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Top Stock Reports for NVIDIA, Novartis & NextEra Energy

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·6 min read
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Tuesday, February 22, 2022

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 Corp. (NVDA), Novartis AG (NVS), and NextEra Energy, Inc. (NEE). 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 >>>

Shares of NVIDIA have outperformed the Zacks Semiconductor – General industry over the past year (+67.2% vs. +21.4%). The Zacks analyst believes that NVIDIA is benefiting from coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business.

Expansion of NVIDIA GeForce NOW is expected to drive user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. However, management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.

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

Shares of Novartis have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-0.2% vs. +16.9%), however the company still has a strong and diverse portfolio. The Zacks analyst believes that solid momentum in key brands like psoriasis drug Cosentyx, cardiovascular drug Entresto, gene therapy Zolgensma, the oncology portfolio and the launch of Kesimpta should continue to boost performance after a slowdown earlier in the year.

The launch of additional drugs like Piqray, Leqvio and Mayzent and the label expansion of key drugs should boost performance. The pipeline progress is impressive and the company has some promising candidates.

However, the Sandoz division continues to be a drag on the overall business due to pricing pressures. Hence, management has commenced a strategic review of Sandoz and might separate the business. Generic competition for key drugs and pipeline setbacks also pose concerns.

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

Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the past six month period (-12.1% vs. -4.0%), but the Zacks analyst believes that the company through solid execution of organic projects and strategic acquisitions — is on course to achieve long-term growth objectives.

NextEra currently has a lot of renewable projects in its backlog and the number is rising every quarter, which is aiding NextEra to reduce emissions. The merger of Gulf Power and FPL further strengthens NextEra’s position in Florida. Improving Florida economy and NEE’s reliable energy services is expanding its customer volume in every quarter.

NextEra has ample liquidity to meet the current debt obligations. However, nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings.

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

Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), The Goldman Sachs Group, Inc. (GS) and Amgen Inc. (AMGN).

Mark Vickery
Senior Editor


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

Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)

Key brands Fuel Growth For Novartis (NVS) As Sandoz Weakens

Steady Investment & Renewable Focus Aid NextEra Energy (NEE)

Featured Reports

Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that it brings but is worried over the company's high debt load.

Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail
Per Zacks analyst, business diversification and sound capital position are likely to aid Goldman Sachs' growth. However, rising costs and legal hassles remain headwinds.

Amgen (AMGN) Counts on Key Drugs Amid Biosimilar Woes
The Zacks analyst believes that while Amgen's key drugs like Prolia, Repatha, Xgeva and biosimilars are driving sales, increasing competition for its legacy products is hurting the same.

PACCAR (PCAR) Gains on E-Vehicles & ADAS Amid Chip Crisis
PACCAR is poised for long-term growth from efforts toward electrification and advanced driver-assistance system. But, the Zacks analyst is wary of the chip crunch and rising investment and SG&A costs.

UBER Banks on Delivery Business as Mobility Remains Weak
The Zacks analyst is encouraged by the continued growth in UBER's delivery business. However, the mobility segment remains suppressed as newer variants of coronavirus emerge.

Inorganic Growth Moves Aid PNC Financial (PNC) Amid Costs Woes
Per Zacks analyst, inorganic and strategic growth initiatives with support from strong balance sheet are likely to support PNC Financial. However, higher costs are a threat to its profitability.

Mednax (MD) Strategic Acquisitions Aid, Rising Costs Ail
Per the Zacks analyst, Mednax's strategic buyouts are fueling its inorganic growth profile. Yet, rising costs continue to restrict margins.

New Upgrades

Beverage Can Demand & Investments Aid Crown Holdings (CCK)
The Zacks analyst believes that Crown Holdings will benefit from investment in capacity expansion to meet solid global beverage-can demand as well as strategic acquisitions.

Operational Excellence Initiatives Aid Weyerhaeuser (WY)
Per the Zacks analyst, Weyerhaeuser's focus on operational excellence plans, like merchandising for value, harvest & transportation efficiencies and more, are encouraging.

Robust Demand & Online Strength Drive Crocs' (CROX) Top Line
Per the Zacks analyst, Crocs has been witnessing solid online show as well as continued demand in Clogs, Sandals and Jibbitz. This led to significant revenue growth of 42.6% in Q4.

New Downgrades

Supply Chain Woes & Stiff Competition to Hurt Plexus (PLXS)
Per the Zacks analyst, pandemic induced supply chain troubles continue to be a major headwind for Plexus. Intensifying competition in the contract manufacturing space is an added concern.

Game Launch Delay, Stiff Competition Hurts Activision (ATVI)
Per the Zacks analyst, Activision is suffering from intensifying competition from the likes of EA, Take Two Interactive and Nintendo. Delayed launch of Overwatch 2 and Diablo IV is a concern.

Rising Costs & Soft Drug Delivery Sales Hurt Insulet (PODD)
The Zacks analyst is worried about Insulet's declining sales in the Drug Delivery segment. Escalating operating expenses too are weighing on the company's bottom line.

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
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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