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The Zacks Analyst Blog Highlights: Google, NVIDIA, Costco, Gilead Sciences and Morgan Stanley

Zacks Equity Research

For Immediate Release

Chicago, IL – August 6, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc. GOOGL, NVIDIA Corporation NVDA, Costco Wholesale Corporation COST, Gilead Sciences, Inc. GILD and Morgan Stanley MS.

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Alphabet, NVIDIA and Costco

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, NVIDIA and Costco Wholesale. 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 modestly lagged the Zacks Internet Services industry over the past year (+25.8% vs. +27.2%), reflecting the company's cyclical exposure to digital ad spending. That said, the Zacks analyst believes that expanding data centers will continue to bolster the company’s presence in the cloud space.

Alphabet reported strong second-quarter earnings. The cloud and YouTube businesses remained strong, while digital advertising growth slowed down in the quarter due to the pandemic. The company’s strengthening cloud unit aided substantial revenue growth. Further, major updates in the search segment are enhancing the search results, which is a major positive.

Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term. However, the company’s growing litigation issues and increasing expenses might hurt profitability.

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

Shares of NVIDIA have gained +76.4% over the past six months against the Zacks General Semiconductor industry’s rise of +7.2%. The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work from home and learn-at-home wave.

The company is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. The company expanded NVIDIA GeForce NOW in the last quarter, which is expected to drive user base. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon.

Additionally, its latest collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern.

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

Costco shares have gained +10.3% over the past three months against the Zacks Discount Retail industry’s rise of +11.2%. The Zacks analyst believes that Costco’s strategy to sell products at heavily discounted prices has helped it remain on a growth track as cash-strapped customers continue to reckon Costco as a viable option for low-cost necessities.

Notably, top line grew year over year and the company logged a decent comparable sales growth during third-quarter fiscal 2020. The company’s e-commerce sales surged during the quarter. Yet we note that Costco’s bottom line came under pressure. Management highlighted that incremental wage and sanitation costs owing to the coronavirus outbreak hurt the company’s quarterly earnings.

The company anticipates incremental expenses related to this catastrophe to exceed $100 million in the fourth quarter. Also, any higher investments or aggressive pricing strategy may hurt margins. Again, rising SG&A expenses and stiff competition pose concerns.

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

Other noteworthy reports we are featuring today include Gilead Sciences and Morgan Stanley.

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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/performancefor information about the performance numbers displayed in this press release.


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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
 
Morgan Stanley (MS) : Free Stock Analysis Report
 
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
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