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The Zacks Analyst Blog Highlights Qualcomm, Alibaba, HSBC and PrimeEnergy Resources

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For Immediate Release

Chicago, IL – June 20, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Qualcomm Inc. (QCOM - Free Report) , Alibaba Group Holding Ltd. (BABA - Free Report) , HSBC Holdings plc (HSBC - Free Report) and PrimeEnergy Resources Corp. (PNRG - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Research Reports for Qualcomm, Alibaba and HBSC

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 Qualcomm Inc., Alibaba Group Holding Ltd. and HSBC Holdings plc, as well a micro-cap stock PrimeEnergy Resources Corp. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

Qualcomm's shares have outperformed the Zacks Wireless Equipment industry over the past year (+86.6% vs. +24.1%). The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge. This augurs well for the long-term growth.

Qualcomm is benefiting from healthy traction in Android handsets and automotive businesses, with the development of Snapdragon Dev Kit for Windows in collaboration with Microsoft likely boosting its commercial prospects in the AI PC market. The Snapdragon X Series Platform integrated with Qualcomm AI Hub is also witnessing significant market traction among leading global PC manufacturers.

However, inventory corrections by clients are impeding sales in the IoT business. Increasing competition in the mobile phone chipset market is likely to strain margin. Rising geopolitical instability and high debt obligation remain concerns.

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

Shares of Alibaba have underperformed the Zacks Internet - Commerce industry over the year-to-date period (-3.9% vs. +15.0%). The company's rising expenses related to new initiatives are a concern. Macroeconomic uncertainties and unfavorable foreign exchange fluctuations remain risks.

Nevertheless, Alibaba is benefiting from strong momentum across its international commerce retail business. Solid combined order growth in AIDC's retail businesses and strength in AliExpress' Choice are contributing well. Growing international commerce wholesale business, thanks to strength in cross-border-related value-added services, is a tailwind.

Expanding China's wholesale commerce business remains a major positive. Robust local consumer services and Cainiao logistics services are further driving top-line growth. Strength in Lazada, AliExpress and Trendyol is expected to continue benefiting Alibaba's international business.

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

Shares of HSBC have gained +12.1% over the past year against the Zacks Banks - Foreign industry's gain of +24.1%. The company's strong capital position, higher interest rates, an extensive network and business restructuring initiatives will keep aiding it.

The company has exited retail operations in the United States, Canada, France, New Zealand, Greece and Russia. Moreover, in order to focus more on Asia, HSBC completed the acquisition of Citigroup's wealth business in China.

However, HSBC's first-quarter 2024 results were hurt by higher expenses. While the company's efforts to improve market share in the Asia region will support financials in the long run, this will likely lead to a rise in near-term expenses.

Because of its growth strategy and higher technology-related expenses, HSBC expects 2024 expense growth of 5%. The current tough macroeconomic backdrop is another major headwind.

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

PrimeEnergy's shares have gained +18.4% over the past year against the Zacks Oil and Gas - Exploration and Production - United States industry's gain of +24.1%. This microcap company with market capitalization of $184.75 million exhibits strong buy indicators, doubling production year over year in first-quarter 2024, with oil rising 123% year over year and gas growing 44%, boosted by effective drilling and new wells.

Revenues soared 88% year over year to $42.99 million, fueled by high oil prices and production increases. Strategic asset acquisitions expanded PNRG's operational footprint and diversified its revenue streams. The company plans to complete 54 horizontal wells in 2024, investing $140 million, promising growth.

However, liquidity concerns arise with cash reserves dropping to $1.8 million and increasing long-term debt sequentially. Heavy reliance on high-capital horizontal drilling and oil price vulnerability pose significant risks. Technological lags and the shift toward renewable energies may further challenge PNRG's market position.

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

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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