News

Monday, April 29, 2024

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 NVIDIA Corporation (NVDA), Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN). 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 >>>

NVIDIA shares have outperformed the Zacks Semiconductor - General industry over the year-to-date period (+77.2% vs. +54.0%) reflecting the company's leadership in the artificial intelligence (AI) space.

The data center end-market business is benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures. A surge in hyperscale demand and higher sell-ins to partners across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the autonomous vehicles and other automotive electronics space. However, its near-term prospects are likely to be hurt by softening IT spending amid macroeconomic headwinds.

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

Shares of Alphabet have modestly outperformed the Zacks Internet - Services industry over the year-to-date period (+23.1% vs. +20.0%). The company’s first quarter results were driven by solid momentum in the cloud business. Further, improving Search performance on the back of major Search updates, was a positive.

Also, strength in YouTube contributed well. Notably, robust cloud division remains the key catalyst. Expanding data centers will continue to bolster its presence in the cloud space. Strengthening generative AI capabilities should aid business growth in the long term. Alphabet’s deepening focus on wearables category remains a tailwind. Expanding presence in the autonomous driving space is a plus.

However, sluggish Network advertisement business is a negative. Increasing litigation issues and expenses remain concerns. Rising cloud competition from Microsoft and Amazon is a concern.

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

Amazon.com shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+18.2% vs. +10.6%) on the back of momentum in its Prime unit and the favorable outlook for its cloud business.

Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.

Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Also, deepening focus on generative AI is a major plus. However, adverse macroeconomic challenges remain headwinds. Rising transportation and fulfillment center costs are concerns.

(You can read the full research report on Amazon.com here >>>)

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Blackstone Inc. (BX) and Marriott International, Inc. (MAR).

Director of Research

Sheraz Mian

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

Featured Reports

NextEra (NEE) Gains from Steady Investment, Renewable Focus
Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Fund-Raising Ability Aids Blackstone (BX), High Costs Ails
Per the Zacks analyst, Blackstone's solid fund rising capability and asset inflows will likely aid profitability. Yet, mounting expenses and low capital distribution sustainability are major woes.

Solid Expansion Efforts Aid Marriott (MAR), High Debt Ail
Per the Zacks analyst, Marriott benefits from solid leisure demand, solid global booking trends and expansion efforts. However, challenging macro-economic condition and high debt remain a concern.

Phillips 66 (PSX) To Gain On Strong Focus on Midstream Unit
Per the Zacks analyst, Phillips 66's (PSX) focus on midstream, renewables and chemicals sectors should aid its cash flow. However, increasing regulatory costs might limit the company's profitability.

Strong Demand for Products Aids The Cooper Companies (COO)
Per the Zacks analyst, The Cooper Companies witnessed strong demand for its products across several segments during the first quarter. The trend is likely to continue boosting the company's prospect.

Fire & Safety Segment to Drive IDEX (IEX), High Costs Ail
Per the Zacks analyst, IDEX will benefit from strength in Fire & Safety/Diversified Products segment, led by strong momentum in the fire and rescue businesses. However, high costs remain concerning.

Axsome's (AXSM) Marketed Drugs Drive Growth Amid Competition
Per the Zacks analyst, Axsome's lead drug, Auvelity, approved for treating major depressive disorder is driving sales. The addition of Sunosi bodes well too. However, stiff competition remains a woe.

New Upgrades

Wabtec (WAB) Rides on Dividends, Buybacks & Freight Segment
The Zacks analyst likes the company's efforts to reward its shareholders through dividends and buybacks. Strong performance of the Freight segment bodes well.

Acquisitions & Solid Acute Care Aid Universal Health (UHS)
Per the Zacks analyst, numerous acquisitions help Universal Health expand geographically and boost current segments. New hospitals are expected to accelerate growth in its Acute Care Segment.

Strategic Investments, Acquisitions Aid California Water (CWT)
Per the Zacks analyst, California Water's infrastructure investments should help it provide reliable services. It gains from the expansion of operations through acquisitions and organic activities.

New Downgrades

ADTRAN (ADTN) Impaired by Margin Woes, Sino-US Trade Spat
Per the Zacks analyst, ADTRAN is likely to remain plagued by the latent Sino-US bilateral trade restrictions and high operating costs with continuous investments in research and development efforts.

V.F. Corp (VFC) Witnesses Sluggishness in Its Wholesale Unit
Per the Zacks analyst, V.F. Corp is witnessing a dismal performance in its wholesale unit, and sluggishness in the Americas and Vans brand. A tough operating backdrop also acts as a deterrent.

Weak Cutting & Marking Hurts IPG Photonics' (IPGP) Prospects
Per the Zacks analyst, IPG Photonics is suffering from weakness in cutting and marking applications, particularly in China, amid challenging macroeconomic conditions and stiff competition.

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