Monday, January 15, 2024

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 Advanced Micro Devices, Inc. (AMD), Abbott Laboratories (ABT) and QUALCOMM Incorporated (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 >>>

AMD shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+106.4% vs. +80.8%). The company is benefiting from portfolio strength and an expanding partner base. Strong demand for EPYC processors has been a growth driver.

The launch of the Ryzen 8040 series processor with Ryzen AI and Instinct MI300 Series data center AI accelerators bodes well for top-line growth. AMD continues to benefit from acquisitions, including Xilinx and Pensando, which has diversified its business. For fourth-quarter 2023, AMD expects to witness year-over-year growth in the Data Center and Client segments by double-digit percentage.

Sequentially, the Data Center segment’s revenues are expected to grow on a double-digit percentage, while Client is expected to increase. However, weakness in the Gaming and Embedded segment revenues are expected to hurt top-line growth.

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

Shares of Abbott Laboratories have outperformed the Zacks Medical - Products industry over the past six months (+7.6% vs. +0.6%). The company is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets.

Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region. Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.

However, a steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China continue to impede overall growth in Nutrition.

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

QUALCOMM shares have outperformed the Zacks Wireless Equipment industry over the past year (+19.7% vs. +6.6%). The company is focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.

The company is witnessing a solid momentum in IoT and remains well poised to benefit from solid 5G traction, greater visibility and a diversified revenue stream. Strength in the snapdragon portfolio is an additional tailwind as exemplified by the multi-year Apple deal for 5G modems for iPhones and the launch of Snapdragon 7 Gen 3 chipsets with advanced AI features for mid-range smartphones.

However, inflationary pressures and soft recovery in China have resulting in lower-than-expected demand and elevated inventory levels. Weakness in the smartphone industry and cautious client approach are also weighing on margins. Rising geopolitical conflicts and high debt burden are other headwinds.

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

Other noteworthy reports we are featuring today include Morgan Stanley (MS), United Parcel Service, Inc. (UPS) and Intuitive Surgical, Inc. (ISRG).

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>>>