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The Zacks Analyst Blog Highlights Applied Materials, Comcast, Synopsys and Hamilton Beach Brands

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For Immediate Releases

Chicago, IL – July 8, 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: Applied Materials, Inc. (AMAT - Free Report) , Comcast Corp. (CMCSA - Free Report) , Synopsys, Inc. (SNPS - Free Report) and Hamilton Beach Brands Holding Co. (HBB - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for Applied Materials, Comcast, Synopsys & More

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 Applied Materials, Inc., Comcast Corp., and Synopsys, Inc., as well a micro-cap stock Hamilton Beach Brands Holding Co. 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 >>>

Applied Materials shares have outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry over the year-to-date period (+50.1% vs. +43.3%). The company is benefiting from strength in the Applied Global Services segment, owing to the growing adoption of the 200-mm system, strong recurring services and rising parts sales. Solid momentum in the subscription and display businesses is a plus.

AMAT remains optimistic about its strategies and investments in IoT and AI. Its strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry in the days ahead. Its broad-based diversified portfolio remains its key growth driver.

However, softness in the Semiconductor Systems segment is a concern. Weakening momentum across Taiwan, Korea, the United States and Europe is a negative. The sluggish demand environment and geo-political tensions are headwinds.

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

Shares of Comcast have declined -13.3% over the year-to-date period against the Zacks Cable Television industry’s decline of -16.7%, signficantly lagging the S&P 500 index's +16.6% gain over the same time period. Weighing on the stock is the 'cloudy' outlook for the media space in the post-streaming environment and persistent 'cord cutting' in the cable business.

On a favorable note, the company is benefiting from growing domestic wireless subscribers in the first quarter. The company’s plan to transition to DOCSIS 4.0 is noteworthy. The technology will expand it much faster and at a lower cost compared with its competitors.

Decreasing programming and production costs bode well for Comcast's profitability. Its streaming service, Peacock, is a key catalyst in driving broadband sales. Recovery in the theme park and movie business bodes well for the company’s profitability. Strong free cash flow generation ability is noteworthy.

Comcast persistently suffers from video-subscriber attrition due to cord-cutting. The broadband user base declined in the reported quarter due to rising competition from fixed wireless as well as fiber. A leveraged balance sheet is a major concern.

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

Synopsys’ shares have outperformed the Zacks Computer - Software industry over the past year (+40.8% vs. +31.5%). The company is benefiting from solid design wins due to a robust product portfolio. Growth in the hybrid working trend is driving demand for bandwidth. Strong traction for Synopsys’ Fusion Compiler product is boosting its top line.

The growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. The rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new compute and machine learning architectures.

However, tightening the corporate budget amid ongoing macroeconomic challenges, along with unfavorable currency exchange rates and stiff competition, might hurt its near-term growth prospects. Geopolitical challenges and restrictions over trade with Huawei are other woes.

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

Shares of Hamilton Beach Brands have outperformed the Zacks Household Appliances industry over the past year (+77.1% vs. -29.4%). This microcap company with market capitalization of $239.21 million has diversified its product portfolio with a focus on innovation and energy efficiency, marketing well-known brands and expanding into health technology.

Financially, HBB has improved its position by reducing debt from $79.3 million to $50 million. The gross profit margin rose significantly to 23.4% in first-quarter 2024, driven by cost efficiencies and favorable product mixes. HBB's recent dividend increase to 11.5 cents per share demonstrates its commitment to shareholder value.

However, revenue growth remained unchanged year over year due to pricing pressures and competitive markets. Supply-chain risks, supplier concentration in China and a centralized distribution strategy expose HBB to operational disruptions. Selling and administrative expenses have risen primarily due to new ventures and higher employee costs.

(You can read the full research report on Hamilton Beach Brands 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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