Friday, September 2, 2016
Today's must-read reports are for Amgen (NASDAQ:AMGN), HSBC (HSBC) and Broadcom (NASDAQ:AVGO).
Amgen shares have lagged the market lately, as have those of other drug makers, primarily reflecting political risks related to drug pricing issues. This macro cloud notwithstanding, the analyst likes the large number of blockbuster drugs in Amgen’s portfolio which bodes well for its future growth. Moreover, contribution from new products should be meaningful this year. Additionally, Amgen’s restructuring plan should make it leaner and more cost-efficient. (You can read the full research report on Amgen here>>)
Zacks # 2 (Buy) rated Broadcom shares have been strong performers this year (up more than 20% year-to-date) on greater appreciation for the chipmaker's robust organic growth outlook. The analyst likes the synergistic benefits gained from the merger with Avago. Such gains are likely to increase future profitability through economies of scale and mutual sharing of manufacturing expertise and R&D costs. Additionally, Broadcom maintains an efficient global supply chain with a variable, low-cost operating model. (You can read the full research report on Broadcom here>>)
HSBC Holdings (LON:HSBA) is one of the largest European banks, but it's primarily an Asian operator, with a majority of its recent earnings coming from that region. European banks have been laggards lately and HSBC is no different, though it has been doing better lately on the back of better execution of its restructuring plan that essentially involves reducing the bank's footprint in some regions in order to focus more on its core Asian franchise. The recent sale of its Brazilian operations and using the sale procedes for share buybacks are part of that strategy. Management's committment to maintain and raise the dividend (currently yielding a juicy 5.5%) and cost saving initiatives are some of the positives in the HSBC story. (You can read the full research report on HSBC here>>)
Other noteworthy reports we are featuring today include NVIDIA (NASDAQ:NVDA), Infosys (INFY), and Campbell Soup (CPB).
You can find all of today's stock research reports here >>
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Sheraz Mian
Director of Research
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Today's Must Read
Featured Reports
Ventas (VTR) Closes Wexford Assets Buyout, Rate Issues Remain
The Zacks analyst thinks that a diversified healthcare portfolio and the buyout of Wexford's life science and medical real estate promise growth.
NVIDIA (NVDA) Riding on Innovative Product Pipeline
The covering analyst thinks NVIDIA's sustained focus on the development of innovative products for the gaming, datacenter and automobile sectors is encouraging.
Trimble Navigation (TRMB) Marginally Beats on Q2 Earnings
The Zacks analyst believes the Q2 earnings beat along with expectations of improvement in engineering and construction market bode well.
Stratasys' (SSYS) Q2 Earnings & Revenues Decline Y/Y
The covering analyst thinks the sustained focus on launching new products and entering into strategic partnerships will drive long-term growth.
Campbell Soup's (CPB) Q4 Earnings Suffer First Miss in a Decade
The Zacks analyst believes fourth quarter results were hurt by weakness in Campbell Fresh, currency woes and soft margins.
Universal Forest (UFPI) to Boost Growth Potential with idX Corp Buy
The covering analyst thinks the acquisition of the custom merchandising solutions provider will add new product portfolio and new customer base to the company's existing businesses.
Copart (CPRT) Opens New Location in Colorado
The Zacks analyst thinks Copart is benefiting from several tailwinds such as rising revenues, declining expenses and geographic expansion.
New Upgrades
VeriSign (NASDAQ:VRSN) to Benefit from Renewals and Price hike
According the Zacks analyst, renewal of the .com contract, price hikes for the .com/.net domain names and the introduction of new gTLDs are big positives, which should boost VeriSign's revenues.
VeriFone (PAY) Tops Q3 Earnings But Sales Lag
The Zacks analyst believes that despite the near term revenue weakness, VeriFone is expected to benefit from the ongoing restructuring over the long run.
Veeva (VEEV) Tops Q2 Earnings, Product Launch Adds Value
The covering analyst thinks stellar Q2 results are due to solid subscription revenues and the new launches in the Vault and Cloud Platforms. This is expected to continue in the long run.
New Downgrades
Infosys' (INFY) Prospects Marred by Slowdown in IT Spending
The covering analyst thinks a slowdown in consulting firm spending, coupled with rising competition from cloud-based enterprise solutions, has been hurting Infosys' traditional outsourcing business.
Flattish Growth at Bell to hurt Textron's (NYSE:TXT) Profitability
The Zacks analyst believes that soft V-22 Osprey shipments and weakness in the global commercial helicopter market will affect segment revenues in 2016.
Higher Compliance Costs to Hurt Xcel Energy's (NYSE:XEL) Margins
The covering analyst believes that compliance with stringent environmental regulations are likely to increase Xcel Energy's operating expenses, thereby impacting future margins.
NVIDIA CORP (NVDA): Free Stock Analysis Report
INFOSYS LTD (INFY): Free Stock Analysis Report
HSBC HOLDINGS (HSBC): Free Stock Analysis Report
CAMPBELL SOUP (CPB): Free Stock Analysis Report
BROADCOM LTD (AVGO): Free Stock Analysis Report
AMGEN INC (AMGN): Free Stock Analysis Report
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