Today's Must Read
Disney (DIS) Banks on Disney+ Growth & Reopening of Parks
Broadcom (AVGO) Drives on Wireless Products & Acquisitions
Wednesday, February 16, 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 Apple Inc. (AAPL), The Walt Disney Company (DIS), and Broadcom Inc. (AVGO). 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 Apple have underperformed the Zacks Computer - Mini computers industry over the past year (+32.0% vs. +32.7%), however the company’s first-quarter fiscal 2022 results benefited from strong iPhone sales and continued momentum in the Services business amid significant supply-chain constraints. Mac had a terrific quarter, driven by strong demand for newly redesigned MacBook Pro powered by M1 chip.
At the same time, Apple expects to achieve solid year-over-year revenue growth and set a second quarter revenue record despite significant supply constraints, which it estimates to be less than the fiscal first quarter. The Zacks analyst believes that App Store, Cloud Services, Music, advertising and AppleCare will continue to drive Services growth.
Shares of Walt Disney have outperformed the Zacks Media Conglomerates industry over the past two year period (+10.9% vs. -6.5%). The Zacks analyst believes that Disney benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Moreover, with the launch of STAR+, Disney’s stand-alone general entertainment and sports streaming service in Latin America is expected to boost subscriber growth.
Revival in Parks, Experiences and Products businesses hold promise. Solid performance of Shang Chi and the Legend of the Ten Rings at the box-office and the upcoming releases of The King’s Man and Deep Water are anticipated to aid Studio Entertainment’s top line. However, Disney’s cruise line business remains closed and its re-opened resorts are operating at a lower capacity.
Broadcom shares have gained +25.0% over the past year against the Zacks Electronics - Semiconductors industry’s rise of +11.4%. The Zacks analyst believes that Broadcom is riding on continued strength across both Semiconductor solutions and Infrastructure software verticals. In fourth-quarter fiscal 2021, Semiconductor revenues benefited from higher demand for wireless solutions and continued momentum in networking and broadband solutions.
Networking was driven by routing from service providers in the expansion of 5G networks for backhaul, metro and call, as well as major share gains in ethernet network interface controllers within data centers. Synergies from acquisitions of CA and Symantec’s enterprise security business aided results. Further, an upbeat first quarter guidance on strong uptick in broadband, networking and wireless revenues is encouraging. However, increasing competition along with high debt levels are persistent overhangs.
Other noteworthy reports we are featuring today include American Express Co. (AXP) and Becton, Dickinson and Co. (BDX).
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>>>