Monday, February 13, 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 Intel Corporation (INTC), Synopsys, Inc. (SNPS) and FedEx Corporation (FDX). 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 >>>

Shares of Intel have underperformed the Zacks Semiconductor - General industry over the past year (-41.6% vs. -14.8%). The company is facing uncertainty over the over-supplied chip markets that are weighing on its near-term outlook. More than other players in the space, the market is skeptical of Intel's ability to profitably operate and execute in this unfavorable environment. In addition, production delays remain a concern for the company.

Imposition of fresh lockdown restrictions in some markets, forex woes and high debt burden are other headwinds. It is witnessing intensifying competition in the server, networking and storage markets, while inflated raw material costs and signs of market saturation are worrisome. The Sino-US trade war is also adversely impacting its growth prospects.

However, Intel is gaining rapid strides in the data center business with integrated solutions that are highly competitive in prices. The company is also focusing on developing a complete product range targeting different segments of the market.     

(You can read the full research Intel here >>>)

Synopsys shares have outperformed the Zacks Computer - Software industry over the past year (+21.8% vs. -10.5%). The company is benefiting from strong design wins owing to a robust product portfolio. Growth in hybrid working trend is driving demand for bandwidth. Strong traction for Synopsys’ Fusion Compiler product boosted the top line.

Growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. Rising impact of artificial intelligence, 5G, internet of things and big data is driving investments in new compute and machine learning architectures. Our estimates suggest that Synopsys’ revenues will grow at a CAGR of 9.3% through 2023-2025.

However, Synopsys is hurting from supply-chain disruptions stemming from the pandemic. The company is also witnessing stiff competition. Geopolitical challenges coupled with uncertainties related to restrictions over trade with Huawei are other woes.

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

Shares of FedEx have declined -8.4% over the past year against the Zacks Transportation - Air Freight and Cargo industry’s decline of -13.0%. The company’s volumes are being hurt due to the decline in shipping demand, particularly in Asia and Europe. Weakening of e-commerce demand as economies re-open is another concern.

To navigate the weaker-than-expected business environment, FDX is actively cutting costs. FedEx anticipates generating cost savings of nearly $3.7 billion in fiscal 2023. The fiscal 2023 estimate for capital expenditure has been slashed by $400 million to $5.9 billion.

However, efforts to reward shareholders of FDX, through dividends and buybacks, are encouraging as well. In June 2022, FedEx raised its quarterly dividend by 53% to $1.15 per share. During fiscal 2022, FedEx repurchased shares worth $2.2 billion. FedEx's liquidity position is also impressive.

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

Other noteworthy reports we are featuring today include CNH Industrial N.V. (CNHI), First Solar, Inc. (FSLR) and Synchrony Financial (SYF).

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>>>