Top Research Reports for Apple, Broadcom & Caterpillar
Wednesday, August 30, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Caterpillar Inc. (CAT). 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’s shares have outperformed the Zacks Computer - Mini computers industry over the year-to-date period (+42.3% vs. +42.0%). The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth-quarter as compared with the June quarter.
However, weak hardware demand for iPhone, iPad and Mac have declined sales. Revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt the top-line.
(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 (+61.2% vs. +47.1%). The company is benefiting from strong deployment of generative AI by hyperscalers, service providers and enterprises. It 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. Expanding portfolio with the launch of 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. Broadband revenues growth is expected in moderate to low-single-digit percent year over year.
(You can read the full research report on Broadcom here >>>)
Caterpillar’s shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past six months (+13.8% vs. +12.6%). The company’s revenues and earnings has grown year over year for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of the supply chain snarls and cost pressures.
The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.
Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.
(You can read the full research report on Caterpillar here >>>)
Other noteworthy reports we are featuring today include Suncor Energy Inc. (SU), ONEOK, Inc. (OKE) and STERIS plc (STE).
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
Strong Demand for Networking Products Aids Broadcom (AVGO)
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Featured Reports
Suncor (SU) Supported by Integrated Business Model
The Zacks analyst believes that Suncor's integrated business model puts it in a good position to generate significant cash flow but the company's extreme vulnerability to oil prices is a risk.
Investments & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will drive its performance.
Procedure Recovery Aids STERIS (STE), Dental Arm Sales Dip
The Zacks Analyst is impressed with STERIS' Healthcare business gaining from procedure volume rebound, improving supply chain and reduced lead times. Yet, mounting costs are weighing on margins.
Verisk Financial Buyout Aid TransUnion (TRU), Liquidity Low
Per the Zacks Analyst, the acquisition of Verisk Financial is helping TransUnion to offer enhanced insights and solutions, improve fraud prevention and risk management. Low liquidity remains a concern
Qorvo (QRVO) Rides on Solid Portfolio, Integrated Solutions
Per the Zacks analyst, Qorvo is likely to benefit from a comprehensive portfolio with solid foundation in radio frequency and power management solutions that deliver efficient semiconductor solutions.
New Upgrades
Robust Ticket Sales Boosts Live Nation's (LYV) Prospects
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, solid ticket sales and sponsorship business. Also, focus on strengthening of client base bode well.
Domino's (DPZ) Banks on Comps Growth & Expansion Initiatives
Per the Zacks analyst, Domino's is benefiting from solid comps growth backed by digital ordering system, higher global retail sales and menu additions. Also, expansion initiatives bode well.
New Downgrades
Repligen (RGEN) Faces Declining Demand For COVID-19 Products
Per the Zacks Analyst, Repligen's revenues in 2023 is being negatively impacted by the declining demand for COVID-19 products. Competition in the bioprocessing market is also a concern.
Weak EVM Unit and Forex Woes Hurt Zebra Technologies (ZBRA)
Per the Zacks analyst, Zebra Technologies is experiencing weakness across its EVM segment due to weakness in the mobile computing market. Forex woes are an added concern for the company.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>Apple Inc. (AAPL) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
ONEOK, Inc. (OKE) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
