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Wednesday, August 13, 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), Philip Morris International Inc. (PM) and Novo Nordisk A/S (NVO). 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, attempting 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 Up on Rate-Cut Excitement
Today's Featured Research Reports
Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+35.7% vs. +23.7%). The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy.
Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that supports large-scale AI deployments with improved performance and efficiency. Broadcom expects third-quarter fiscal 2025 AI revenues to jump 60% year over year to $5.1 billion. The acquisition of VMware has benefited Infrastructure software solutions.
As of the fiscal second quarter, roughly 87% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. However, gross margin in the fiscal third quarter is expected to contract sequentially due to unfavorable revenues and product mix. High debt level is a headwind.
(You can read the full research report on Broadcom here >>>)
Shares of Philip Morris have gained +42.3% over the year-to-date period against the Zacks Tobacco industry’s gain of +45.8%. The company has been benefiting from strong pricing power and an expanding smoke-free portfolio. In the second quarter of 2025, Philip Morris' net revenues increased 7.1% year over year, driven by higher combustible tobacco pricing and increased smoke-free product volumes.
Philip Morris has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. Philip Morris has implemented significant cost-saving measures and strategic initiatives to achieve its long-term financial goals.
For 2025, adjusted earnings per share (EPS) are likely to be $7.43-$7.56, indicating a 13-15% year-over-year increase. However, Philip Morris faces premium valuation, currency volatility pressures and stringent global tobacco regulations impacting traditional product demand.
(You can read the full research report on Philip Morris here >>>)
Novo Nordisk’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-62.5% vs. -22%). The company’s recent guidance cut for sales and operating profit growth, primarily due to lower Wegovy sales in the presence of knockoff GLP-1 versions, is a massive setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a worry.
Nevertheless, Novo Nordisk’s Q2 earnings beat estimates, while sales missed. Ozempic and Rybelsus for diabetes and Wegovy for obesity are the main top-line contributors. It has been tackling the supply constraints of Wegovy by making serious investments to ramp up production.
An oral formulation of Wegovy is currently under review by the FDA for obesity, and a higher dose of the injection is under review in the EU. Novo Nordisk is also pursuing other indications, like liver fibrosis and MASH for semaglutide.
(You can read the full research report on Nordisk here >>>)
Other noteworthy reports we are featuring today include Sony Group Corp. (SONY), HCA Healthcare, Inc. (HCA) and Cummins Inc. (CMI).
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)
Philip Morris (PM) Benefits from Strong Smoke-free Revenues
NVO Growth Fueled by GLP-1 Drugs, Recent Market Turmoil a Woe
Featured Reports
Strength in Music & G&NS Segments Aids SONY Amid Forex Woes
Per the Zacks analyst, solid demand in the Game & Network Services and Music units is driving Sony's performance. FX volatility and the potential imposition of additional U.S. tariffs pose headwinds.
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remains a driving factor.
Cummins (CMI) Benefits from Strength in Power Systems Unit
Cummins' Power Systems segment growth, driven by rising demand from data centers and mission-critical applications, is offsetting North America truck market softness, per the Zacks analyst.
Dividends & Buybacks Aid Expeditors (EXPD), Tariff woes Ail
The Zacks analyst likes the company's efforts to reward its shareholders. The ongoing trade crisis with China represents a major headwind, as EXPD has substantial Chinese exposure.
Cologuard Momentum Aids Exact Sciences (EXAS) Amid Cost Woes
The Zacks analyst is impressed with Exact Sciences' solid Cologuard growth, driven by accelerated rescreens, care gap programs, and stronger commercial execution. Yet, rising costs are a concern.
Stable Investment and Customer Addition Aid UGI (UGI)
Per the Zacks analyst UGI's systematic investment to strengthen its existing infrastructure will allow it to serve demand from expanding customer base and boost its earnings.
Strong Compression Fleet Utilization to Aid Archrock (AROC)
Archrock's high fleet utilization indicates strong demand for its natural gas compression services, driving revenue growth. However, heavy reliance on the Permian Basin concerns the Zacks analyst.
New Upgrades
Astera Labs (ALAB) Rides on Strong Aries and Scorpio Demand
Per the Zacks analyst, Astera Labs is benefiting from strong demand for Aries and Scorpio product families.
F5 (FFIV) Rides on Firm Growth in its Software Business
Per the Zacks analyst, F5 is benefiting from strong growth in software, driven by security offerings, such as web application firewall, bot defense and mitigation products.
Ralph Lauren's (RL) Digital Business Investments Bolster Sales
Per the Zacks analyst, Ralph Lauren's digital strength is a key driver of its growth strategy, enabling the brand to deepen engagement and expand its reach globally. Global DTC comps rose 13% in Q1.
New Downgrades
Tariff Challenges Hurt Advanced Energy (AEIS) Prospects
Per the Zacks Analyst, Advanced Energy suffers from slowing demand in China and tariff challenges
Solid AUM to Support Invesco (IVZ), Volatile Net Inflows
Per the Zacks analyst, expansion plans, global presence, diverse offerings and robust AUM will likely aid Invesco's financials. However, fluctuating net flows amid and huge intangible assets are woes.
Clinical Role Demand Aids American Public (APEI), Costs Hurt
Per the Zacks analyst, American Public's growth is gaining from growing demand for healthcare professionals and diversified program offerings. However, high costs and macro risks are concerning.
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This article originally published on Zacks Investment Research (zacks.com).
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