Yahoo Finance Top Stock Reports for Applied Materials, Comcast & Synopsys
Friday, July 5, 2024
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. (AMAT), Comcast Corporation (CMCSA) and Synopsys, Inc. (SNPS), as well a micro-cap stock Hamilton Beach Brands Holding Company (HBB). 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 >>>)
Other noteworthy reports we are featuring today include Devon Energy Corporation (DVN), Telefonaktiebolaget LM Ericsson (ERIC) and Citizens Financial Group, Inc. (CFG).
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>>>
Today's Must Read
Applied Materials (AMAT) Rides on Strength in AGS Segment
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Synopsys (SNPS) Banks on Strong Product Menu, Contract Wins
Featured Reports
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.
Ericsson (ERIC) Rides on Robust Portfolio, Cost Discipline
Per the Zacks analyst, a comprehensive wireless equipment portfolio, cost optimization initiatives and improvement in operational efficiency will likely boost Ericsson's margin.
Acquisitions to Aid Citizens Financial (CFG), High Costs Ail
Per the Zacks analyst, Citizens Financials' buyouts enable it to expand its product and fee-generation capabilities and geographic reach. Yet, rising expenses are set to affect the bottom line.
Solid In-force Business Aids Reinsurance Group (RGA)
Per the Zacks analyst, Reinsurance Group is set to benefit from better pricing and expanding business in the pension risk transfer market. Solid in-force business ensures predictable long-term earning
Generics Business Boost Dr. Reddy's (RDY), Competition a Woe
Per the Zacks Analyst, Dr. Reddy's enjoys a strong foothold in the generics market with new product launches and pending filings. However, increasing competition in the generics market is concerning.
Service Corporation (SCI) Gains on Robust Cemetery Segment
Per the Zacks analyst, Service Corporation is gaining on solid Cemetery sales for a while. During first-quarter consolidated Cemetery revenues increased 5.2% year over year to $440.6 million.
Test Volumes Aid Myriad Genetics (MYGN) Amid Stiff Rivalry
he Zacks analyst is impressed with Myriad Genetics rising testing volumes, reflecting market share gains and ongoing initiatives to improve average revenue per test. Stiff rivalry remains a concern.
New Upgrades
Solid Backlog and Strategic Investments Aid MasTec (MTZ)
Per the Zacks analyst, MasTec benefits from strong backlog and solid communications business pipeline. Also, focus on strategic investments for portfolio diversification bodes well.
Kirby (KEX) Benefits From Share Buyback and Solid Cash Flow
Per the Zacks analyst, rewarding shareholders through share buybacks boosts investor confidence and positively impacts Kirby's bottom line. KEX's strong cash flow generating ability looks encouraging.
SM Energy's (SM) Robust Eagle Ford & Permian Presence Aids
Per the Zacks analyst, SM Energy's strategic expansion in Texas, particularly in the Permian and Eagle Ford regions, signals growth, leveraging its assets to capitalize on crude price uptrends.
New Downgrades
Lower Rig Count to Hurt Helmerich & Payne (HP)
The Zacks analyst believes that the fall in U.S. oil and natural gas rig count indicates a drop in future drilling services. This might erode Helmerich & Payne's revenues and cash flows.
Lower Volumes and High Costs Ail Rockwell Automation (ROK)
Per the Zacks Analyst, low volume and organic sales are affecting Rockwell Automation's results. High costs continue to be a headwind.
Soft Sales Trends & High Expenses Ail JAKKS Pacific (JAKK)
Per the Zacks analyst, JAKKS Pacific's growth prospects are hurting from a declining sales trend, primarily in North America, increased expenses, and a declining liquidity position.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
Ericsson (ERIC) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report
Hamilton Beach Brands Holding Company (HBB) : Free Stock Analysis Report