Thursday, July 13, 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), Intuit Inc. (INTU) and Intuitive Surgical, Inc. (ISRG). 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 (+90.3% vs. +66.2%). The company is benefiting from strong deployment of generative AI by hyperscalers, service providers and enterprises. It 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. Expanding portfolio with the launch of second-gen Wi-Fi 7 wireless connectivity chip is a catalyst.

However, server storage connectivity revenues are expected to be up low single digits year over year. Broadband revenues growth is expected in moderate to low-single-digit percent year over year.

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

Shares of Intuit have gained +26.5% over the past year against the Zacks Computer - Software industry’s gain of +37.4%. The company is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues.

The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.

However, macroeconomic and geopolitical headwinds might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.

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

Intuitive Surgical shares have outperformed the Zacks Medical - Instruments industry over the past year (+70.1% vs. +16.8%) reflecting the company's solid operating momentum. The company reported encouraging first-quarter results, wherein earnings and revenues beat estimates. The da Vinci procedure volume continued its recovering trend of 2022 into the first quarter of 2023, which is likely to persist for the rest of the year.

Improving procedure volume along with better system placements and services across all markets will drive top-line growth in 2023. Intuitive Surgical witnessed healthy customer demand for its products in the quarter under review. Its Ion platform has strong growth potential. A stable liquidity position is an added plus.

However, higher component and labor costs, and a strong U.S. dollar continues to hurt gross margin. Stiff competition in the global MedTech space and rising costs remain concerns for Intuitive Surgical.

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

Other noteworthy reports we are featuring today include AT&T Inc. (T), Shopify Inc. (SHOP) and Intercontinental Exchange, Inc. (ICE).

Director of Research

Sheraz Mian

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>>>