Yahoo Finance Top Analyst Reports for Intel, Synopsys & FedEx
Monday, February 13, 2023
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 Intel Corporation (INTC), Synopsys, Inc. (SNPS) and FedEx Corporation (FDX). 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 >>>
Shares of Intel have underperformed the Zacks Semiconductor - General industry over the past year (-41.6% vs. -14.8%). The company is facing uncertainty over the over-supplied chip markets that are weighing on its near-term outlook. More than other players in the space, the market is skeptical of Intel's ability to profitably operate and execute in this unfavorable environment. In addition, production delays remain a concern for the company.
Imposition of fresh lockdown restrictions in some markets, forex woes and high debt burden are other headwinds. It is witnessing intensifying competition in the server, networking and storage markets, while inflated raw material costs and signs of market saturation are worrisome. The Sino-US trade war is also adversely impacting its growth prospects.
However, Intel is gaining rapid strides in the data center business with integrated solutions that are highly competitive in prices. The company is also focusing on developing a complete product range targeting different segments of the market.
(You can read the full research Intel here >>>)
Synopsys shares have outperformed the Zacks Computer - Software industry over the past year (+21.8% vs. -10.5%). The company is benefiting from strong design wins owing to a robust product portfolio. Growth in hybrid working trend is driving demand for bandwidth. Strong traction for Synopsys’ Fusion Compiler product boosted the top line.
Growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. Rising impact of artificial intelligence, 5G, internet of things and big data is driving investments in new compute and machine learning architectures. Our estimates suggest that Synopsys’ revenues will grow at a CAGR of 9.3% through 2023-2025.
However, Synopsys is hurting from supply-chain disruptions stemming from the pandemic. The company is also witnessing stiff competition. Geopolitical challenges coupled with uncertainties related to restrictions over trade with Huawei are other woes.
(You can read the full research report on Synopsys here >>>)
Shares of FedEx have declined -8.4% over the past year against the Zacks Transportation - Air Freight and Cargo industry’s decline of -13.0%. The company’s volumes are being hurt due to the decline in shipping demand, particularly in Asia and Europe. Weakening of e-commerce demand as economies re-open is another concern.
To navigate the weaker-than-expected business environment, FDX is actively cutting costs. FedEx anticipates generating cost savings of nearly $3.7 billion in fiscal 2023. The fiscal 2023 estimate for capital expenditure has been slashed by $400 million to $5.9 billion.
However, efforts to reward shareholders of FDX, through dividends and buybacks, are encouraging as well. In June 2022, FedEx raised its quarterly dividend by 53% to $1.15 per share. During fiscal 2022, FedEx repurchased shares worth $2.2 billion. FedEx's liquidity position is also impressive.
(You can read the full research report on FedEx here >>>)
Other noteworthy reports we are featuring today include CNH Industrial N.V. (CNHI), First Solar, Inc. (FSLR) and Synchrony Financial (SYF).
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
Intel (INTC) Likely to Gain from Healthy Mobileye Traction
Synopsys (SNPS) Banks on Strong Product Menu, Contract Wins
FedEx (FDX) Benefits From Dividends & Buyback, Expenses Ail
Featured Reports
Strategic Buyouts to Aid CNH Industrial (CNHI) Amid Debt Woes
While buyouts of Raven Industries and Sampierana will boost CNH Industrial's prospects, the Zacks analyst is concerned over the firm's elevated leverage of 76%.
Strong Investments Boost First Solar (FSLR) Growth Prospects
Per the Zacks Analyst, First Solar's expansion plan in terms of manufacturing capacity will it to duly achieve these targets. This in turn should bolster its long-term growth trajectory.
Synchrony Financial (SYF) Gains on Buyouts, Balance Sheet
Per the Zacks Analyst, buyouts have enhanced the company's capabilities and diversified the business, which, in turn, has offered it a competitive edge. A healthy balance sheet enables investments.
Lamar (LAMR) to Grow on Portfolio Upgradation and Expansion
Per the Zacks Analyst, Lamar's portfolio upgradation efforts will aid raise display occupancy and advertising rates while strategic buyouts bode well. However, stiff competition from peers is a woe.
GSG Segment to Benefit Tetra Tech (TTEK) Amid Forex Woes
Per the Zacks analyst, solid traction of Tetra Tech's Government Services Group (GSG) Segment, led by robust water and environmental programs should drive its growth. Forex woes are an added concern.
National Vision (EYE) Store Growth Solid Amid Stiff Rivalry
The Zacks analyst is impressed with National Vision's third-quarter results benefiting from new store openings in America's Best and Eyeglass World brands. Yet, Stiff rivalry remains a concern.
Red Rock (RRR) Banks On Las Vegas Operations, High Costs Ail
Per the Zacks analyst, Red Rock is likely to benefit from Las Vegas operations, cost saving initiatives and development pipeline. However, supply chain disruption and inflationary pressure remain woes
New Upgrades
Solid Customer Demand Drives Archer Daniel's (ADM) Growth
Per the Zacks analyst, Archer Daniel's is gaining from robust demand and solid product portfolio which has been driving growth in all segments. It expects to continue the momentum in 2023.
Rise in Digital Subscribers to Lift NY Times' (NYT) Revenues
Per the Zacks analyst, The New York Times Company benefits from increase in digital subscribers. Management anticipates digital-only subscription revenues to rise 13-16% in first-quarter 2023.
Pro-Investor Steps Aid H&R Block (HRB), Low Liquidity Hurt
Per the Zacks analyst, H&R Block has been consistent with dividends & share repurchases. However, decreasing current ratio is worrisome.
New Downgrades
SM Energy (SM) to Incur Potential Losses Through Hedging
Despite a strong hedging position, SM Energy is likely to incur massive hedging losses due to high commodity prices. This can affect its future cash flow generation, concerning the Zacks analyst.
Focus on Multiple Basins to Hurt Ovintiv (OVV)
The Zacks analyst believes that there appears to be a case for Ovintiv to narrow its focus by divesting some non-core acreages to concentrate more on its core operations.
Silicon Motion (SIMO) Hit by Supply Woes, Production Delays
Per the Zacks analyst, Silicon Motion is likely to be plagued by pandemic-led production delays,, supply chain constraints, sluggishness in the global economy and tense geo-political conditions.
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Intel Corporation (INTC) : Free Stock Analysis Report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
CNH Industrial N.V. (CNHI) : Free Stock Analysis Report
Synchrony Financial (SYF) : Free Stock Analysis Report
