Main research reports for Intel, Lockheed Martin and IBM
Friday, March 4, 2022
Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including Intel Corp. (INTC), Lockheed Martin Corp. (LMT) and International Business Machines Corp. (IBM). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.
You can see all today’s research reports here >>>
Intel shares are down -21.1% over the past year against Zacks Semiconductor – General Industry’s gain of +31.9%. However, Intel reported non-GAAP earnings of $1.09 per share in the fourth quarter of 2021, which beat Zacks’ consensus estimate of 21.1%.
The Zacks analyst believes the company is banking on strong prospects for the Internet of Things and Mobileye businesses. The recovery in the enterprise sector of the data center segment is positive. Intel is expected to benefit from increased demand for its 11th generation central processors based on the 10 nanometer (nm) SuperFin process.
Intel announced partnerships with ZEEKR and Sixt SE, and plans to unveil Mobileye’s robotaxi equipped with the Mobileye Drive system. However, the Client Computing group is expected to suffer due to a shortage of components. Production delays related to the 7nm ramp-up remain a concern.
(You can read the full Intel research report here >>>)
Shares of Lockheed Martin outperformed the Zacks Aerospace – Defense industry over the past year (+31.5% versus -28.2%). It is America’s largest defense contractor receiving a steady influx of orders through its leveraged presence in Army, Air Force, Navy and Space Technology programs. ‘information. The Zacks analyst believes that expansionary US budgets will also boost its activity. The F-35 program continues to be a key growth program for its Aerospace business unit. Over the past year, the stock has outperformed its industry.
However, America and Turkey’s tiff about the latter’s acceptance of Russian products could hurt its supply of components from Turkey. The company is facing performance issues with some of its products, which, in turn, may hurt its bottom line. In addition, uncertainty around a possible Chinese sanction against Lockheed could impact the latter.
(You can read the full Lockheed Martin research report here >>>)
Shares of IBM outperformed the industry Zacks Computer – Integrated Systems over the past year (+2.5% vs. +0.1%). IBM reported relatively healthy results in the fourth quarter of 2021 with solid hybrid cloud adoption supported by a resilient business model and a strong cash position thanks to diligent execution of operational plans. Despite year-over-year growth, earnings and adjusted revenue fell short of Zacks’ consensus estimate.
The Zacks analyst believes that the synergies of the Red Hat acquisition strengthen the company’s competitive position in the hybrid cloud market. IBM is set to benefit from the spin-off of the legacy infrastructure services business as it focuses on its hybrid cloud strategy. However, fierce competition in the cloud computing market from Amazon Web Services and Microsoft Azure remains an overhang. Higher debt levels amid major restructuring activities are a concern.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we feature today include Berkshire Hathaway (BRK.B), Stryker Corp. (SYK) and Infosys Ltd. (INFY).
Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Revenue overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>
To read today
Intel (INTC) benefits from strong demand in the data center group
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
IBM Bets on Hybrid Cloud and Blockchain Technology
Salix Business Boost Bausch (BHC) amid pandemic woes
Salix’s business continues to drive growth and strengthen top line as pandemic affects business, Zacks analyst says. Bausch plans to separate two of its activities should yield results.
Southwestern (SWN) will benefit from the acquisition of GEP Haynesville
According to the Zacks analyst, Southwestern’s acquisition of GEP Haynesville will help build additional scale in Haynesville, with production of 700 MMcf per day.
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Garlic
According to the Zacks analyst, Berkshire is expected to grow through a strong insurance business that generates profits and generates maximum return on equity. However, cat loss exposure induces earnings volatility.
MedSurg Central Unit Aids Stryker (SYK), Price Pressure Ails
According to the Zacks analyst, Stryker continues to benefit from the strong prospects of its mainline MedSurg. However, price pressure remains a problem.
Digital Transformation, AI Proliferation Aid Infosys (INFY)
According to the Zacks analyst, Infosys is benefiting from large contracts and greater investment from its customers in digital transformation, artificial intelligence and automation.
Strong demand helps Northrop (NOC) supply chain turmoil
Strong global demand for its products like Triton and E-2D Advanced Hawkeyes is steadily driving Northrop, according to the Zacks analyst. Still, COVID-19-induced supply chain disruption could hurt the stock.
UFP Industries (UFPI) bets on high-cost acquisitions
According to the Zacks analyst, UFP Industries is benefiting from an accretive acquisition and a robust US residential market. Yet supply chain constraints and inflation remain powerful headwinds.
Organic growth, strategic buyouts to help Jones Lang (JLL)
According to the Zacks analyst, solid growth in the real estate services segment will continue to fuel organic growth at Jones Lang LaSalle. Strategic buyouts and technology investments give it a competitive edge.
Rising iron prices and solid demand to boost Vale (VALE)
The Zacks analyst said strong iron ore prices and demand, lower debt levels and a focus on improving productivity and cutting costs will drive Vale’s growth.
Albertsons (ACI) strong digital efforts to drive sales
According to the Zacks analyst, Albertsons Companies has directed its resources towards expanding digital and omnichannel capabilities. The company’s third-quarter digital sales were up 9% year-on-year.
Green Dot (GDOT) struggles with rising spending and seasonality
The Zacks analyst believes higher spending from investments in sales, marketing and product development is likely to weigh on Green Dot’s results. Seasonal factors cause fluctuations in rev
3D Systems (DDD) gross margin penalized by unfavorable sales mix
According to the Zacks analyst, the unfavorable sales mix and increased investment in services and on-demand manufacturing are expected to continue to hurt 3D Systems’ gross margin in the near term.
Supply chain issue hurts outlook for MKS Instruments (MKSI)
According to the Zacks analyst, MKS Instruments is suffering from supply chain constraints that will hurt its revenue growth in the near term. Fierce competition and customer concentration are headwinds.
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Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Intel Corporation (INTC): Free Inventory Analysis Report
International Business Machines Corporation (IBM): Free Inventory Analysis Report
Infosys Limited (INFY): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
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