For Immediate Release
Chicago, IL – June 24, 2022 – 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: Tesla, Inc. TSLA, Broadcom Inc. AVGO, Anthem, Inc. ANTM, Oracle Corp. ORCL and Danaher Corp. DHR.
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for Tesla, Broadcom and Anthem
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 Tesla, Inc., Broadcom Inc., and Anthem, Inc. 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 >>>
Tesla shares have been hit hard in the ongoing market turmoil, as have most growth stocks given their exposure to rising interest rates. But the stock has held up better than the peer group, handily outperforming the Zacks Automotive - Domestic industry over the past year (+2.2% vs. -25.7%). The company is riding high on the soaring popularity of its Models 3 and Y.
The Zacks analyst expects deliveries to see an annualized growth of around 50% over the next three years. High volumes are also aiding Tesla in achieving production efficiencies, thereby strengthening gross margins. Ex-government credits, Tesla's gross margins reached 30% in Q1. This indicates that the supply-chain issues hitting the company are being passed along to the consumer.
Additionally, Tesla's energy generation and storage revenues outlook is promising. While low Q2 deliveries from the Shanghai gigafactory could be a short-term headwind, we expect Tesla to deliver outsized returns in the long run on the back of production ramp-up and introduction of new models.
(You can read the full research report on Tesla here >>>)
Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+9.2% vs. -5.5%) on the back of strength in networking and server storage segments. Networking is riding on the 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 third-quarter networking and server storage revenues to grow more than 25% and 60% on a year-over-year basis, respectively. An upbeat third-quarter fiscal 2022 guidance is encouraging. Recently announced VMware acquisition will aid prospects over the long term. Shares have outperformed the industry year to date. However, increasing competition, along with high debt levels, are persistent overhangs.
(You can read the full research report on Broadcom here >>>)
Anthem shares have outperformed the Zacks Medical - HMOs industry over the past year (+26.4% vs. +19.6%). The company's improving top-line can be attributed to a premium rate increase and higher memberships. Acquisitions and collaborations have enabled the company to boost its Medicare Advantage growth and strengthen its business portfolio. Its well-performing Medicare and Medicaid businesses, coupled with several contract wins, are expected to drive its membership.
A solid earnings guidance for 2022 bodes well. Its shareholders have approved Anthem's name change to Elevance Health. Anthem's consistent dividend payouts and stock repurchases boost shareholder value. However, escalating costs continue to put pressure on Anthem's bottom line. Its weak balance sheet with massive debts of nearly $20 billion can affect financial flexibility. As such, the stock warrants a cautious stance.
(You can read the full research report on Anthem here >>>)
Other noteworthy reports we are featuring today include Oracle Corp. and Danaher Corp.
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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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