Thursday, May 21, 2020
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 Intel Corp. (INTC), Adobe Inc. (ADBE) and Advanced Micro Devices, Inc. (AMD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Intel’s shares have outperformed the broader S&P 500 index over the past year (+43.4% vs. +4.0%). In fact, Intel’s first-quarter results reflect gains across both PC-centric and Data-centric domains. Robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers is expected to drive near-term growth.
The company is also making advancements in the IoT space, courtesy of product introductions and tie ups. Moreover, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU.
However, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak in China remain concerns.
Adobe’s shares have gained +36.1% over the past one-year period against the Zacks Computer - Software industry’s increase of +25.9%. The Zacks analyst believes that Adobe is benefiting from strong demand for its creative products. The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.
Further, rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds.
However, the company has given weak guidance for the current quarter due to coronavirus scare which might delay enterprises booking decisions, reduce marketing spending and hurt consulting service implementations.
AMD’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+105.7% vs. +30.8%). The Zacks analyst believes that AMD’s first-quarter results benefited from robust adoption of Ryzen, Radeon and latest second-gen EPYC server processors.
Further, accelerated adoption of AMD’s products in the data center industry is a key catalyst. Moreover, the growing clout of GPUs owing to increasing adoption of AI techniques and ML tools in industries like cloud gaming and supercomputing domain holds promise.
However, increasing expenses on product development amid stiff competition from NVIDIA and Intel are likely to dent profitability in the near future.
Other noteworthy reports we are featuring today include Mylan N.V. (MYL), Wynn Resorts, Ltd. (WYNN) and Everest Re Group, Ltd. (RE).
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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>>>