Zacks Analyst Blog Highlights: Broadcom, Bank of Nova Scotia and DENSO

0

For immediate release

Chicago, IL – December 23, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Broadcom Inc. AVGO, Bank of Nova Scotia BNS, and DENSO Corporation DNZOY.

Here are highlights from Wednesday’s analyst blog:

S&P 500 ready for a massive sell-off? 3 ultra-safe stocks to buy

The only thing on everyone’s mind right now is Omicron and the way it’s spread. For investors, it’s not just the fear of getting infected or worse, of being hospitalized. It’s also a concern as to what it might do for the market, if people were to rush in. And of course, the things that will be affected first will be travel, airlines, hotels, restaurants, etc. that we all bet on as reopening stories.

For the most part, people stick to their vacation plans and make the most of testing kits, masks, and other precautions to stay safe. But there is concern that just after the holiday season things could drop off dramatically. And by then, we could be in pretty bad shape considering that Omicron is much more contagious than Delta.

Of course, the Biden administration’s free test kits for home testing will help. The government has said it will buy 500 million test kits and deliver them free to those who want them from January.

The catastrophic situation we had when the virus first struck is extremely unlikely to be repeated this time around, as 200 million people are already vaccinated, we have better treatments, and people in general know what to do about it. stay safe. There is also a lot of infrastructure in place to allow people to operate remotely. But the risks cannot be ignored.

And they add to other concerns about inflation, supply chains, product shortages, and the workforce issues we were already in the midst of.

While the stock market has been one of the best places to invest your money this year, the stage looks set for a major pullback in the S&P 500. And that’s going to hurt a lot of people. So you may be wondering what to do to remedy the situation.

A proven strategy for times like this, sometimes overlooked because it’s so easy, is to pick low beta stocks. A low beta stock refers to a stock with a beta value of less than 1. Stocks that have historically performed in accordance with the S&P 500 (usually the S&P 500, but can also be relative to the Dow Jones Industrial Average or the Nasdaq 100 ) have a beta value of 1. Stocks that don’t move as much as the index have a beta value of less than 1, and stocks that move more than the index have a beta value of more than 1.

So basically beta is a measure of volatility relative to an index, usually the S&P 500. When there are significant uncertainties in the market, it makes sense to choose stocks with low beta because they won’t be as high. volatile.

And if it also pays a dividend and has a relatively solid growth profile, it makes more sense to invest there.

At Zacks, we also have a system for ranking stocks in our universe based on their short-term performance (over the next month). Thus, a stock with a strong upside potential would have a Zacks Rank # 1 (Strong Buy), if the odds are slightly lower, it would have a Zacks Rank # 2 (Buy), then # 3 for Hold, # 4 for Sell and # 5 for strong selling.

These three actions combine the above factors, so they can be considered ultra-safe-

Broadcom

Broadcom is a leading global designer, developer and supplier of a wide range of semiconductor devices, with a focus on complementary metal oxide semiconductor (CMOS) devices with digital signals and mixed complex and analog III-V products.

Based in San Jose, California, Broadcom’s semiconductor solutions are used in end products such as enterprise and data center networks, home connectivity, set-top boxes, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage systems, factory automation systems, power generation and alternative energy, and electronic displays.

In the last quarter, Broadcom’s results were more or less in line with estimates. The company sees continued strength in the 5G infrastructure and data center markets and the breadth and depth of its product offerings are helping sales. Over the past 30 days, Zacks’ consensus estimates for its 2022 (end of October) and 2023 revenue have increased. The estimate for 2022 increased by $ 2.02 (6.5%) while the estimate for 2023 increased by $ 2.82 (8.5%).

After modest growth of 11.6% during the year, Broadcom’s revenues are expected to increase 4.7% the following year. Its profits are expected to grow by 17.9% and 9.4% respectively.

The company pays a dividend which pays 2.23%. And best of all, it has a beta value of 0.93.

Bank of Nova Scotia

The Bank of Nova Scotia is a leading Canadian bank providing retail banking and wealth management services primarily to clients in Canada, United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America. The Bank of Nova Scotia is headquartered in Halifax, Canada.

In the last quarter, the company’s reported profits were 8.5% higher than Zacks’ consensus estimate. And management has expressed confidence in its diverse business model, which has demonstrated its resilience through the pandemic. They also believe that the bank is well positioned to reach its full earning capacity in the coming year. Bank of Nova Scotia estimates continue on an upward trajectory. And over the past 30 days, the estimate for 2022 (end of October) has increased by 43 cents (7.1%) while the estimate for 2023 has increased by 52 cents (8.1%).

Analysts currently expect its 2022 revenue and profit to grow 3.0% and 6.6% respectively, while 2023 revenue and profit to grow 5.8% and 3.7% respectively.

If that sounds like very weak growth, it’s worth remembering that the Bank of Nova Scotia also pays a dividend that pays 4.2%. And the best part, for the sake of this topic, is that the stock’s beta value is 0.94.

DENSO Corp.

DENSO develops, manufactures and sells auto parts in Japan, the rest of Asia, North America, Europe and beyond. It offers a very wide range of products, from windshield wipers to cooling and heating systems, including powertrains and other automotive electronic components. He is based in Kariya, Japan.

The company’s focus on cutting-edge technology has positioned it to succeed in a world moving towards an electric and self-sustaining future. As a result, he is able to sign lucrative deals with companies like Toyota and Honeywell.

In the last quarter, DENSO’s profits were 36.4% higher than Zacks’ consensus estimate. However, its estimates for 2022 (end of March) and 2023 have increased. Over the past 30 days, Zacks’ consensus estimate for 2022 has increased by 20 cents (10.5%) while the estimate for 2023 has increased by 30 cents (12.9%).

DENSO Corp’s revenue is currently expected to grow 8.1% in 2022 and 12.1% in 2023. Its profits are expected to increase 177.6% and 24.2%, respectively, in the two years.

DENSO’s dividend yields 1.22%. Its beta is 0.94.

Media contact

Zacks investment research

800-767-3771 ext 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios made up of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

Zacks’ top picks for leveraging artificial intelligence

This world-changing technology is expected to generate 100 billion dollars by 2025. From self-driving cars to analyzing consumer data, people are relying on machines more than ever. Now is the time to capitalize on the 4th industrial revolution. Zacks’ Urgent Special Report Reveals 6 AI Picks Investors Need To Know Today.

See 6 artificial intelligence stocks with extreme upside potential >>

Click to get this free report

Broadcom Inc. (AVGO): Free Stock Analysis Report

Bank of Nova Scotia The (BNS): Free Stock Analysis Report

Denso Corp. (DNZOY): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.