Thursday, November 18, 2021

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 Visa Inc. (V), Broadcom Inc. (AVGO), and Morgan Stanley (MS). 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 Visa have outperformed the Zacks Financial Transaction Services industry over the past year (-0.6% vs. -17.1%). The Zacks analyst believes that Visa continues to benefit from the acquisition of Visa Europe, steadily increasing business volumes, and a solid balance sheet. Numerous buyouts and alliances have paved the way for long-term growth and consistently driven revenues.

Continued efforts to remain technologically updated have solidified Visa’s position in the payments market. The shift to the digital mode of payment is another positive. High operating expenses and ramped-up client incentives, however, have been weighing on the margins. Amazon's decision to pull the plug off Visa credit cards in the U.K. from next year is another major concern.

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

Broadcom shares have gained 33.1% in the year to date period against the Zacks Electronics - Semiconductors industry’s gain of +39.4%, but things seem to be improving for it. The Zacks analyst believes that Broadcom has been benefiting from its expanding product portfolio, multiple target markets, accretive acquisitions and strong cash flow.

In third quarter of fiscal 2021, AVGO’s revenues benefited from higher demand for wireless solutions as well as the momentum in networking and broadband solutions. Synergies from acquisitions of CA and Symantec’s enterprise security business also aided results. Customer concentration, intensifying competition, and integration risks due to frequent acquisitions, however, continue to stress Broadcom’s margins.

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

Shares of Morgan Stanley have gained +15.2% in the past six months against the Zacks Investment Banking industry’s gain of +6.8%. The Zacks analyst believes that Morgan Stanley has been focusing less on the capital markets-driven revenue sources. This is evident from the acquisitions of Eaton Vance and E*Trade Financial.

Increasing focus on corporate lending, however, is expected to keep supporting its financials. Robust capital deployment activities indicate balance sheet strength. Uncertainties related to capital markets remain a major concern for Morgan Stanley though. Persistently increasing expenses are also expected to hurt the bottom line in the near term.

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

Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), Sanofi (SNY) and MercadoLibre, Inc. (MELI).

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>>>