Tuesday, December 29, 2020
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 Johnson & Johnson (JNJ), NVIDIA Corporation (NVDA) and Cisco Systems, Inc. (CSCO). 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 >>>
Johnson & Johnson shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the year-to-date period (+5.0% vs. +1.7%). The Zacks analyst believes that J&J’s diversification makes it relatively resilient amid macroeconomic turmoil. The Pharma unit is performing at above-market levels, supported by successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions.
However, headwinds like generic competition and pricing pressure continue. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. These lawsuits have resulted in uncertainties.
(You can read the full research report on Johnson & Johnson here >>>)
Shares of NVIDIA have increased +122.1% over the past year against the Zacks Semiconductor – General industry’s gain of +32.1%. The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It 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. Expansion of NVIDIA GeForce NOW is expected to drive the user base.
Further, solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Daimler-owned Mercedes-Benz 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 Cisco have fallen -6.3% in the year-to-date period against the Zacks Computer – Networking industry’s decline of -5.7%. The Zacks analyst believes that weakness in the commercial, service provider and enterprise end markets and coronavirus crisis-led supply chain constraints, is likely to weigh on the company’s revenues. Further, weak demand for servers, and sluggish enterprise IT spending, remain added concerns.
However, Cisco is certainly benefitting from robust adoption of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic. Ongoing momentum in Webex video conferencing and business productivity offerings on account of COVID-19 induced work-from-home demand environment remains noteworthy.
(You can read the full research report on Cisco here >>>)
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Sony Corp. (SNE) and FreeportMcMoRan Inc. (FCX).
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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
J&J’s (JNJ) Pharma Segment Resilient Amid Generic Headwinds
Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)
Cisco (CSCO) Rides on Security Products & Strategic Deals
Featured Reports
AbbVie (ABBV) U.S. Humira Demand Solid, Skyrizi, Rinvoq Shine
AbbVie’s key drug, Humira is seeing strong demand in the United States while generics are eroding ex-U.S. sales.
Ovintiv (OVV) to Gain from Multi-Basin Assets, Debt a Worry
The Zacks analyst likes Ovintiv’s well-established presence in some of North America’s highest-quality oil and gas basins but is worried over its high debt-to-capitalization of 62%.
Low Costs Aid American Airlines (AAL) Amid Coronavirus Woes
Per the Zacks analyst, reduced costs due to low fuel prices and decline in capacity are helping the company stay afloat amid coronavirus-induced weak passenger demand.
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
Per the Zacks analyst, Freeport should gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid falling production.
Restructuring Plans Aid Molina Healthcare (MOH), Costs Hurt
Per the Zacks analyst, Molina Healthcare’s (MOH)restructuring initiatives should improve its efficiency and restore profitability.
Abiomed (ABMD) Gains From Solid Prospects in Impella Platform
Abiomed has been gaining from its flagship Impella platform. The Zacks analyst is however concerned about pricing pressure.
Communication Business Aid MasTec (MTZ), Project Delays Ail
Per the Zacks analyst, MasTec is likely to benefit from the expansion of fiber optic networks and investments in wireless and 5G-related network.
New Upgrades
Rising Volumes in Pipelines, Acquisitions Aid ONEOK (OKE)
Per the Zacks analyst, volumes in ONEOK’s pipelines are increasing as producers are resuming productions. This along with cost-saving and expansion efforts are likely to benefit the utility.
Sony (SNE) Rides on Robust Game & Network Services Segment
Per the Zacks analyst, Sony’s Game & Network Services segment is benefiting from an increase in game software sales and PlayStation Plus subscriptions along with the launch of PlayStation 5.
Rite Aid (RAD) Gains from Strength in Elixir & Online Services
Per the Zacks analyst, Rite Aid’s Elixir business is gaining from rise in Medicare Part D membership. Also, expanded home delivery services amid the pandemic bodes well.
New Downgrades
Taubman’s (TCO) Merger Gets Nod, Price Appreciation Scope Nil
Per the Zacks analyst, given Taubman Centers’ shareholder approval for its merger with Simon Property that is likely to close in late 2020 or early 2021, chances are slim for a further price rise.
DXC’s Growth Prospects to be Hurt by Lower IT Spending
Per the Zacks analyst, DXC’s growth prospects might be hurt by soft IT spending as organizations are pushing back their investments in big and expensive tech products amid the coronavirus crisis.
Covid-19 Impacts, High Tariff Hurts Canadian Solar (CSIQ)
Per the Zacks analyst, global demand for solar equipment will decline for the first time in 20 years, due to covid-19. Also, imposition of tariff on solar panels and module import are tailwinds.
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Sony Corporation (SNE) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
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