Monday, November 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 Apple Inc. (AAPL), Broadcom Inc. (AVGO) and Adobe Inc. (ADBE). 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 >>>

Apple shares have only modestly done  better than the Zacks Tech sector this year (+43.4% vs. +41.3%), but they have handily outperformed the broader market (+43.4% vs. +16% for the S&P 500 index). The company expects iPhone and Services’ year-over-year growth to accelerate in the fiscal fourth quarter compared with the June quarter. Apple launched four new iPhone models at its product launch event on Sep 12.

Demand for the high-end iPhone 15 Pro Max is strong as shipment delivery has reportedly slipped to mid-November. It also upgraded Airpods and made iOS 17, watchOS 10, iPadOS 17 and tvOS 17 available. Apple is benefiting from increasing customer engagement in the services segment.

The expanding content portfolio of Apple TV+ and robust adoption of Apple Pay and Apple Arcade are helping drive subscriber growth. However, revenues for both Mac and iPad are expected to decline double digits on a year-over-year basis in the fiscal fourth quarter due to difficult comparisons.

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

Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+74.4% vs. +54.9%). The company is benefiting from the strong deployment of generative AI by hyperscalers, service providers and enterprises.

Broadcom expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024 compared with an estimated 15% in fiscal 2023 and roughly 10% in fiscal 2022. Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects.

Expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst. Broadcom expects networking revenues to grow nearly 20% year over year in the fiscal third quarter. Server storage connectivity revenues are expected to be up low single digits year over year.

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

Adobe shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+77.5% vs. +51.3%). The company is benefiting from strong demand for its creative products. Its Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth.

Rising subscription revenues and solid momentum across the mobile apps are major positives. Additionally, growth in emerging markets and robust online video creation demand remain tailwinds. Additionally, solid demand for Adobe’s commerce offerings and growing adoption of Acrobat.

The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines and continued innovation. However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. Also, high acquisition expenses do not bode well for its margin expansion.

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

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Marsh & McLennan Companies, Inc. (MMC) and Enbridge Inc. (ENB).

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>>>