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Top Research Reports for Broadcom, Comcast & Equinor

Wednesday, September 28, 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 Broadcom Inc. (AVGO), Comcast Corp. (CMCSA) and Equinor ASA (EQNR). 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 >>>

Broadcom shares have declined -5.4% over the past year against the Zacks Electronics - Semiconductors industry’s decline of -22.0%. Increasing competition, along with high debt levels, are persistent overhangs for the company. However, the top-line growth was driven by strength in cloud and service provider segments.

Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth.

Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. Upbeat fourth-quarter fiscal 2022 guidance is encouraging. The VMware acquisition will aid prospects over the long term.

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

Comcast shares have declined -44.8% over the past year against the Zacks Cable Television industry’s decline of -49.0%. The company second-quarter 2022 results reflected slowing broadband user-base additions, primarily due to reversal of pandemic trends and increased competition. It also persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, a leveraged balance sheet is a major concern.

Nevertheless, the company benefited from a growing wireless subscriber base. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy in this regard. The technology will help it in expanding much faster and at a lower cost compared to competitors.

Recovery in park and movie business bodes well for Comcast’s profitability. Its streaming service Peacock is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.

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

Equinor shares have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (+31.2% vs. +15.9%). The company is one of the premier integrated energy companies, with operations spreading across 30 countries. The company reaffirmed production growth expectations at 2% for 2022.

In the second quarter, it made three commercial discoveries on the Norwegian Continental Shelf, making its production outlook bright. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. Also, it announced the increase of the share buy-back program of up to $6 billion for 2022.

However, the company’s balance sheet has significant debt exposure as compared to the composite stocks in the industry. Also, the company is not being able to capture the potential profit growth from commodity prices that have reached record highs. As such, the stock warrants a cautious stance.

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

Other noteworthy reports we are featuring today include Chevron Corp. (CVX), Intuit Inc. (INTU), and Sanofi (SNY).

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

Strong Demand for Networking Products Aids Broadcom (AVGO)

Broadband Subscriber Gain Drives Comcast's (CMCSA) Prospects

Equinor (EQNR) Leads Energy Transitions, Debts Remain High

Featured Reports

Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshesu, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.

Sanofi (SNY) Relies on Dupixent and Vaccines to Drive Growth
Dupixent has become the key top-line driver for Sanofi. The Zacks analyst believes its leading vaccine portfolio has become the primary top-line driver. Its R&D pipeline is strong.

Cigna (CI) Gains From Improving Top Line Amid High Costs
Per the Zacks analyst, Cigna gains from a healthy revenue stream, driven by buyouts and enhanced products suite. However, high costs continue to weigh on margins.

Dividends & Buybacks Boost CSX's Prospects Despite Cost Woes
The Zacks analyst is impressed with CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated fuel costs, are hurting its bottom line.

Las Vegas Sands (LVS) Banks on Macau Business Amid High Debt
Per the Zacks analyst, Las Vegas Sands' planned investment in new capital projects in Macau and improving visitations are likely to drive growth. Yet high debt remains a concern.

Steady Investment & Renewable Focus Aid Eversource (ES)
Per the Zacks analyst, Eversource's investment of $18.1 billion within 2022-2026 time period will boost clean electricity generation, fortify its infrastructure and increase reliability of its service

Loans, Fee Income Aid Prosperity Bancshares (PB), Costs Ail
Per the Zacks analyst, high loan demand, robust fee income growth and a solid balance sheet position will support Prosperity Bancshares amid weakness in mortgage banking business and high costs.

New Upgrades

Chevron (CVX) Boosts Permian Position with Noble Buy
The Zacks analyst believes that Chevron's Noble Energy takeover has expanded its footprint in the lucrative Permian Basin along with the addition of cash-generating offshore assets in Israel.n

Owl Rock (ORCC) to Grow on Acquisitions & New Investments
Per the Zacks analyst, Owl Rock's strategic buyouts will generate substantial additional credit resources. Also, new investment commitments will boost its bottom line.

Rising Farm Income, Infrastructure Demand Aid Lindsay (LNN)
Per the Zacks analyst, Lindsay will gain on improving farm income which will support irrigation equipment demand and the momentum in infrastructure segment backed by demand for Road Zipper projects.

New Downgrades

Qorvo (QRVO) Plagued by Supply Chain Woes, Pricing Pressures
Per the Zacks analyst, Qorvo is likely to be plagued by strained margins driven by intense pricing pressures, COVID mitigation efforts in China, supply chain disruptions and prolonged Ukraine war.

Higher Operating Costs to Hurt Abercrombie's (ANF) Margins
Per the Zacks analyst, Abercrombie's margins have been affected by elevated product costs, digital fulfillment expenses and inflation rate. Higher costs are likely to persist throughout fiscal 2022.

Kohl's (KSS) Hurt by Product Cost Inflation, SG&A Expenses
Per the Zacks analyst, Kohl's gross margin remains troubled by escalated freight expenses and product cost inflation. Higher investments in key strategic initiatives are raising SG&A costs.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sanofi (SNY) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
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