Wednesday, December 9, 2020
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), Infosys Limited (INFY) and The Blackstone Group Inc. (BX). 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 underperformed the Zacks Electronics – Semiconductors industry in the year to date period (+34.0% vs. +54.5%). The Zacks analyst believes that anticipated sluggishness in enterprise demand might impact the company’s server storage revenues. Moreover, efforts to reduce channel inventory amid COVID-19 crisis-induced market uncertainty and increasing lead times, is likely to weigh on industrial revenues.
However, Broadcom is poised to benefit from robust adoption of Wi-Fi 6 in access gateway, and cable DOCSIS 3.1 products. Acceleration in 5G deployment, significant production ramp up and increase in radio frequency (RF) content favors prospects. Further, synergies from acquisitions of CA and Symantec’s enterprise security business are anticipated to bolster the company’s presence in the infrastructure software vertical.
(You can read the full research report on Broadcom here >>>)
Infosys shares have outperformed the Zacks Computers – IT Services industry in the year to date period (+55.1% vs. +40.0%). The Zacks analyst believes that Infosys is gaining from large deal wins and fast-growing digital services. The company’s sustained focus on Agile Digital and artificial intelligence (AI) -driven Core services is a tailwind. Strong demand for its services in cloud, Internet of Things (IoT), cyber security, data and analytics is a key driver. Higher investments by clients in digital transformation, AI and automation are an upside.
However, Infosys is suffering from increasing anti-outsourcing sentiments in certain countries. Higher subcontractor costs and the company’s compensation revision with a higher variable pay and incentives are weighing on margins.
(You can read the full research report on Infosys here >>>)
Shares of Blackstone have gained +11.6% in the year to date period against the Zacks Financial – Investment Management industry’s increase of +16.4%. The Zacks analyst believes that continuously increasing expenses (mainly owing to higher general and administrative costs) are expected to hamper the bottom line to some extent in the near term. Additionally, lower chances of sustainability of the company’s capital deployment activities due to volatile earnings are a major concern.
However, the company remains well-positioned to benefit from its fund-raising ability, revenue mix, persistent asset inflows and inorganic growth initiatives. Moreover, its transition from a publicly traded partnership to a corporation is expected to help attract more investors.
(You can read the full research report on Blackstone here >>>)
Other noteworthy reports we are featuring today include Equifax Inc. (EFX) and CenterPoint Energy, Inc. (CNP).
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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
Broadcom (AVGO) Drives on Wireless Products & Acquisitions
Digital Transformation, AI Proliferation Aid Infosys (INFY)
Strong AUM Growth Supports Blackstone (BX), Huge Debt Hurts
Featured Reports
Recent Drug Approvals Should Drive Bausch (BHC) Amid Pandemic
Per the Zacks analyst, the performance of durable brands fuels Bausch (BHC) amid the pandemic even as prescription products lag. Bausch’s move to separate its eye care business is positive.
Multi-basin Portfolio, Low Cost Asset Aid Murphy Oil (MUR)
Per the Zacks analyst Murphy Oil’s maintenance of a multi-basin portfolio boosts production and low cost operating assets in North America will drive operation.
Equifax (EFX) Benefits from Acquisitions, Debt Woes Remain
The Zacks Analyst is impressed with Equifax’s strategic initiatives for product innovation and expansion of data assets through acquisitions.
Portfolio Strength, Growing Customer Base Aid NETGEAR (NTGR)
Per the Zacks analyst, strong demand for connected home products with increasing work-from-home trend and healthy subscriber additions are likely to boost NETGEAR’s growth momentum.
Nordstrom’s (JWN) Cost-Savings Plan on Track to Aid Growth
Per the Zacks analyst, Nordstrom is tracking ahead of its $750 million in annual cash savings target for 2020 on strong execution of its plans to create a leaner and more efficient organization.
Robust Off-Premise Sales Aid Cracker Barrel, Traffic Woes Stay
Per the Zacks analyst, Cracker Barrel will continue to benefit from robust off-premise sales, continuous expansion strategy and sales building initiatives.
System Modernization Aids CenterPoint (CNP), High Debt Hurts
Per the Zacks analyst, system modernization initiatives and operational expansion will fuel company’s growth.
New Upgrades
Acquisitions Aid Acadia Healthcare’s (ACHC) Revenue Growth
Per the Zacks analyst, Acadia Healthcare has been emphasizing on acquisitions for expedited growth. These buyouts have added facilities, beds and hospitals to its network and aided its top line.
Toyota (TM) to be Driven by Robust Electrification Efforts
Toyota’s collaborations with Subaru, Mazda and Hino to fuel its e-mobility prospects have made the Zacks analyst bullish on the stock.
Product Differentiation & LoRa business Aids Semtech (SMTC)
Per the Zacks analyst, Semtech is riding on the momentum in IoT, data center and mobile markets driven by its product differentiation strategy. Also, well-performing LoRa business is a major positive.
New Downgrades
Eni’s (E) Refining Throughput Volumes Continue to Decline
A persistent decline in refining throughputs – especially in Italy – reflects Eni’s weak refining business, which concerns the Zacks analyst.
Adverse Forex Hurts Inogen’s (INGN) International Revenues
Per the Zacks analyst, adverse foreign currency rates, due to the strengthening of the U.S. dollar as against the Euro and other foreign currencies, might hurt Inogen’s international revenues.
Lyft (LYFT) Plagued By Coronavirus-Led Low Ride Volumes
With coronavirus confining people to their homes, the Zacks analyst is concerned about the significant downturn in Lyft’s operations due to low ride volumes.
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Lyft, Inc. (LYFT): Free Stock Analysis Report
Infosys Limited (INFY): Free Stock Analysis Report
Equifax, Inc. (EFX): Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
Blackstone Group IncThe (BX): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
