Top Stock Reports for NVIDIA, Visa & Toyota Motor
Friday, February 24, 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 NVIDIA Corporation (NVDA), Visa Inc. (V), and Toyota Motor Corporation (TM). 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 declined -2.0% over the past year against the Zacks Semiconductor - General industry’s decline of -10.5%. The Zacks analyst believes that the company’s near-term prospect looks gloomy due to weakening demand for its chips used in gaming and data center end markets. While the macroeconomic headwinds are impacting gaming and data center chip demand, higher channel inventory levels are hurting chip prices. The ongoing Russia-Ukraine war is likely to continue negatively impact NVIDIA’s near-term revenues.
Nonetheless, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is likely to aid NVIDIA’s growth. Additionally, collaboration with the likes of Mercedes-Benz and Audi is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.
(You can read the full research report on NVIDIA here >>>)
Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+0.9% vs. -6.4%). The Zacks analyst believes that the company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa.
A strong cash position enables it to boost shareholder value. However, high operating expenses stress the margins. Ramped-up client incentives will dent the top line. The company's volumes will likely suffer due to the Russia-Ukraine conflict.
(You can read the full research report on Visa here >>>)
Shares of Toyota Motor have declined -25.0% over the past year against the Zacks Automotive - Foreign industry’s decline of -34.8%. The Zacks analyst believes that the shortage of microchips compounded by the Russia-Ukraine war is weighing on Toyota. The Japanese auto giant is also bearing the brunt of soaring raw material prices. Supply-chain disruptions, logistical challenges, and manufacturing inefficiencies are playing spoilsports.
Additionally, high inflation, rising interest rates, and an uncertain macro environment also raise concern for Toyota as the auto industry is highly cyclic. Rising R&D expenses and capex are expected to hurt near-term margins and cash flows. The company’s high debt levels also raise concerns.
(You can read the full research report on Toyota Motor here >>>)
Other noteworthy reports we are featuring today include Costco Wholesale Corporation (COST), Pioneer Natural Resources Company (PXD) and Danaher Corporation (DHR).
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
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Visa (V) Rides On Growing Cross-Border Volume, Expenses High
Toyota (TM) Banks on Strong Sales as Cost Woes Ail Margins
Featured Reports
BioMarin's (BMRN) Progress with Gene Therapies Encouraging
While BioMarin's existing drugs continue to drive its topline, the Zacks analyst is encouraged by BioMarin's launch of two new gene therapy treatments in its portfolio.
Robust Projects Aid Canadian Solar (CSIQ), High-Cost Woes
Per the Zacks analyst, strong pipeline of projects and expanding global footprint boost Canadian Solar's long-term growth prospects. Yet, higher logistics and input costs remains a challenge.
Pioneer (PXD) Banks On Its High-Quality Permian Basin Assets
The Zacks analyst believes that Pioneer's high-quality acreages of almost one million in the Permian Basin will drive long-term oil production growth. However, rising production costs are concerning.
Declining Expenses, Acquisitions Aid Tenet Healthcare (THC)
Per the Zacks analyst, lower costs as a result of the drop in salaries, wages and benefits might aid margins. Buyouts expanded its capabilities and geographic reach.
New Alliances Aid Allscripts (MDRX) Amid Stiff Competition
The Zacks analyst is upbeat about Allscripts' entry into a few notable alliances over the past few months despite its operation in a highly competitive space.
Life Sciences Unit Aids Danaher (DHR) Amid Supply Chain Woes
Strength in the Life Sciences segment due to growth in instruments and consumables businesses bodes well for Danaher. However, the Zacks analyst is concerned about persistent supply chain issues.
Industrial Automation Business Strength Aids Teradyne (TER)
Per the Zacks analyst, strength in OEM channel at Universal Robots, and growing momentum in MiR services are benefiting Teradyne's Industrial Automation business.
New Upgrades
Increasing Demand for Financing Aids Hercules Capital (HTGC)
Per the Zacks analyst, driven by the rise in demand for customized financing and a robust deal pipeline, total new commitments are expected to keep rising. This will aid Hercules Capital's top line.
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Per the Zacks analyst, Costco's growth strategies, sturdy comparable sales performance and strong membership trends reinforce its position. Comparable sales rose 6.6% during the first quarter.
Recovering Demand for Top Office Space Aids SL Green (SLG)
Per the Zacks analyst, the recovering demand for top-quality office space in key markets and a diverse tenant base poise SL Green well for growth. However, concerns about interest rate hike remain.
New Downgrades
Trinity (TRN) Grapples With Labor & Supply Chain Challenges
The Zacks analyst is worried about the labor and supply chain challenges faced by Trinity's Rail Products Group that impact deliveries and margins of the segment.
High Operating Costs, Competition Mar ADTRAN (ADTN) Margins
Per the Zacks analyst, stiff competition and investments to upgrade infrastructure are likely to weigh on ADTRAN's performance, while increasing cost of goods sold remains a perennial concern.
Tyson Foods (TSN) Grapples with Softness in Beef Segment
Per the Zacks analyst, Tyson Foods is seeing softness in the Beef segment, wherein sales declined in first quarter. USDA projects fiscal 2023 domestic production to fall roughly 5% in the Beef segment
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Visa Inc. (V) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
