For Immediate Release
Chicago, IL – December 18, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla, Inc. TSLA, Broadcom Inc. AVGO, Bank of America Corp. BAC and Flanigan's Enterprises, Inc. BDL.
Here are highlights from Tuesday’s Analyst Blog:
Top Stock Reports for Tesla, Broadcom and Bank of America
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 Tesla, Inc., Broadcom Inc. and Bank of America Corp., as well as a micro-cap stock Flanigan's Enterprises, Inc. 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 >>>
Tesla shares have outperformed the Zacks Automotive - Domestic industry over the year-to-date period (+106.4% vs. +56.9%), with the stock getting a boost from Donald Trump's election victory. Despite potential rebate cuts under a Trump presidency, Tesla is well-positioned to thrive without subsidies, thanks to its cost efficiency and unmatched scale.
Tesla’s long-term growth prospects remain strong, driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements. Energy deployments are expected to double this year, thanks to the strong reception of its Megapack and Powerwall products.
Tesla’s robust balance sheet, with a high liquidity buffer, supports continued innovation and expansion. Progress in the autonomous vehicle domain, including plans to launch robotaxi services in 2025, position the company well for sustained growth. As such, we are bullish on the stock.
(You can read the full research report on Tesla here >>>)
Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+213.3% vs. +73.1%). The company reported strong fiscal fourth-quarter results, with revenues and earnings increasing year over year. The company benefited from strong demand for Broadcom’s custom AI accelerators (XPUs) and networking.
Broadcom experienced four times growth in AI connectivity revenues, driven by global shipments of its Tomahawk and Jericho solutions. The acquisition of VMware has benefited Infrastructure software solutions. AVGO’s strong partner base, including Arista Networks, Dell Technologies, Juniper and Supermicro, served as a key catalyst.
However, non-AI semiconductor revenues declined, reflecting a cyclical downturn that acted as a headwind. High cash interest expenses, a higher tax burden, and ongoing restructuring costs related to the VMware acquisition affected overall profitability.
(You can read the full research report on Broadcom here >>>)
Bank of America’s shares have gained +13.5% over the past six months against the Zacks Financial - Investment Bank industry’s gain of +23.5%. Though the company’s investment banking (IB) business shows signs of a solid resurgence, the challenging macroeconomic backdrop will likely weigh on it. Hence, fee income growth will likely be muted.
The Zacks analyst project non-interest income to rise 9.8% in 2024 and only 1.8% in 2025. Due to continued investments in the franchise, expenses will remain high. We expect total non-interest expenses to rise 1.1% in 2024. While high funding costs are a concern, the company’s net interest income (NII) will be positively impacted by interest rate cuts. We project NII to witness a CAGR of 3.1% by 2026.
The company plans to open financial centers in new and existing markets and improve digital capabilities. These will support the top line. We project total revenues to grow 3.2% in 2024.
(You can read the full research report on Bank of America here >>>)
Shares of Flanigan's have underperformed the Zacks Retail - Restaurants industry over the past year (-4.9% vs. +9.0%). This microcap company with market capitalization of $45.35 million is witnessing declining net income, increasing operational costs, and pressures on margins due to external economic factors pose challenges, particularly given the company’s regional market concentration and increased debt levels.
Nevertheless, Flanigan's reported resilient revenue growth, with an 8.6% year-over-year increase to $142.3 million for the 39 weeks ended June 29, 2024, driven by higher sales across its restaurant and package store segments.
Despite rising costs, the company maintained solid operating performance, with $5.8 million in income from operations, reflecting effective cost management. Strategic property investments (which rose to $82.2 million) and a strong liquidity position of $22.1 million support long-term growth.
(You can read the full research report on Flanigan's here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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