Yahoo Finance Top Stock Reports for Apple, Broadcom & Adobe
Monday, November 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 Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). 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 >>>
Apple shares have only modestly done better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12.
Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment.
The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.
(You can read the full research report on Apple here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.
Broadcom 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’s prospects.
Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to 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.
(You can read the full research report on Broadcom here >>>)
Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.
Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat.
The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Marsh & McLennan Companies, Inc. (MMC) and Enbridge Inc. (ENB).
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Strong Demand for Networking Products Aids Broadcom (AVGO)
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Featured Reports
NextEra (NEE) Gains from Steady Investment, Renewable Focus
Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.
Marsh & McLennan (MMC) Strategic Buyouts Aid, Expenses High
Per the Zacks analyst, a number of acquisitions help Marsh & McLennan expand geographically, and diversify its portfolio. Yet, escalating expenses continue to weigh down margins.
Enbridge (ENB) Gains On Long-term Transportation Contracts
Enbridge generates stable fee-based revenues from its long-term oil and gas transportation contracts. Yet, its significant debt exposure concerns the Zacks analyst.
Solid Net Sales Orders Aid D.R. Horton (DHI), High Costs Ail
Per the Zacks analyst, increased net sales orders and affordability initiatives aid D.R. Horton. However, inflated costs and high mortgage rates mar prospects.
Solid In-force Business Aids Reinsurance Group (RGA)
Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earning
Qorvo (QRVO) Rides on Healthy Demand, Portfolio Strength
Per the Zacks analyst, rising demand for key components across the android smartphone ecosystem and healthy traction in automotive, defense and aerospace will likely boost Qorvo's margins.
Under Armour's (UAA) Direct-To-Consumer Unit Performs Well
Per the Zacks analyst, Under Armour's direct-to-consumer (DTC) business is exhibiting strength and aiding its overall performance. DTC revenues increased 3% during second-quarter fiscal 2024.
New Upgrades
Strong Booking Trends Aid Royal Caribbean's (RCL) Prospects
Per the Zacks analyst Royal Caribbean is benefiting from solid bookings with respect to North America and European sailings. Also, strong pricing and solid onboard spending bodes well.
End-Market Strength to Aid Applied Industrial (AIT)
Per the Zacks analyst, strength across the food and beverage, lumber and wood, mining, pulp and paper among other end markets bodes well for the company. Acquired assets are driving the top line.
Xifaxan Boosts Bausch (BHC), Efforts to Restructure Look Good
Per the Zacks analyst, Bausch maintains momentum on strong growth of Xifaxan. The company's efforts to restructure business by separating eye health business and reduce debt are encouraging.
New Downgrades
Weakness in Construction Materials Unit Hurts Carlisle (CSL)
Per the Zacks analyst, Carlisle is struggling with the poor performance of the Carlisle Construction Materials segment due to project delays and uncertainty caused by higher interest rates.
Higher Costs, Geopolitical Woes Hurt Moelis & Company (MC)
Per the Zacks analyst, elevated costs due to Moelis & Company's hiring spree and rising inflation will hurt profits. Geopolitical and macroeconomic concerns add to ambiguity in the operating backdrop.
Softness in Biopharma Business Impede Bio-Rad (BIO) Growth
The Zacks analyst is worried about Bio-Rad witnessing reduced demand from biopharma customers for its process chromatography resins.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Enbridge Inc (ENB) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
