Top Research Reports for Walt Disney, Charles Schwab & Synopsys

Mark Vickery
·6-min read

Tuesday, May 28, 2024

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 The Walt Disney Company (DIS), The Charles Schwab Corporation (SCHW) and Synopsys, Inc. (SNPS), as well as a micro-cap stocks HF Foods Group Inc. (HFFG).  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 Walt Disney have outperformed the Zacks Media Conglomerates industry over the past year (+15.6% vs. +10.1%). The company’s second-quarter fiscal 2024 results reflect growth in Disney+ subscribers and theme park and resort businesses. Attractions like the Frozen theme land at Hong Kong Disneyland and the Zootopia theme land at Shanghai Disney, are expected to boost the prospects of the theme park business in th near term.

Disney’s declining ad revenues due to fewer impressions has been a headwind for some time now. Disney+’s profitability is expected to be negatively impacted by higher investments in content, which will increase programming and production costs for Media and Entertainment Distribution.

Its leveraged balance sheet remains a concern. Disney+ is facing tough competition in the streaming market from the likes of Netflix and Amazon Prime Video.

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

Shares of Charles Schwab have gained +22.1% over the past six months against the Zacks Financial - Investment Bank industry’s gain of +32.3%. The company’s first-quarter 2024 results were aided by robust asset management performance.

Acquisitions, which are earnings accretive, have reinforced Schwab’s position as a leading brokerage player. Amid high interest rates, margins will likely grow, but rising funding costs might weigh on it.

As the company keeps investing to bolster business efficiency, operating costs will be elevated. Buyouts and rising compensation costs will also result in higher costs. Its trading revenues will be under pressure amid uncertain market conditions.

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

Synopsys’ shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+14.1% vs. +10.8%). The company is benefiting from solid design wins due to a robust product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for Synopsys’ Fusion Compiler product is boosting its top line.

The growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. The rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new compute and machine learning architectures.

However, tightening corporate budget amid ongoing macroeconomic challenges, along with unfavorable currency exchange rates and stiff competition, might hurt its near-term growth prospects. Geopolitical challenges and restrictions over trade with Huawei are other woes.

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

Shares of HF Foods have underperformed the Zacks Food - Miscellaneous industry over the past year (-8.3% vs. -3.9%). This microcap company with market capitalization of $176.25 million is facing challenges which includes high debt levels, low net profit margins, declining cash flow, and inventory management issues. Dependence on the Asian restaurant market, exposure to interest rate fluctuations, and geopolitical risks pose concerns.

The impact of exiting the chicken processing business and the risks associated with transformation initiatives persist. Nevertheless, HF Foods’ revenues increased 0.6% year over year in first-quarter 2024 despite exiting its chicken processing business in 2023. Profitability improved significantly, with net loss narrowing and adjusted EBITDA increasing.

Cost control measures, such as centralized purchasing, fleet enhancements, and digital transformation, are driving efficiencies. With a strong liquidity position, HF Foods is well-positioned for strategic mergers and acquisitions (M&A) to expand its footprint.

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

Other noteworthy reports we are featuring today include Waste Management, Inc. (WM), Northrop Grumman Corporation (NOC) and PulteGroup, Inc. (PHM).

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

Disney (DIS) Banks on Disney+, Theme Parks Business Growth

Strategic Acquisitions Aid Schwab (SCHW) Amid Cost Concerns

Synopsys (SNPS) Banks on Strong Product Menu, Contract Wins

Featured Reports

Focused Differentiation Aids Waste Management (WM), Cost High
Per the Zacks analyst, differentiation through capitalization of extensive assets ensures long-term profitable growth for Waste Management. Rising finance costs is a concern.

Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.

Strong Product Portfolio Buoys Optimism for Baxter (BAX)
Per the Zacks analysts, Baxter International is well poised for growth backed by a strong product portfolio. Introduction of new therapies and products likely to drive the topline growth.

Ovintiv (OVV) to Gain from Premium Asset Portfolio
The Zacks analyst likes Ovintiv's premium inventory of drilled uncompleted wells that can be quickly brought into production. However, the company's low current ratio signals financial difficulties.

Dr. Reddy's (RDY) Generic Drugs Boost Sales, Competition a Woe
Per the Zacks analyst, Dr. Reddy's enjoys a strong foothold in the generics market with new product launches and pending filings. However intense competition with other generics manufacturers is a woe

Ralph Lauren's (RL) Next Great Chapter Plan Seems Encouraging
Per Zacks analyst, Ralph Lauren's Next Great Chapter Plan appears encouraging. This includes creating a simplified global organizational structure and rolling out improved technological capabilities.

Diversified Portfolio Aids Blue Owl Capital (OBDC), Costs Hurt
Per the Zacks analyst, Blue Owl Capital's revenues are driven by higher investment income, and a diversified portfolio safeguards it against tough times. Rising expenses are a concern.

New Upgrades

Solid Housing Demand & Strategic Plans Aid PulteGroup (PHM)
Per the Zacks analyst, PulteGroup is benefiting from favorable housing demand along with a lower cancellation rate. Also, its focus on first-time buyers and strategic initiatives bode well.

Goodyear Forward & EMEA Restructuring to Aid Goodyear (GT)
The Zacks analyst believes that the Goodyear Forward plan will enhance the company's portfolio and margins, and reduce leverage. Strategic restructuring in the EMEA segment also bodes well.

BlackBerry (BB) Gains from Strengthening Cybersecurity Unit
Per the Zacks analyst, momentum in the Cybersecurity unit along with rapid adoption of the QNX platform in the Automotive and General Embedded markets are likely to boost BlackBerry's performance.

New Downgrades

Escalating Expenses and Competition Hurt Avis Budget (CAR)
Per the Zacks analyst, increasing expenses due to fleet cost is a major headwind to Avis Budget's bottom-line. Rising competition from other players is an overhang.

Weakness Across Both Business Segments Ails Lumen (LUMN)
Per the Zacks analyst, weakness in across both the business segments is affecting Lumen. Impact of divestitures, CDN and commercial agreements amid the business transformation process are headwinds.

Weak End-Market Demand Hurts Skyworks' (SWKS) Prospects
Per the Zacks analyst, Skyworks is suffering from sluggish demand in the mobile end-market demand. Weakness in infrastructure and automotive end markets hurts broad market growth.

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

Northrop Grumman Corporation (NOC) : Free Stock Analysis Report

The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

PulteGroup, Inc. (PHM) : Free Stock Analysis Report

The Walt Disney Company (DIS) : Free Stock Analysis Report

Synopsys, Inc. (SNPS) : Free Stock Analysis Report

HF FOODS GROUP INC. (HFFG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Singapore Airlines’ CEO gets pay bump after record annual profit

    Singapore Airlines Chief Executive Officer Goh Choon Phong was paid S$8.11 million ($6 million) last financial year, a 21% increase from the previous period.

  • Stock market today: Nasdaq leads gains to kick off new quarter as Tesla pops 6%

    Political turmoil in France gripped investors weighing whether stocks can build on their stellar first-half performance.

  • How do you count? Anwar asks Perikatan amid debate over proposed GIP acquisition of MAHB shares

    KUALA LUMPUR, July 1 — Prime Minister Datuk Seri Anwar Ibrahim today maintained that Malaysia is not at risk of losing c...

  • Now you can invest in digital gold from just RM10 with your TNG eWallet

    KUALA LUMPUR, July 2 — Malaysians can now invest in digital gold securely and conveniently from as low as RM10 following...

  • British couple become wealthier than Larry Fink after £2.5bn BlackRock deal

    A husband and wife duo who built an outdoor theatre on the grounds of their Suffolk farm estate have been catapulted into Britain’s rich list after netting £2bn from the sale of their financial data business.

  • Will Fed rate cut be 'reactive or proactive'?

    The June ISM manufacturing data fell short of expectations, reigniting speculation about a potential Federal Reserve rate cut. BCA Research chief US equity strategist Irene Tunkel joins Catalysts to share her insights on the central bank's next moves. Tunkel observes that "bad news appears to be good news" in this context. The slowing economic growth, she argues, creates conditions favorable for a Federal Reserve interest rate cut. She anticipates the first cut could come by the end of the year, partly due to "political uncertainty." However, Tunkel emphasizes that the crucial factor is whether the Fed's rate cut is "reactive or proactive." "I would argue that it may not matter when the Fed exactly cuts interest rates, but it matters what they say, and what is the perception of the market about the trajectory of interest rates," Tunkel tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Angel Smith

  • Prime Broker Hidden Road Adds Major Crypto Exchanges, Expands Use of BlackRock’s BUIDL Token

    Hidden Road is now integrated with Coinbase International Exchange, OKX, Deribit, Bitfinex, AsiaNext, SIX Digital Exchange and Bullish.

  • Petrobras (PBR) Puts Off the Barracuda-Caratinga FPSO Tender

    Petrobras (PBR) delays the Barracuda-Caratinga FPSO tender for the second time due to difficulty in attracting floater companies for its Campos basin project.

  • Singapore to tighten casino rules to counter terrorism funding

    Singapore will lower the threshold for checks on cash deposits received by casinos in a bid to prevent exploitation by terrorist and criminal organisations.

  • Jobs data: Key reports investors are eyeing this week

    Investors are on high alert this week as crucial employment data is set to be released. The ADP report and the Labor Department's June employment figures are poised to provide fresh insights into the current state of the job market. Yahoo Finance anchor Josh Lipton joins Wealth! to summarize what is expected from these upcoming reports. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

  • Can AI boom drive Nvidia to a $4tn valuation despite investor doubt?

    Powerful new chips are on the way but there are questions over whether tech firm’s growth can be sustained

  • Zacks Investment Ideas feature highlights: Lululemon, Nike, Ulta Beauty and ON Semiconductor

    Lululemon, Nike, Ulta Beauty and ON Semiconductor are part of the Zacks Investment Ideas article.

  • US manufacturing extends slump; inflation pressures ebbing

    U.S. manufacturing contracted for a third straight month in June as demand remained subdued, while a drop in a measure of prices paid by factories for inputs to a six-month low suggested that inflation could continue to subside. The weakness at the end of the second quarter reported by the Institute for Supply Management on Monday was across the board, with ISM Manufacturing Business Survey Committee Chair Timothy Fiore describing manufacturers as demonstrating "an unwillingness to invest in capital and inventory due to current monetary policy and other conditions." Manufacturing is being pressured by higher interest rates and softening demand for goods, though business investment has largely held up.

  • Questor: This ‘wonder drug’ firm is being backed by top fund managers

    Time waits for no-one.

  • How to navigate CD investments before an interest rate cut

    As interest rates remain high and Wall Street awaits the Federal Reserve's rate cut, Curinos head of wealth Korrynn Baltzersen joins Wealth! to discuss how investors should navigate certificates of deposit (CDs) amid the current economic backdrop. "What we've seen for the first time in recent history is that wealth clients are adopting retail CDs. And what's happening there, at the start of 2023, CDs represented just 3% of wealth deposits. And clients were adopting CDs, about 10% of acquisition balances going into retail CDs. That picked up greatly last year, as you could get to a 5% handle on a CD, there's something in the mentality of an investor that 5% seems great. And so even wealth clients started adopting CDs at a much higher pace," Baltzersen explains. She notes that historically when the Federal Reserve has started cutting interest rates, "that's when the market outperformance led more investors into the market versus keeping that money in cash." She believes there will be a "real shift" once investors can no longer get a 5% handle, as "they can just get a higher yield in the market." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl

  • Meta stock dips after allegedly breaching EU antitrust rules

    Shares of Meta (META) are dipping after European Union regulators issued a preliminary finding accusing the company of violating the Digital Markets Act. The antitrust issue in question is the company's recently introduced ad-supported social networking service. Yahoo Finance Reporter Dan Howley joins Catalysts to analyze the European regulatory agency's preliminary finding and what it means for Meta moving forward. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

  • Wall Street slips and Europe rises as US manufacturing grows for second month

    The S&P Global PMI reading for US manufacturing expanded to a three-month high of 51.6 in June.

  • French market leaps amid hopes Le Pen will fall short of outright victory

    Euro rises against dollar as far right makes gains but investors believe result could have been worse

  • Northern Data considers AI unit US IPO at up to $16 billion, Bloomberg News reports

    The company, which provides infrastructure for high-performance computing, plans to enlist an entity comprising its cloud computing unit Taiga, and data centers, called Ardent, on the Nasdaq stock exchange as early as the first half of next year, according to the report. After two sub-par years, the U.S. IPO market has shown signs of promise in 2024, with investors showing renewed interest in fresh listings buoyed by hopes of a soft landing for the economy. AI-based startups have also attracted huge investments fueled by burgeoning demand in artificial intelligence following the launch of OpenAI's ChatGPT.

  • Oil: Middle East disruptions could push prices to $90

    Oil prices (BZ=F, CL=F) move a notch higher Monday ahead of the July Fourth weekend and the broader summer driving season. Could geopolitical tensions in the Middle East and seasonal factors push crude oil even higher? Lipow Oil Associates President Andy Lipow communicates oil market concerns around potential escalations in these Middle East conflicts and how OPEC+ can continue to constrain supply. "It's easy to see that OPEC+ has surprised the market before, they could do it once again. If crude oil prices were to remain in the $80 per barrel range, they could extend those voluntary production cuts through the end of the year," Lipow tells The Morning Brief. "But the initial announcement from OPEC+ was reacted [to]quite bearishly with the oil market as they saw more supply coming on to the market sooner than expected." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.