The Zacks Analyst Blog Highlights: Broadcom, Amgen, NVIDIA, Bristol-Myers and Restaurant Brands
For Immediate Release
Chicago, IL – June 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Broadcom AVGO, Amgen AMGN, NVIDIA NVDA, Bristol-Myers BMY and Restaurant Brands QSR.
Here are highlights from Tuesday’s Analyst Blog:
Top Analyst Reports for Broadcom, Amgen and NVIDIA
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, Amgen and NVIDIA. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Broadcom's shares have underperformed the Zacks Electronics - Semiconductors industry over the past year, gaining +9.1% vs. a +13.4% increase. Broadcom reported mixed second-quarter results, wherein the bottom line surpassed expectations, but the top line missed the same.
Notably, revenues increased on a year over year basis. The Zacks analyst thinks the company is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers.
Further, Broadcom is a leading player in the semiconductor market based on its multiple target markets, accretive acquisitions and strong cash flow. However, the company lowered its fiscal 2019 revenues outlook. Further, intensifying competition, integration risks and leveraged balance sheet adds to the woes.
Shares of Amgen have gained +4.6% year to date, underperforming the Zacks Biomedical and Genetics industry's increase of +10.2%. The Zacks analyst thinks that while Amgen's newer drugs — Prolia, Xgeva, Blincyto, Kyprolis — will drive sales, biosimilar and brand competition faced by its legacy products will create pressure on the top line in 2019.
Meanwhile, uptake of key drug Repatha has been slow due to payer restrictions. However, recently launched products including Aimovig, biosimilars and international expansion provide incremental growth opportunities. Amgen is also progressing with its pipeline and the approval of Evenity was a boost.
In the past five years, Amgen has launched nine products, including two in new therapeutic areas. Amgen boasts a strong biosimilars pipeline, which could be an important long-term growth driver. Amgen's restructuring plan is making it leaner and more cost efficient.
NVIDIA's shares have underperformed the Zacks General Semiconductor industry over the past year (down -44.3% vs. -21.5%). The Zacks analyst thinks NVIDIA has been making concerted efforts to strengthen its position in the several emerging markets. Growth across Professional Visualization and Automotive segments is expected to be a key catalyst.
Increasing deal wins for autonomous vehicle development and the solid uptake of AI-based smart cockpit infotainment solutions are a tailwind. Further, the company's latest acquisition of Mellanox is likely to be its main driver as it will fortify its datacenter footprint and lend a competitive edge. Rising traction of GeForce laptops and RTX GPUs in the market is a positive.
However, weakness in the data center business persists to be an overhang. A pause in hyperscale spending and softness in demand from some enterprise clients remain major concerns. Further, CPU shortages are a drag on gaming business.
Other noteworthy reports we are featuring today include Bristol-Myers and Restaurant Brands.
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Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Restaurant Brands International Inc. (QSR): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
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