Wednesday, May 17, 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 Broadcom Inc. (AVGO), Bank of America Corp. (BAC) and Thermo Fisher Scientific Inc. (TMO). 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 outperformed the Zacks Electronics - Semiconductors industry over the past year (+16.0% vs. +10.3%), though the stock has lagged the industry in the year-to-date period. The company’s top-line growth was driven by strength in networking and server storage. It witnessed strong growth from the deployment of Tomahawk 4 for data center switching at hyperscale customers.

Upgrades of edge and core routing networks with Broadcom’s next-generation Jericho portfolio at cloud and service providers also benefited top-line growth. Broadcom’s storage connectivity gained from substantial content increases at both cloud and enterprise customers.

Broadcom expects fiscal first-quarter networking and server storage revenues to grow 20% and 50% on a year-over-year basis, respectively. The VMware acquisition will boost prospects. However, increasing competition, along with high debt levels, are persistent overhangs.

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

Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past six months (-25.5% vs. -15.9%). The weakening economic backdrop is weighing on the investment banking (IB) business, a trend that is expected to remain in place at least through the remainder of this year. This, along with the volatile nature of the capital markets, will hurt non-interest income. Our estimates for the same show 2.1% rise for 2023.

A tough operating backdrop will lead to higher provisions, with we projecting a substantial jump in the metric this year. Inflationary pressure will result in mounting expenses. According to the Zacks analyst estimates total non-interest expenses implies a rise of 1.9% this year.

However, higher rates and decent loan demand will aid net interest income (NII). The opening of new financial centers and improving digital capabilities will bolster the top line.

(You can read the full research report on Bank of America here >>>)

Shares of Thermo Fisher Scientific have underperformed the Zacks Medical - Instruments industry over the past year (-3.9% vs. +4.9%). The company is witnessing year-over-year decline in revenues in the Life Science Solutions and Specialty Diagnostics segment is disappointing. The contraction of margins does not bode well either.

However, robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments appears promising. During the first quarter, Thermo Fisher launched a range of high-impact, advanced new products, including the Thermo Scientific iCAP RQ Plus ICP-MS Analyzer.

Thermo Fisher Scientific company continued to strengthen its unique customer-value proposition by advancing the strategic partnership with the University of California, San Francisco (UCSF).

(You can read the full research report on Thermo Fisher Scientific here >>>)

Other noteworthy reports we are featuring today include Chubb Limited (CB), Petróleo Brasileiro S.A. - Petrobras (PBR) and Aon plc (AON).

Sheraz Mian
Director of Research

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>>>