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Top Research Reports for BHP Group, HSBC & Qualcomm

Thursday, November 16, 2023

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 BHP Group Ltd. (BHP), HSBC Holdings plc (HSBC) and Qualcomm Inc. (QCOM). 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 >>>

BHP Group's shares have outperformed the Zacks Mining - Miscellaneous industry over the past two years (+15.8% vs. +3.5%). The Zacks analyst believes a potential pickup in iron ore demand in China, owing to a fresh round of stimulus measures for new infrastructure projects, is likely to help the company. Demand in the automotive sector, infrastructure and housing markets will also support prices.

Demand for electric vehicles will fuel copper and nickel prices. BHP’s investment in projects -- with a focus on future-facing commodities like copper, nickel and potash -- are also likely to aid growth.

Throughout this period, the company had been ailing from weak demand in China.

(You can read the full research report on BHP Group here >>>)

HSBC’s shares have outperformed the Zacks Banks - Foreign industry over the past year (+34.6% vs. +12.4%). The Zacks analyst believes a strong capital position, higher interest rates, an extensive network and business restructuring initiatives will keep supporting HSBC’s prospects. Exiting Russia and winding down retail business in France, New Zealand and Canada is unlikely to make an impact because of the company’s primary focus on Asia.

Yet rising operating expenses and tech-related expenses have pushed the company to raise cost guidance this year. The worsening macroeconomic operating backdrop is another major near-term headwind.

(You can read the full research report on HSBC here >>>)

Shares of Qualcomm have outperformed the Zacks Wireless Equipment industry over the past year (+5.0% vs. -4.7%). Per the Zacks analyst, the company is well-positioned to benefit from solid 5G traction, greater visibility and a diversified revenue stream. Strength in the snapdragon portfolio is an additional tailwind. It is focusing on a seamless transition from a wireless communications firm for the mobile industry to a connected processor firm.

However, a challenging macroeconomic environment, inflationary pressures and soft recovery in China have hit the company’s business. Weakness in the smartphone industry and a cautious client approach are weighing on margins. Rising geopolitical conflicts and a high debt burden remain headwinds.

(You can read the full research report on Qualcomm here >>>)

Other noteworthy reports we are featuring today Apple Inc. (AAPL), IBM Corp. (IBM) and Union Pacific Corp. (UNP).

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

Investments to Drive BHP Group (BHP) Amid Price Volatility

Restructuring, Focus on Asia Aid HSBC (HSBC), High Costs Ail

Qualcomm (QCOM) Rides on 5G Traction, Market Diversification

Featured Reports

Nuplazid & Daybue Sales Drive Acadia (ACAD), Spurs Growth
Acadia has been witnessing robust growth in revenues, driven by Nuplazid and Daybue sales. The strong uptake of Daybue has also been easing the burden on Nuplazid sales for revenues.

Acquisitions, Diverse Customer Base Aid NRG Energy (NRG)
Per the Zacks analyst, NRG Energy's organic and inorganic acquisitions, is likely to boost its results. Its diverse customer base and retention of customers increases earnings predictability.

Southern Company (SO) Buoyed by Regulated Customer Growth
The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.

Fiserv (FISV) Gains From Finxact Buyout Amid High Completion
Per the Zacks Analyst, the Finxact acquisition has boosted Fiserv's digital banking strategy and digital banking experiences of its clients. Rising competition from other players is an overhang.

Fortinet (FTNT) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Fortinet is gaining from solid contributions of its growth-oriented products Security Fabric, cloud and SD-WAN. Increasing marketing efforts are also a positive.

Insulet (PODD) Thrives on Increasing uptake of Omnipod 5
The Zacks analyst is optimistic about Insulet's (PODD) Omnipod 5 as it continues to be a driving force of strong U.S. and international growth, representing vast majority of new customer starts.

Solid Expansion Efforts To Aid Hyatt (H), Amid High Costs
Per the Zacks analyst, Hyatt is likely to benefit from loyalty program & strategic initiatives, and expansion efforts. However, a volatile macroeconomic environment is a concern.

New Upgrades

Solid Demand, Pricing Actions Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Cost-reduction initiatives and efforts to preserve liquidity are also driving growth.

Aspen (AZPN) To Benefit From Diversified Product Portfolio
Per the Zacks analyst, Aspen benefits from increased demand for its products across various markets like upstream and midstream energy and refining. Also, synergies from acquisition is a tailwind.

Blue Owl Capital (OBDC) Rides on Investment Income, Buyouts
Per the Zacks analyst, Blue Owl Capital's revenues are driven by higher investment income, thanks to its improved interest income. Buyouts enhance its capabilities and diversify the business.

New Downgrades

Sally Beauty (SBH) Troubled by Inflationary Headwinds
Per the Zacks analyst, Sally Beauty is battling inflationary environment that continue to pressure consumer spending. Management expects first-quarter fiscal 2024 net sales to be down 2% to 4%.

Cost Inflation to Weigh on Diageo's (DEO) Margin Performance
Per the Zacks analyst, continued inflationary pressures from increased glass, paper, metal prices, along with higher energy and transportation expense, are likely to hurt Diageo's fiscal 2024 margins.

Dull Demand & Tight Inventory Ails Newell's (NWL) Performance
Per the Zacks analyst, Newell has been witnessing tight inventory, normalization of category trends and muted demand for discretionary and durable products. This led to sales decline of 9.1% in Q3.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Apple Inc. (AAPL) : Free Stock Analysis Report

International Business Machines Corporation (IBM) : Free Stock Analysis Report

Union Pacific Corporation (UNP) : Free Stock Analysis Report

BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report

HSBC Holdings plc (HSBC) : Free Stock Analysis Report

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Zacks Investment Research