For Immediate Release
Chicago, IL – November 29, 2023 – 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: Microsoft Corp. MSFT, Broadcom Inc. AVGO, Wells Fargo & Co. WFC, Arista Networks, Inc. ANET and Aflac Inc. AFL.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Microsoft, Broadcom and Wells Fargo
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 Microsoft, Broadcom Inc. and Wells Fargo & Co. 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 >>>
Microsoft shares have outperformed the Zacks Tech sector in the year-to-date period (+58.5% vs. +45.6%) on the back of the company's perceived leadership in the AI space. The company’s first-quarter results gained from strong Intelligent Cloud and Productivity and Business Processes revenues. Intelligent Cloud revenues were driven by growth in Azure and other cloud services.
Productivity and Business Processes revenues rose due to a strong adoption of Office 365 Commercial solutions. Continued strength in the small and medium businesses, frontline worker offerings and a gain in revenue per user were key growth drivers.
However, Office's declining commercial licensing has been a headwind as customers shift to cloud offerings. Steady growth in Dynamics products and cloud services aided LinkedIn revenues. Higher operating expenses driven by marketing, LinkedIn and cloud engineering amid intense competition in the cloud space remain a concern.
(You can read the full research report on Microsoft here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+73.1% vs. +57.3%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.
Broadcom 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’s prospects.
Expanding portfolio with the launch of the 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.
(You can read the full research report on Broadcom here >>>)
Wells Fargo shares have outperformed the Zacks Banks - Major Regional industry over the year-to-date period (+7.4% vs. +1.1%). The company divested around $2 billion of private equity investments in certain funds to a group of leading investors. Further, Wells Fargo and Centerbridge Partners formed a strategic relationship to provide direct lending to non-sponsor middle-market companies in North America.
Progress on efficiency initiatives continue to propel expense control and savings, which will drive its bottom line. A strong deposit balance aids the bank’s liquidity position and thus supports capital deployment moves. Also, a decline in originations will limit mortgage banking income.
However, declining loan balance and volatile fee income will likely affect revenue growth in the near term.
(You can read the full research report on Wells Fargo here >>>)
Other noteworthy reports we are featuring today include Arista Networks, Inc. and Aflac Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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