Thursday, November 16, 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 BHP Group Ltd. (BHP), HSBC Holdings plc (HSBC) and Qualcomm Inc. (QCOM). 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 >>>

BHP Group's shares have outperformed the Zacks Mining - Miscellaneous industry over the past two years (+15.8% vs. +3.5%). The Zacks analyst believes a potential pickup in iron ore demand in China, owing to a fresh round of stimulus measures for new infrastructure projects, is likely to help the company. Demand in the automotive sector, infrastructure and housing markets will also support prices.

Demand for electric vehicles will fuel copper and nickel prices. BHP’s investment in projects -- with a focus on future-facing commodities like copper, nickel and potash -- are also likely to aid growth.

Throughout this period, the company had been ailing from weak demand in China.

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

HSBC’s shares have outperformed the Zacks Banks - Foreign industry over the past year (+34.6% vs. +12.4%). The Zacks analyst believes a strong capital position, higher interest rates, an extensive network and business restructuring initiatives will keep supporting HSBC’s prospects. Exiting Russia and winding down retail business in France, New Zealand and Canada is unlikely to make an impact because of the company’s primary focus on Asia.

Yet rising operating expenses and tech-related expenses have pushed the company to raise cost guidance this year. The worsening macroeconomic operating backdrop is another major near-term headwind.

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

Shares of Qualcomm have outperformed the Zacks Wireless Equipment industry over the past year (+5.0% vs. -4.7%). Per the Zacks analyst, the company is well-positioned to benefit from solid 5G traction, greater visibility and a diversified revenue stream. Strength in the snapdragon portfolio is an additional tailwind. It is focusing on a seamless transition from a wireless communications firm for the mobile industry to a connected processor firm.

However, a challenging macroeconomic environment, inflationary pressures and soft recovery in China have hit the company’s business. Weakness in the smartphone industry and a cautious client approach are weighing on margins. Rising geopolitical conflicts and a high debt burden remain headwinds.

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

Other noteworthy reports we are featuring today Apple Inc. (AAPL), IBM Corp. (IBM) and Union Pacific Corp. (UNP).

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>>>