Tuesday, September 6, 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 Visa Inc. (V), Broadcom Inc. (AVGO) and Medtronic plc (MDT). 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 >>>

Visa shares have declined -11.5% over the past year against the Zacks Financial Transaction Services industry’s decline of -28.6%. The stock has modestly outperformed the S&P 500 index over the past year, but has lagged rival Mastercard. While a number of near-headwinds will likely weigh on profitability, the company’s long-term outlook remains favorable.

Numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon.

The coronavirus vaccine rollouts and the gradual revival of consumer confidence will keep driving spending, expanding business volumes in turn. Backed by a strong cash position, the company remains committed to boosting its shareholder value through share buybacks and dividend payments.

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

Broadcom shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+3.5% vs. -15.9%). The company’s top-line growth was driven by strength in cloud and service provider segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers.

Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth. Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. An upbeat fourth-quarter fiscal 2022 guidance is encouraging.

The VMware acquisition will aid prospects over the long term. However, increasing competition, along with high debt levels, are persistent overhangs.

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

Medtronic shares have declined -14.6% over the year-to-date basis against the Zacks Medical - Products industry’s decline of -45.2%. The Zacks analyst believes that the company’s 2023 adjusted earnings will dip 0.4% from the year-ago period on 4.2% revenue growth mostly due to high inflation and supply disruptions. However, in fiscal 2024, adjusted earnings are expected to grow 3.8% on 3.7% growth in revenues. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations.

Nevertheless, Medtronic is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within Cardiovascular, the company is gaining market share, banking on recent product launches. Also within MedSurg, Medtronic is scaling production of Hugo RAS. Innovations and market expansion are the key factors that support our bullish stance on the stock.

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

Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), American Tower Corporation (AMT), and BP p.l.c. (BP).

Sheraz Mian
 
Director of Research

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>>>