Monday, March 7, 2022
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 American Express Company (AXP). 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 provide a good blend of defense and long-term growth that has proved invaluable in the ongoing market turmoil. The stock has held its own, down only -8.1% in the year-to-date period vs. -9.2% decline for the S&P 500 index and -15.9% decline for the Zacks Tech sector.
Apple’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints, per the Zacks analyst.
Mac had a terrific quarter driven by strong demand for newly redesigned MacBook Pro powered by M1 chip. However, iPad sales were hurt by supply-chain constraints. Apple did not provide revenue guidance for the second quarter of fiscal 2022, given the uncertainty around the impact of the pandemic.
Nevertheless, Apple expects to achieve solid year-over-year revenue growth and set a second quarter revenue record despite significant supply constraints, which it estimates to be less than the fiscal first quarter. App Store, Cloud Services, Music, advertising and AppleCare will continue to drive Services growth.
(You can read the full research report on Apple here >>>)
Shares of Broadcom have outperformed the Zacks Electronics – Semiconductors industry over the past year (+41.4% vs. +24.2%). The Zacks analyst believes that Broadcom is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals.
In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions and continued momentum in networking and broadband solutions. Networking was driven by routing from service providers in the expansion of 5G networks for backhaul, metro, and call, as well as major share gains in ethernet network interface controllers within data centers.
Synergies from acquisitions of CA and Symantec’s enterprise security business aided results. Further, an upbeat first quarter guidance on strong uptick in broadband, networking and wireless revenues is encouraging. However, increasing competition along with high debt levels are persistent overhangs.
(You can read the full research report on Broadcom here >>>)
Shares of American Express have outperformed the Zacks Financial – Miscellaneous Services industry over the past year (+15.1% vs. +1.8%). The Zacks analyst believes that several growth initiatives, such as launching products, enhancing the existing features, reaching new agreements and forging alliances are boosting the company’s results.
Consumer spending on travel and entertainment, which carry higher margins for AmEx, is advancing well. Its balance sheet looks solid with manageable debt. Solid cash generation abilities bode well through which business investments and capital deployment can be undertaken. However, with increasing utilization of its cards, expense in the form of card member services and card member rewards is likely to go up. Marketing and business development expense is expected to rise as well, hurting the bottom line.
(You can read the full research report on American Express here >>>)
Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), TC Energy Corporation (TRP) and Restaurant Brands International Inc. (QSR).
Sheraz Mian
Director of Research
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)
Broadcom (AVGO) Rides on Strong Demand for Wireless Products
Growing Top-line Aids AmEx (AXP), Escalating Expenses Hurt
Featured Reports
Immunogen’s (IMGN) Pipeline Development Holds Potential
ImmunoGen’s (IMGN) lead candidate shows promise in ovarian cancer treatment. However, the Zacks analyst feels concerned that the company lacks any other strong candidates in its pipeline.
Customer Growth, Investment Aid Pinnacle West Capital (PNW)
Per the Zacks analyst Pinnacle West is gaining from customer additions, which is creating demand. Investment in infrastructure and energy generation is aiding it to serve customers efficiently.
TC Energy’s (TRP) C$24B Growth Projects to Boost Earnings
The Zacks analyst believes that TC Energy’s C$24 billion of growth projects should support its earnings and dividend payouts but is worried over the massive debt of C$37.3 billion.
Passenger Revenues Lift American Airlines (AAL), Costs Hurt
The Zacks analyst likes the uptick in air-travel demand, which improved passenger revenues. High operating costs with oil price moving up is, however, denting the bottom line.
DaVita (DVA) Rides on Dialysis Center Buyouts, Overseas Growth
The Zacks analyst is upbeat about DaVita’s preferred business strategy of acquiring businesses that own and operate dialysis centers. Its steady expansion in international markets raises optimism.
Expansion Efforts to Aid Restaurant Brands (QSR), Traffic Low
Per the Zacks analyst, Restaurant Brands is likely to benefit from unit expansion, re-imaging initiatives, and loyalty program.
Applied Materials (AMAT) Rides on Foundry & Logic Spending
Per the Zacks analyst, solid customer spending in foundry and logic which are required in IoT, communications, 5G, automotive, power and sensor applications is benefiting Applied Materials.
New Upgrades
Dollar Tree’s (DLTR) Real Estate Initiatives Hold Potential
Per the Zacks analyst, Dollar Tree is on track with optimizing its store portfolio through new store openings, renovations, re-banners and closings. Its new H2, Dollar Tree Plus! and Combo Stores hold
Brand Strength & High Demand Aids GIII Apparel’s (GIII) Sales
Per the Zacks analyst, GIII Apparel has been gaining from strong demand in its product assortments and global power brands. This along with solid digital business led to sales growth of 22.8% in Q3.
Kimco (KIM) Poised for Growth With Grocery-Anchored Assets
Per the Zacks analyst, Kimco is poised to grow with premium properties in high-growth areas, diversified tenant base, focus on grocery-anchored centers and mixed-use assets and solid balance sheet.
New Downgrades
Supply-Chain Headwinds & Inflation Hurt Rent-A-Center (RCII)
Per the Zacks analyst, Rent-A-Center has been grappling with inflation and supply-chain hurdles for a while. These coupled with lower government pandemic relief programs hurt fourth-quarter results.
Stiff Competition & High Costs Hurt U.S. Cellular (USM)
Per the Zacks analyst, apart from intense competition, U.S. Cellular is grappling with increasing costs associated with network integration and aggressive equipment pricing.
Weak End-Markets & Higher Costs to Hurt TriMas (TRS)
The Zacks analyst is concerned that TriMas’ top-line will continue to bear the brunt of weakness in aviation market while inflated material costs will hurt its bottom line performance.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Apple Inc. (AAPL): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
TC Energy Corporation (TRP): Free Stock Analysis Report
Restaurant Brands International Inc. (QSR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
