Top Research Reports for Broadcom, Intuit & Intuitive Surgical
Thursday, July 13, 2023
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 Broadcom Inc. (AVGO), Intuit Inc. (INTU) and Intuitive Surgical, Inc. (ISRG). 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 >>>
Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+90.3% vs. +66.2%). The company is benefiting from strong deployment of generative AI by hyperscalers, service providers and enterprises. It expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom. Expanding portfolio with the launch of second-gen Wi-Fi 7 wireless connectivity chip is a catalyst.
However, server storage connectivity revenues are expected to be up low single digits year over year. Broadband revenues growth is expected in moderate to low-single-digit percent year over year.
(You can read the full research report on Broadcom here >>>)
Shares of Intuit have gained +26.5% over the past year against the Zacks Computer - Software industry’s gain of +37.4%. The company is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues.
The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.
However, macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
(You can read the full research report on Intuit here >>>)
Intuitive Surgical shares have outperformed the Zacks Medical - Instruments industry over the past year (+70.1% vs. +16.8%) reflecting the company's solid operating momentum. The company reported encouraging first-quarter results, wherein earnings and revenues beat estimates. The da Vinci procedure volume continued its recovering trend of 2022 into the first quarter of 2023, which is likely to persist for the rest of the year.
Improving procedure volume along with better system placements and services across all markets will drive top-line growth in 2023. Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. Its Ion platform has strong growth potential. A stable liquidity position is an added plus.
However, higher component and labor costs, and a strong U.S. dollar continues to hurt gross margin. Stiff competition in the global MedTech space and rising costs remain concerns for Intuitive Surgical.
(You can read the full research report on Intuitive Surgical here >>>)
Other noteworthy reports we are featuring today include AT&T Inc. (T), Shopify Inc. (SHOP) and Intercontinental Exchange, Inc. (ICE).
Director of Research
Sheraz Mian
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
Broadcom (AVGO) Rides on Strong Demand for Wireless Products
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Featured Reports
AT&T (T) Rides on Solid Wireless Traction, Steady 5G Rollout
Per the Zacks analyst, AT&T is likely to benefit from solid growth in its postpaid wireless business, driven by a customer-centric business model, lower churn rate and higher-tier unlimited plans.
Intercontinental (ICE) Banks on Buyouts & Solid Balance Sheet
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Moreover, a solid balance sheet provides financial flexibility.
Hess (HES) Gains From Latest Discoveries at Stabroek Block
Per the Zacks analyst, Hess' two discoveries at the Stabroek Block will add to the block's recoverable resource estimates of 11 billion barrels. Yet, its significant level of leverage is concerning.
Favorable Budget Aids L3Harris (LHX), Higher Cost May Hit
Per the Zacks analyst, increased budgetary provision for defense spending boost growth prospects for L3Harris Technologies. Yet tight labor market induced cost hike for airlines may hurt the stock.
Jazz's (JAZZ) Oncology Drugs Fuel Sales & Diversification
While Jazz's (JAZZ) sleep disorder portfolio has exhibited strong demand, the Zacks Analyst is impressed with the company's oncology drugs whose sales diversify the existing marketed portfolio.
Acuity Brands' (AYI) Focus on Innovation Bode Well, Cost Ail
Per the Zacks analyst, Acuity Brands benefits from product innovation and in-organic moves. However, high cost and volatile business environment are concerns.
Energizer (ENR) Project Momentum Initiative Seems Promising
Per the Zacks analyst, Energizer's Project Momentum has started off well. The company is making efforts to drive productivity via improvement initiatives and streamlining international organization.
New Upgrades
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.
Edmunds Buyout and Cost Control to Aid CarMax (KMX)
The acquisition of Edmunds solidified CarMax's position in the used auto ecosystem and enhanced its digital capabilities. Cost cut efforts are also likely to step up margins, per the Zacks analyst.
Watts Water (WTS) To Benefit from Strong Product Portfolio
Per the Zacks analyst, Watts Water is gaining from diversified product portfolio, geographic expansion and efficient cost management. Strong balance sheet and synergies from buyouts are tailwinds.
New Downgrades
Canadian Pacific KC (CP) Reels Under High Expenses
The Zacks analyst is worried about the elevated operating costs. High debt levels represent another headwind.
Clean Fuel Use, JV Termination Ail Arch Resources (ARCH)
Per the Zacks analyst, Arch Resources prospects has been impacted by rising usage of clean fuel and termination of joint venture agreement with Peabody Energy might hinder growth prospects.
Comerica (CMA) Hurt by Higher Expenses, Loan Concentration
Per the Zacks analyst, an increase in non-interest expenses and a high exposure to commercial and commercial mortgage loans can be risky for Comerica, amid uncertain economic conditions.
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AT&T Inc. (T) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
