Wednesday, May 11, 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), PepsiCo, Inc. (PEP), and Cisco Systems, Inc. (CSCO). 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 >>>
 

Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the past year (+35.9% vs. +12.2%). The Zacks analyst believes that the company is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals. It is benefiting from a diverse customer base, which helped to distribute one billion Wi-Fi 6/6E chips over the past three years.
 

The company is also expected to benefit from the world’s first complete end-to-end chipset solutions for the Wi-Fi 7 ecosystem. In the server storage connectivity domain, much of the growth is anticipated to be driven by the continued recovery of enterprise IT spending deployed toward upgrading computer services.
 

An upbeat second-quarter fiscal 2022 guidance based on a strong uptick in broadband, networking and wireless revenues is encouraging. However, increasing competition along with high debt levels are persistent overhangs.
 

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

Shares of PepsiCo have outperformed the Zacks Beverages - Soft drinks industry over the past year (+21.0% vs. +13.4%). The company’s revenues and earnings beat the Zacks Consensus Estimate and improved year over year in the first quarter. This marked the 15th straight quarter of sales beat.

The Zacks analyst believes that the company is benefiting from the resilience and strength of global beverage and convenient food businesses. It expects to benefit by delivering convenience, variety, and value proposition to customers through its brands.
 

It raised its revenue view for 2022. However, PepsiCo witnessed margin pressures in the first quarter driven by impacts of supply-chain disruptions and inflationary labor, transportation, and commodity costs. PEP anticipates incremental input cost inflation for the balance of 2022.
 

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

Cisco shares have declined -1.4% over the past year against the Zacks Computer - Networking industry’s gain of -2.2%. The Company’s management cautioned that component shortages and ongoing supply chain issues are expected to persist in the rest of fiscal 2022 and bump up costs. This is likely to dent revenues and margin expansion.
 

However, the Zacks analyst believes that the company’s performance is benefiting from strength in its product portfolio, customer segments, and momentum in product order growth. Strength in Webscale business and solid uptake of switching solutions, especially Catalyst 9000 and Meraki offerings, along with robust adoption of the company’s subscription-based offerings were tailwinds.
 

The company is also benefiting from healthy uptake of identity and access, advanced threat, and unified threat management security solutions amid high growth in Internet traffic. The buyout of Acacia Communications bodes well for the long haul.
 

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

Other noteworthy reports we are featuring today include Medtronic plc (MDT), EOG Resources, Inc. (EOG), and Pioneer Natural Resources Co. (PXD).
 
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>>>