Top Analyst Reports for Broadcom, UnitedHealth & Toyota Motor

Friday, April 4, 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), UnitedHealth Group Inc. (UNH) and Toyota Motor Corp. (TM), as well as a micro-cap stock Perma-Pipe International Holdings, Inc. (PPIH). 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 >>>

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You can read today's AWS here >>> Pre-Markets Down Another -2% on Good Jobs Report

Today's Featured Research Reports

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+15.9% vs. -8.4%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in its first-quarter fiscal 2025 report. 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 Q1, 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 its fiscal Q2 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 UnitedHealth have outperformed the Zacks Medical - HMOs industry over the past year (+20.5% vs. +12.3%). The company’s top line remains poised for growth on the back of a strong market position, new deals, renewed agreements and expansion of service offerings. UnitedHealth’s solid health services segment provides diversification benefits. Its Government business remains well-poised for growth in the future.

Adjusted net earnings per share are anticipated to be in the $29.50-$30 range in 2025. A sturdy balance sheet enables investments and prudent deployment of capital via buybacks and dividend payments.

However, declining membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. The Zacks analyst expects medical costs to jump over 14% YoY in 2025. A debt-laden balance sheet induces an increase in interest expenses.

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

Toyota Motor’s shares have declined -30.1% over the past year against the Zacks Automotive - Foreign industry’s decline of -32.9%. The company’s significant investments in human capital and expansion initiatives are expected to weigh on operating profits this fiscal year. Elevated R&D expenditures on advanced technologies and alternative fuels support long-term innovation, but may constrain near-term margins. Rising debt levels also pose financial challenges. The stock warrants a cautious stance now.

Nevertheless, the surge in hybrid adoption is driving Toyota’s sales, supported by strategic initiatives to accelerate growth and enhance profitability. The company is working to restore production to normal levels.

While prioritizing hybrids, Toyota remains committed to the BEV market, with plans to introduce solid-state batteries that promise extended range and lower production costs. Investor-friendly moves further bolster optimism.

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

Shares of Perma-Pipe International have outperformed the Zacks Steel - Pipe and Tube industry over the past year (+43.3% vs. +1.3%). This microcap company with market capitalization of $92.40 million have backlog which grew 33% to over $100 million by November, reflecting strong demand in key markets like oil and gas and district energy.

Geographic diversification, including $61 million in recent contracts across MENA and the Americas, reduces regional risks while positioning the company for growth in energy and infrastructure. Its focus on high-growth markets aligns with robust infrastructure development, supported by proprietary technologies like the XTRU-THERM insulation system, bolstering market leadership.

The company’s tailored solutions cater to high-margin sectors, ensuring operational resilience. Long-term demand is underpinned by global steel pipe market growth, fueled by investments in infrastructure and urbanization. However, exposure to cyclical markets, intense competition, geopolitical risks and regulatory compliance costs present challenges.

(You can read the full research report on Perma-Pipe International here >>>)

Other noteworthy reports we are featuring today include Constellation Energy Corp. (CEG), Alnylam Pharmaceuticals, Inc. (ALNY) and LPL Financial Holdings Inc. (LPLA).

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)

Solid Optum Unit Drives UnitedHealth (UNH), High Costs Hurt

Surge in Hybrid Adoption Aids Toyota (TM) Amid High Expenses

Featured Reports

Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output

Amvuttra & Givlaari Boosts Alnylam (ALNY), Pipeline Holds Promise
Per the Zacks Analyst, Amvuttra and Givlaari sales are expected to continue to boost Alnylam's sales. Its existing collaboration agreements to develop pipeline candidates are also progressing well.

Buyouts to Support LPL Financial (LPLA) Amid Rising Expenses
Per the Zacks analyst, buyouts such as Commonwealth Financial, a solid balance sheet, and advisor productivity will likely aid LPL Financial. Yet, high costs and volatile commission revenues are woes.

Hormel Foods (HRL) Benefits from Solid Foodservice Segment
Per the Zacks analyst, Hormel Foods is benefiting from strength in the Foodservice business. During the first quarter of fiscal 2025, Foodservice sales increased 2% to $930.2 million.

Defense Orders Drive Huntington Ingalls (HII), Amid Labor Shortage
Per the Zacks analyst, Huntington Ingalls is likely to benefit from increasing defense orders from the Pentagon and US allies. Yet labor shortage result in delays and likely impact operating results.

Lamb Weston's (LW) Top Line Gains From Robust Volume Growth
Per the Zacks analyst, Lamb Weston's fiscal third-quarter sales growth was backed by higher volumes in all units. Volume is expected to remain strong, which is likely to fuel fiscal 2025 sales.

Strategic Acquisitions Buoy Northern Oil and Gas (NOG)
The Zacks analyst notes that Northern Oil and Gas' acquisitions in the Permian and Uinta Basins boost growth by expanding assets and production, but oil price volatility remains a key risk.

New Upgrades

Strength Across Outdoor & Fitness Segments Aid Garmin (GRMN)
Per the Zacks analyst, Garmin is riding on solid demand for adventure watches and advanced wearables which is driving the performance of its Outdoor and Fitness segments.

Veeva Systems (VEEV) Gains on Solid R&D, Strategic Alliances
Per the Zacks analyst, Veeva Systems is gaining from strong customer adoption and strategic alliances. Innovation, a solid product portfolio, and a debt-free balance sheet are also fueling growth.

Solid Demand, Pricing Actions Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Cost-reduction initiatives and efforts to preserve liquidity are also driving growth.

New Downgrades

Schneider (SNDR) is Hurt by Lower Brokerage Revenues & Volumes
The Zacks Analyst is worried about the fact that lower Network volumes and lower brokerage revenue per order hurt Schneider's top line.

Debt Load and Stiff Competition Weigh on America Movil (AMX)
Per the Zacks analyst, America Movil's faces stiff competition from other telecom giants along with a highly leveraged balance sheet remains a concern.

Mohawk (MHK) is Hurting from Macro Headwinds & High Costs
Per the Zacks analyst, Mohawk's prospects are hurting from the ongoing market uncertainties and an elevated cost environment. Also, housing market weakness adds to the headwinds.

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

Zacks Investment Research