Monday, March 17, 2025

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 Broadcom Inc. (AVGO), JPMorgan Chase & Co. (JPM) and Qualcomm Inc. (QCOM). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Turn Green for St Patrick's Day

Today's Featured Research Reports

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+58.8% vs. +17%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth.

Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation.

Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in fiscal second quarter is expected to contract sequentially on unfavorable revenue and product mix. High debt level is a headwind.

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

Shares of JPMorgan Chase have gained +23.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +25.4%. The company’s Strategic buyouts, branch openings and decent loan demand will aid the company. With interest rates likely to remain high for longer, its net interest income (NII) will get support.

The Zacks analyst expects NII (managed) to show a CAGR of 3.4% by 2027. Yet, the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. Our estimate for non-interest income indicates an 11.6% fall in 2025. As it invests heavily in technology and marketing, expenses are expected to remain elevated.

Our estimates for non-interest expenses reflect a CAGR of 2.5% by 2025. Weak asset quality is worrisome. However, a resurgence in deal-making activities and a solid pipeline will drive the investment banking (IB) business. We expect IB fees to grow at a CAGR of 7.6% by 2027.

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

Qualcomm's have underperformed the Zacks Electronics - Semiconductors industry over the past year (-4.4% vs. +17%). The company is also facing challenges from low-cost chip manufacturers like MediaTek and Rockchip. Moreover, the majority of its customers include Chinese manufacturers, which further clouds the revenue-generating potential owing to strained bilateral trade relationships with the United States.

Also, Apple’s move towards designing its chip in-house will likely have a negative impact on Qualcomm’s profit. Nevertheless, Qualcomm is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.

With the accelerated rollout of 5G technology, it is benefiting from investments toward building a licensing program in mobile. The acquisition of Veoneer, Inc. has significantly strengthened QCOM’s position in the emerging market of driver-assistance technology.

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

Other noteworthy reports we are featuring today include ONEOK, Inc. (OKE), Robinhood Markets, Inc. (HOOD) and Omnicom Group Inc. (OMC).

Mark Vickery
Senior Editor

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

Strong Demand for Networking Products Aids Broadcom (AVGO)

Buyouts, Rates, Solid IB Business & Loans Aid JPMorgan (JPM)

Qualcomm (QCOM) Rides on Portfolio Strength and AI Focus

Featured Reports

Midstream Assets & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will drive its performance.

Omnicom (OMC) Gains From Diversification, Competition High
Per the Zacks analyst, Omnicom's presence across diverse segments of the advertising and marketing industry broadens its revenues base. Rising competition is an overhang.

United Therapeutics' (UTHR) PAH Portfolio Drives Top Line
The Zacks Analyst believes that demand for United Therapeutics' PAH medicines is strong. Potential approvals for expanded use of Orenitram and Tyvaso and its pipeline can drive long-term growth

Antero Midstream's (AM) Stable Fee-Based Earnings Aid Growth
Antero Midstream generates stable fee-based revenues under long-term contracts by providing midstream services to Antero Resources. However, its significant debt burden concerns the Zacks analyst.

Strategic buyouts & Contract Flows Aid Dycom (DY), Costs Ail
Per the Zacks analyst, Dycom is befitting from strategic acquisitions, strong growth in the telecom business and continuous contract flow. However, high costs are a concern.

Solid Growth of Digital Platform Aids Western Union (WU)
Per the Zacks Analyst, the company's digital platform has been adding customers and strengthening business. Streamlining of business operations will help it to focus on core competencies.

Robust Testing Sales, LT Growth Drivers Aid Veracyte (VCYT)
Per the Zacks analyst, the robust volume growth of Veracyte's Afirma and Decipher tests is backed by its ease of use. Progress with long-term (LT) growth drivers look promising.

New Upgrades

Acquisitions, Product Expansion Efforts Aid Robinhood (HOOD)
Per the Zacks analyst, strategic acquisitions, product diversification initiatives, a global expansion plan, rising retail participation and a solid balance sheet will support Robinhood's financials.

Sprouts Farmers' (SFM) Omnichannel Offering to Propel Sales
Per the Zacks analyst, Sprouts Farmers' focus on providing hassle-free shopping through omnichannel offering and a network of fresh distribution centers bode well. Net sales rose 17.5% Y/Y in Q4.

Viavi (VIAV) Rides on Healthy Demand and Strategic Buyout
Per the Zacks analyst, solid traction in the Network Enablement segment is expected to drive Viavi's top line. The acquisition of Spirent's ethernet testing business will boost commercial prospects.

New Downgrades

Cobre Panama Output Halt, High Cost Ail Franco-Nevada (FNV)
Per the Zacks analyst, the production halt in Cobre Panama mine has been impacting Franco-Nevada's top-line. Elevated energy costs also remain a woe.

American Eagle (AEO) Struggles With Numerous Challenges
Per the Zacks analyst, American Eagle has been witnessing a tough consumer and macroeconomic operating landscape. Revenues are likely to decline in the mid-single digits for first-quarter fiscal 2025.

Carter's (CRI) Witnesses Inflation Pressures & Other Woes
Per Zacks analyst, Carter's has been witnessing the impacts of inflation and recession risks which are affecting its top line. Increased selling, general and administrative costs are other concerns.

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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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