Top Analyst Reports for Broadcom, Amgen & NVIDIA
Tuesday, June 18, 2019
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 (AVGO), Amgen (AMGN) and NVIDIA (NVDA). 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 (BMY), Marathon Petroleum (MPC) and Restaurant Brands (QSR).
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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
The Zacks analyst believes that focus on franchising should reduce Restaurant Brands' capital requirements and facilitate earnings growth. However intense competition remains a potential headwind.
While the company faces headwind from high production costs, it should gain from investment in its growth projects and efforts to improve efficiency, per the Zacks analyst.
The Zacks Analyst expects Essex Property to benefit from strong property base in West Coast, solid balance sheet, favorable demographics, healthy economy and job gains. Yet, high supply is a worry.
Per the Zacks analyst, DISH's focus on retaining DISH TV subscriber base is paying off, as reflected by lower churn rate.
Per the Zacks analyst, W.R. Berkley is poised for growth given several new startup units in varied business lines in growing international markets.
Per the Zacks analyst, Donaldson stands to gain from solid product portfolio and capital expenditure used for capacity expansion.
Per the Zacks analyst, Greif is benefiting from Caraustar acquisition, focus on operational execution and its strong and diverse product portfolio despite higher debt.
The Zacks analyst believes that Marathon Petroleum's acquisition of Andeavor has integrated the premier assets of both, bolstering the scale and leadership position of the combined entity.
The Zacks analyst believes that Aptiv's investments in advanced technology and collaborations will help it make the most of the opportunities offered by the rapidly evolving automotive sector.
Per the Zacks analyst, high end-market demand for biopharmaceuticals will continue driving Haemonetics' plasma unit growth. The ongoing development and rollout of NexSys PCS should complement growth.
Per the Zacks analyst, while blockbuster immuno-oncology drug, Opdivo maintains momentum, pipeline setbacks and competition weigh on the stock. The Celgene acquisition looks risky as well.
The Zacks analyst is concerned about the high operating expenses, which are weighing on ZTO Express' bottom line. Sharp rise in SG&A expenses is escalating total costs.
Per the Zacks analyst, lululemon expects soft gross margins in second-quarter owing to potential tariffs impact and additional airfreight costs to avoid the anticipated congestion at ports in Asia.
Restaurant Brands International Inc. (QSR): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Marathon Petroleum Corporation (MPC): Free Stock Analysis Report
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
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