for Costco, QUALCOMM & Applied Materials

Thursday, November 4, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Costco Wholesale Corporation (COST), QUALCOMM Incorporated (QCOM), and Applied Materials (AMAT). 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 Costco have outperformed the Zacks Retail - Discount Stores industry over the past three-month period (+14.3% vs. +4.1%). The Zacks analyst believes that the company’s growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales and earnings numbers.

Costco put up a decent performance in fourth-quarter fiscal 2021. While the top line missed the Zacks Consensus Estimate, the bottom line marked second straight beat. Both the metrics grew year over year. Also, Costco maintained stellar comps run. While aforementioned factors raise optimism, supply chain bottlenecks and higher labor and freight costs remain concerns.

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

Shares of QUALCOMM have underperformed the Zacks Wireless Equipment industry over the past year (+4.8% vs. +18.2%). The Zacks analyst believes that Qualcomm is likely to benefit from solid 5G traction with greater long-term visibility. The chipmaker anticipates witnessing healthy growth momentum, driven by the ramp-up in 5G-enabled chips and higher demand for digital transformation in the cloud economy.

However, high research and development costs are likely to strain its margins. Severe competition from major players, huge concentration risks, and softness in demand from China might impair its growth potential. Global chip shortage in the semiconductor industry as a result of supply-chain disruptions due to the COVID-19 pandemic is a major headwind.

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

Shares of Applied Materials have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the past year (+117.7% vs. +99.2%). The Zacks analyst believes that Applied Materials is benefiting from strong momentum across Semiconductor Systems and Applied Global Services. Further, solid demand for silicon in several applications across various markets remains a tailwind. Additionally, growing usage of OLED technology in smartphones, televisions and computers, remained positive.

Furthermore, increased customer spending in foundry and logic on the back of rising need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets, is a major positive. Also, strong momentum in conductor etches is benefiting the company’s position in DRAM and NAND. Moreover, the company remains optimistic about increasing DRAM spending. However, mounting expenses and rising market competition remain overhangs.

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

Other noteworthy reports we are featuring today include Equinor ASA (EQNR), Intercontinental Exchange (ICE) and Ryanair Holdings plc (RYAAY).

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>>>

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
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
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Zacks Investment Research