On Dec 24, Zacks Investment Research upgraded Broadcom Corp to a Zacks Rank #1 (Strong Buy). This semiconductor manufacturer was upgraded on the back of its solid third quarter 2013 results and new technology adoption in emerging markets.
Why the Upgrade?
Aided by a notable increase in revenue, Broadcom reported GAAP net income of $316 million or 55 cents per share in third quarter 2013 versus $220 million or 38 cents a share in the year-ago quarter. The year-over-year jump in earnings was primarily attributable to a better-than-expected performance across the board.
The company is well-positioned in the fast-growing wired and wireless communications markets, with cutting-edge solutions for an increased number of connected users that require more content and bandwidth.
Broadcom expects a steady momentum in broadband in the coming quarters, driven by more market penetration in emerging markets and new technology adoption in developed markets. The company intends to work diligently to deliver healthy LTE (Long Term Evolution) revenues in early 2014, while focusing on data center innovation and next generation home video products with HEVC (High Efficiency Video Coding). Broadcom expects total revenue to be in the range of $2.0 billion to $2.05 billion in fourth quarter 2013. Earlier, Broadcom expected total revenue to be around $1.975 billion.
In addition, Broadcom continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and improve overall power efficiency. The innovative technologies related to connectivity, bandwidth and content enable the company to capture a sizeable market share.
Based in Irvine, CA, Broadcom primarily designs and markets semiconductor components that are used in various applications in network voice, video, and data traffic.
Other stocks that look promising and are worth a look in the industry include Marvell Technology Group Ltd (MRVL - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Ikanos Communications, Inc and CGI Group, Inc (GIB - Free Report) , both carrying a Zacks Rank #2 (Buy).