Today's Must Read
Broadcom (AVGO) Drives on Wireless Products & Acquisitions
Shell (RDS.A) to Benefit from LNG Demand Growth
Tuesday, January 18, 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 Bank of America Corp. (BAC), Broadcom Inc. (AVGO), and Royal Dutch Shell plc (RDS.A). 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 Bank of America have outperformed the Zacks Major Regional Banks industry over the past year (+48.2% vs. +36.4%). The Zacks analyst believes that Efforts to improve revenue growth, strong balance sheet and expansion into new markets will support Bank of America.
Opening of new branches, enhancing digital capabilities, initiatives to manage expenses, and a solid IB pipeline are likely to continue supporting its financials. BAC will keep enhancing shareholder value through impressive capital deployment activities. A low interest rate environment, however, is likely to keep hurting Bank of America's margins in the near-term.
Broadcom shares have gained +17.6% over the past three months against the Zacks Electronics - Semiconductors industry’s gain of +14.2%. The Zacks analyst believes that Broadcom has been benefiting from continued strength across both Semiconductor solutions and Infrastructure software verticals.
In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions as well as momentum in networking and broadband solutions. Synergies from acquisitions of CA and Symantec’s enterprise security business also aided results. An upbeat first quarter guidance on the back of an uptick in broadband, networking and wireless revenues bodes well for the long term.
Shares of Royal Dutch Shell have gained +38% in the last six months against the Zacks International Integrated Oil industry’s gain of +36.1%. The Zacks analyst believes that Shell is set to witness capital appreciation on the back of a slew of tailwinds.
RDS.A recently pledged to return $5.5 billion from the Permian sale proceeds via buybacks. This follows $1.5 billion worth of share repurchases in December. It should also benefit from its position as a key supplier of liquefied natural gas. Shell is also poised for long-term cash flow growth on the back of attractive growth opportunities.
Other noteworthy reports we are featuring today include Morgan Stanley (MS), Automatic Data Processing, Inc. (ADP) and Vertex Pharmaceuticals Inc. (VRTX).
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>>>