Yahoo Finance Top Analyst Reports for Broadcom, Starbucks & Equinor
Friday, June 23, 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), Starbucks Corporation (SBUX) and Equinor ASA (EQNR). 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 (+70.4% vs. +46.2%), reflecting the company’s leverage to strong demand for AI chips by hyperscalers, service providers and enterprises.
Networking remained strong as the company witnessed strong growth from the deployment of Tomahawk 5 for data center switching at hyperscale customers and Jericho routing platforms for telecommunication providers. Broadband benefited from continued deployments by telecommunication providers of next-gen 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E.
Broadcom expects networking revenues to be strong and grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year. However, 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 Starbucks have outperformed the Zacks Retail - Restaurants industry over the past year (+31.9% vs. +27.2%). The company is benefiting from solid growth in all its operational segments along with impressive revenue recovery from China after COVID-19.
Improving customer experience with innovative new store designs and upgraded product offerings, and supply-chain efficiencies bode well for the company.
Also, the company’s focus on product innovation and store growth adds to its growth. However, increased expenses and inflation are major concerns to the company’s growth trend.
(You can read the full research report on Starbucks here >>>)
Shares of Equinor have underperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (-2.8% vs. +9.4%). The company’s balance sheet has significant exposure to debt compared with the composite stocks in the industry. Also, rising exploration expenses will continue to hurt the energy major’s bottom line. As such, the stock warrants a cautious stance.
Nevertheless, Equinor is one of the premier integrated energy companies, with operations across 30 countries. In offshore activities, the integrated energy major completed five exploration wells in the fourth quarter. Along with it, the company made one commercial discovery.
Equinor kept its production growth expectations at 3% for 2023. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. Equinor’s better-than-expected quarterly earnings were aided by higher daily production of liquids and gas.
(You can read the full research report on Equinor here >>>)
Other noteworthy reports we are featuring today include Roper Technologies, Inc. (ROP), General Mills, Inc. (GIS) and Realty Income Corporation (O).
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
Strong Demand for Networking Products Aids Broadcom (AVGO)
Starbucks (SBUX) Rides on Solid Comps Growth Amid High Costs
Equinor (EQNR) to Benefit From Rising Clean Energy Demand
Featured Reports
Application Software Aids Roper (ROP) Amid Supply Chain Woes
Strength in the Deltek, Vertafore, Aderant and CliniSys businesses within the Application Software unit bodes well for Roper. However, the Zacks analyst is concerned about supply-chain woes.
General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.
Diverse Tenant Base, Investments to Aid Realty Income (O)
Per the Zacks Analyst, Realty Income to benefit from service, non-discretionary and low-price retail business tenants and accretive investments. However, high interest rates are a key concern.
Global Payments (GPN) Grows on Strategic Buyouts, Alliances
Global Payments' acquisitions trigger inorganic growth while its strategic partnerships benefit the products offered. However, rising operating costs concern the Zacks analyst.
Solid Investment Boost First Solar (FSLR), Tariff Impact Woe
Per the Zacks Analyst, First Solar's expansion plan tend to bolster its long-term growth. Yet, termination or reduction in tariffs on silicon solar cells and modules from China may hurt First Solar
Darden (DRI) Banks on Strategic Acquisitions, High Costs Ail
Per the Zacks analyst, Darden is likely to benefit from strategic acquisitions, technological enhancements and solid off-premise business model. However, rise in labor costs are a concern.
Western Digital (WDC) Gains from Demand For Storage Products
Per the Zacks analyst, Western Digital is gaining from demand for WD_BLACK SSD and 22-terabyte CMR products. However, challenging market environment is likely to remain a concern in the near term.
New Upgrades
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Strata, Prisma and Cortex. Increasing marketing efforts are also positive.
HealthEquity (HQY) Continues to Gain From Its Strength in HSA
The Zacks analyst is upbeat about HealthEquity's continued strength in its Health Savings Accounts or HSAs despite its operation in a highly competitive Medical Services market.
Aidvantage, Attain and VES Acquisitions Benefit Maximus (MMS)
Per the Zacks Analyst, the buyout of Aidvantage boosts Maximus' U.S. Federal service segment while Attain enhances its technological capacities. The VES buyout enhances Maximus' clinical offerings.
New Downgrades
Emergent's (EBS) Declining Product Revenues Is a Concern
Per the Zacks analyst, Emergent's declining revenues, owing to a dip in anthrax's delivery & generic launch of Narcan in 2021, is concerning. A further drop in sales can hinder the company's prospects
Magnolia Oil & Gas (MGY) Hurt by Higher Expenses
The Zacks analyst believes that the jump in operating expenses experienced by Magnolia Oil & Gas might pressure its earnings and cash flows.
High Operating Costs & Low Margin Hurt United Natural (UNFI)
Per the Zacks analyst, United Natural's margin contraction, owing to reduced procurement gains, higher shrink expenses, lower inventory gains and supply chain issues, is weighing on its profitability.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
General Mills, Inc. (GIS) : Free Stock Analysis Report
Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Realty Income Corporation (O) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
