Friday, June 23, 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), Starbucks Corporation (SBUX) and Equinor ASA (EQNR). 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 (+70.4% vs. +46.2%), reflecting the company’s leverage to strong demand for AI chips by hyperscalers, service providers and enterprises.

Networking remained strong as the company witnessed strong growth from the deployment of Tomahawk 5 for data center switching at hyperscale customers and Jericho routing platforms for telecommunication providers. Broadband benefited from continued deployments by telecommunication providers of next-gen 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E.

Broadcom expects networking revenues to be strong and grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year. However, 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 Starbucks have outperformed the Zacks Retail - Restaurants industry over the past year (+31.9% vs. +27.2%). The company is benefiting from solid growth in all its operational segments along with impressive revenue recovery from China after COVID-19.

Improving customer experience with innovative new store designs and upgraded product offerings, and supply-chain efficiencies bode well for the company.

Also, the company’s focus on product innovation and store growth adds to its growth. However, increased expenses and inflation are major concerns to the company’s growth trend.

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

Shares of Equinor have underperformed the Zacks Oil and Gas - Refining and Marketing industry over the past year (-2.8% vs. +9.4%). The company’s balance sheet has significant exposure to debt compared with the composite stocks in the industry. Also, rising exploration expenses will continue to hurt the energy major’s bottom line. As such, the stock warrants a cautious stance.

Nevertheless, Equinor is one of the premier integrated energy companies, with operations across 30 countries. In offshore activities, the integrated energy major completed five exploration wells in the fourth quarter. Along with it, the company made one commercial discovery.

Equinor kept its production growth expectations at 3% for 2023. To combat climate change, the company is actively investing in renewable energy projects, comprising power generation from solar and wind energy. Equinor’s better-than-expected quarterly earnings were aided by higher daily production of liquids and gas.

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

Other noteworthy reports we are featuring today include Roper Technologies, Inc. (ROP), General Mills, Inc. (GIS) and Realty Income Corporation (O).

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>>>