Wednesday, December 6, 2023
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 Alphabet Inc. (GOOGL), NVIDIA Corporation (NVDA) and Roche Holding AG (RHHBY). 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 >>>
Alphabet shares have outperformed the Zacks Internet - Services industry over the year-to-date period (+48.5% vs. +47.6%). The company’s strong cloud division is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results. Also, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. Further, its deepening focus on wearables category remains a tailwind.
Alphabet’s expanding presence in the autonomous driving space is contributing well. Its growing efforts to gain foothold in the healthcare industry are other positives. However, sluggishness in the company’s Network advertisement businessremains a headwind. Additionally, its growing litigation issues and increasing expenses are concerns.
(You can read the full research report on Alphabet here >>>)
Shares of NVIDIA have outperformed the Zacks Semiconductor - General industry over the past six months (+24.3% vs. +20.3%). The company’s Compute & Networking revenues are gaining from strong growth of artificial intelligence (AI), high-performance computing and accelerated computing.
The datacenter end-market business is likely to benefit 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 a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.
Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space. However, its near-term prospects are likely to be hurt by weakening demand for chips used in the professional visualization end-market.
(You can read the full research report on NVIDIA here >>>)
Shares of Roche have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-9.1% vs. +7.0%). The company’s performance has been impacted by lower COVID-19-product-related sales, which has significantly impacted its top line, even though the diagnostics base business and newer drugs maintain growth.
Sales are likely to be affected further by the expected nosedive in sales of COVID-19 products worth nearly CHF 4.5 billion. Competition from biosimilars for established cancer medicines like Avastin, MabThera/Rituxan and Herceptin also hurt sales.
Nevertheless, new drugs, namely Ocrevus, Hemlibra, Evrysdi, Phesgo, Polivy and Tecentriq, have put up a stellar performance. The uptake of the new eye drug, Vabysmo, has been outstanding. The company’s efforts to develop new drugs to combat the decline in legacy drugs are encouraging.
(You can read the full research report on Roche here >>>)
Other noteworthy reports we are featuring today include Intuit Inc. (INTU), Anheuser-Busch InBev SA/NV (BUD) and AT&T Inc. (T).
Director of Research
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
Solid Momentum in Cloud Business Benefits Alphabet (GOOGL)
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
New Drugs Boost Roche (RHHBY), COVID-19 Treatments Decline
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Per the Zacks analyst, Intuit is benefiting from frequent product refreshes, which help it to gain customers. Moreover, increase in subscriptions is driving stable revenue growth for the company.
Global Brands Strength Drive AB InBev's (BUD) Organic Sales
Per the Zacks analyst, strength in global brands led to AB InBev's organic sales growth in third-quarter 2023, backed by improving key market trends and premiumization in majority of its markets.
AT&T (T) Rides on Wireless Traction, Fiber Densification
Per the Zacks analyst, AT&T is poised to benefit from solid wireless traction and fiber densification backed by a customer-centric business model, lower churn rate and higher-tier unlimited plans.
Deere (DE) Gains from Pricing Actions Amid Elevated Costs
Per the Zacks analyst, efforts to improve pricing are boosting Deere's growth. However, inflated material and labor costs are impacting the company's margins.
IDEXX (IDXX) Aided by Targeted Plan Execution Amid Macro Woe
The Zacks Analyst is impressed with IDEXX gaining from strong execution of plans, including premium instrument placement and recurring veterinary software sales growth. Yet, macro woes are concerning.
Strong Product Portfolio Buoys Optimism for Baxter (BAX)
Per the Zacks analysts, Baxter International is well poised for growth backed by a strong product portfolio. Introduction of new therapies and products likely to drive the topline growth.
WEX to Gain From Payzer Acquisition, Liquidity Declines
Per the Zacks analyst, the Payzer acquisition is likely to strengthen WEX's growth strategy by offering scalable SaaS to small business customers. Declining liquidity is a concern.
Solid Bookings & Fleet Expansion to Aid Royal Caribbean (RCL)
Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, strong pricing (on closer-in-demand) and digital innovations. Also, focus on fleet expansion bode well.
Everest Group (EG) Poised to Grow on Solid Insurance segment
Per the Zacks analyst, Everest Group is set to grow on solid Insurance segment on the back of product diversification, insurance expansion, new business opportunities, which drives premium growth.
Liberty Energy (LBRT) to Benefit from Multi-Basin Presence
The Zacks analyst believes that Liberty Energy's widespread presence in the top North American shale plays provides it with a competitive advantage over its peers.
Weather Variation & Third Party Failure Ail Clearway (CWEN)
Per the Zacks analyst Clearway Energy's (CWEN) power production from renewable asset gets impacted due to adverse weather conditions. Third-party transmission line failure can hurt operation.
Soft Americas Retail Unit Hurts Guess? (GES) Performance
Per the Zacks analyst, weakness in Americas Retail segment is hurting Guess?'s performance. In third-quarter fiscal 2024 segment revenues fell 7% on soft customer traffic.
Lower Transactions Amid High Rates to Hurt Jones Lang (JLL)
Per the Zacks analyst, lower commercial real estate transactions amid macroeconomic uncertainty and high interest rates offer a bleak prospect for Jones Lang LaSalle's transaction-based businesses.
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