Thursday, April 7, 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), The Coca-Cola Company (KO), and Thermo Fisher Scientific Inc. (TMO). 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 (+70.6% vs. +19.4%). The Zacks analyst believes that the company is benefiting from the 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 the 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 Coca-Cola have outperformed the Zacks Beverages – Soft drinks industry over the past year (+22.4% vs. +15.5%). The company has outpaced the industry in a year on a robust surprise trend, which continued in fourth-quarter 2021. Its top and the bottom line surpassed estimates for the fourth straight quarter.
The Zacks analyst believes that the company is benefited from the strategic transformation and ongoing recovery around the world. Revenues gained from the investments and ongoing recovery in markets, where the pandemic-led disruptions are subsiding. Strength across the majority of the markets, investments in the marketplace, recovery in certain markets as well as the cycling of last year’s pandemic-led impacts aided volumes.
The company provided an upbeat 2022 view. It is poised to gain from innovations and accelerating digital investments. However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spending is also concerning.
(You can read the full research report on Coca-Cola here >>>)
Shares of Thermo Fisher have outperformed the Zacks Medical – Instruments industry over the past year (+24.9% vs. +0.4%). The company delivered 8% organic growth in the base business, which is ahead of streets expectations. It witnessed robust year-over-year revenue growth across the Analytical Instruments and the Laboratory Products and Biopharma Services segments.
The Zacks analyst believes that the company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.
However, the year-over-year decline in fourth-quarter earnings raises apprehension. The decline in revenues in the other two segments is also disappointing. Contraction of both margins does not bode well either.
(You can read the full research report on Thermo Fisher here >>>)
Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), Philip Morris International Inc. (PM), and SAP SE (SAP).
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)
Coca-Cola’s (KO) Digital Investments to Aid the Top Line
Thermo Fisher (TMO) Banks on PPD Buyout Amid Stiff Rivalry
Featured Reports
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Per the Zacks analyst, Salesforce is benefiting from ongoing digital transformations and adoption of its cloud services. Moreover, strategic acquisitions like Slack and Tableau are positive.
Phillip Morris (PM) Gains From Smoke-Free Product Category
Per the Zacks analyst, Philip Morris has been gaining from solid focus on the reduced-risk or smokeless products category. In fourth quarter, sales from RRP’s increased 23.4% year over year.
Solid Momentum in Cloud Business Driving SAP’s Performance
Per the Zacks Analyst, SAP’s performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.
Vale (VALE) Bets on Rising Iron Prices, Cost Control Efforts
Per the Zacks analyst, rising iron ore prices and demand, lower debt levels and focus on improving productivity and lowering costs will drive growth for Vale.
Petrobras (PBR) Aided by Brazil’s Pre-Salt Oil Reserves
The Zacks analyst believes that Petrobras’ stake in Brazil’s huge pre-salt oil reserves puts it in an enviable position to maintain an impressive production growth profile for years to come.
Sun Life Financial (SLF) Set to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set for grow on the strength of its Asia business that are expected to provide higher return and growth as well as expanding global asset management business.
Higher Airfreight Services Revenues Aid Expeditors (EXPD)
The Zacks analyst is encouraged by the substantial rise in airfreight services revenues due to increased usage of charters to meet customer needs.
New Upgrades
High Metal Prices, Operation Efficiency Aid BHP Group (BHP)
The Zacks analyst believes rising iron and copper prices along with BHP’s strong cash flow, focus on lowering debt and efforts to make operations more efficient will drive growth.
Dave & Buster’s (PLAY) Benefits from Expansion Efforts
Per the Zacks analyst, Dave & Buster’s continues to benefit from disciplined new store growth strategy in both new and existing markets, new menu, optimized marketing and technology investments.
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies’s presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
New Downgrades
Stiff Competition & High Costs Hurt U.S. Cellular (USM)
Per the Zacks analyst, apart from intense competition, U.S. Cellular is grappling with increasing costs associated with network integration, aggressive equipment pricing & wireless technology upgrade.
Seagen’s (SGEN) High Reliance On Adcetris for Revenues a Woe
Per the Zacks analyst, Seagen is heavily dependent on lead cancer drug, Adcetris for revenues which is a concern. Stiff competition from other companies in the target market also remains a headwind.
Rising Net Outflows, Expenses Hurt Artisan Partners (APAM)
Per the Zacks analyst, rising net outflows hurt Artisan Partners’ assets under management growth. Also, rising costs due to investments in technology might keep the bottom line under pressure.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
CocaCola Company The (KO) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
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