For Immediate Release Chicago, IL – July 03, 2017 –Zacks Equity Research Broadcom Limited (NASDAQ: AVGO – Free Report ) as the Bull of the Day, Advance Auto Parts (NYSE: AAP – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on various companies. Here is a synopsis of all two stocks: Bull of the Day : Headquartered in San Jose, CA and Singapore,Broadcom Limited (NASDAQ: AVGO – Free Report ) is a designer, developer and global supplier of a broad range of semiconductor devices, The company was formed following the merger of Avago and Broadcom Corporation in February 2016. Avago products primarily serve four markets: Wired Infrastructure (50% of Q2 revenue), Wireless Communications (28%), Enterprise Storage (17%), and Industrial & Other (5%). The company has a global presence and a very diversified revenue model. Excellent Results and Raised Guidance Broadcom reported strong second-quarter fiscal 2017 results with earnings rising almost 46% year-over-year. Adjusted earnings (including stock-based compensation) were $3.31 per share, ahead of the Zacks Consensus Estimate of $3.02. Revenues were 4.2 billion, up 18% year-over-year, better than management’s guidance as well as the Zacks Consensus Estimate. “We delivered strong financial results for our second fiscal quarter with revenue, gross margin and EPS all above the top end of guidance,” said the CEO. “Anticipating that end markets will remain healthy, we expect third fiscal quarter revenue growth of approximately six percent sequentially, driven by solid growth from our wired segment and a seasonal second half ramp in our wireless segment.” The management raised their guidance for the fiscal third quarter; they now revenues of $4.45 billion, better than street consensus. Rising Estimates After better-than-expected results and upgraded guidance, the Zacks Consensus Estimates for FY 2017 and 2018 have increased to $13.78 per share and $15.20 per share, from $12.89 and $14.21 respectively, 30 days ago. The company has beaten the estimates in all of the last four quarter, with average quarterly surprise at 6.73%. Solid Industry Outlook Semiconductor industry is currently ranked 76 out of 265 Zacks industries (top 29%). With rising demand from many high growth areas, the industry is likely to outperform the broader markets in the coming months. Bernstein chip analyst recommends Broadcom as a safe haven amidst rising expectations for the chip industry that leave little room for error. “We prefer AVGO (strong FCF cash flow generation creating potential for earnings upside through M&A and/or margin expansion from strong cash return / dividend growth, with long term margin expansion and attractive valuation.” Increased Content in iPhone 8 The company makes radio frequency chips that are used in smartphones by Apple, Samsung and other mobile device manufacturers. Avago is a key Apple supplier and expected to gain content iPhone 8. Their content in Samsung’s latest smartphone Samsung Galaxy S8 had also gone up. Returning Cash to Shareholders The chipmaker has been paying dividends since 2010. In December 2016, they had doubled their dividend to $1.02 per share. They have a nice dividend yield of 1.74% currently. With strong and rising cash flows, the company should be able to increase its dividend going forward too. The Bottom Line With a strong industry outlook, rising earnings estimates and a nice dividend yield, the company looks set to reward investors in the coming months. Trading at a forward PE of 16.98, the stock looks attractive from valuation perspective too, compared to the industry multiple of 20.72 and S&P 500 multiple of about 19. 5 Trades Could Profit ""Big-League"" from Trump Policies If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >> Bear of the Day : Advance Auto Parts (NYSE:AAP – Free Report ) a leading automotive parts supplier in North America, serving both the professional installer and do-it-yourself customers. The company operates approximately 5,100 stores, 126 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the US and Canada. They employ approximately 74,000 people. Shares Plunge After Weak Results The company reported Q1 ended April 22 on May 24. Adjusted earnings to $1.60 per share were down 36% year-over-year and also significantly below the Zacks Consensus Estimate of $2.12. Revenues declined 3% year over year to $2.89 billion and also missed the Zacks Consensus Estimate of $2.93 billion. “Our first quarter comparable store sales declined 2.7%. As expected, comparable store sales were unfavorably impacted by the shift in New Year’s Day to the first quarter of 2017 as well as the significant shift of winter related demand into December,” said the CEO. Shares plunged after the report and have continued to slide since then. The stock is now down about 32% year-to-date. Falling Estimates Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $6.78 per share and $8.15 per share from $7.51 and $8.72 respectively, before the results. The company has missed in three out of past four quarters and just met in one. The average negative quarterly surprise for the past four quarters is 10.75%. The Bottom Line It was recently reported that the company is cutting management-level job positions companywide. Auto parts suppliers are facing increasing headwinds due to rising competition from Amazon. The industry “Automotive - Retail and Wholesale - Parts” is currently ranked 247 out of 265 Zacks industries (bottom 7%), suggesting potential underperformance in the short-to-medium term. With the fundamental shift in the auto industry towards smart cars with more digital features, traditional auto suppliers will face rising challenges ahead. It would be better for investors to stay away from this stock and the industry as of now. There is no Zacks #1 or #2 stock in this industry. 5 Trades Could Profit ""Big-League"" from Trump Policies If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >> Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter: About the Bull and Bear of the Day Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months. About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Strong Stocks that Should Be in the News Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>. Get the full Report on AVGO - FREE Get the full Report on AAP - FREE Follow us on Twitter: https://twitter.com/zacksresearch!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Re... Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer . 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadcom Limited (AVGO): Free Stock Analysis Report Advance Auto Parts Inc (AAP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research