Advertisement

Top Analyst Reports for NVIDIA, salesforce & AstraZeneca

Tuesday, October 20, 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 NVIDIA (NVDA), salesforce.com (CRM) and AstraZeneca (AZN). 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 >>>

NVIDIA shares have outperformed the Zacks General Semiconductor industry in the year to date period (+132% vs. +35.8%) on the back of a demand boost 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 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. However, management expects COVID-19 pandemic to negatively impact near-term revenues by $100 million. Moreover, the U.S.-China trade war remains a key concern.

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

Shares of salesforce have gained +77.7% over the past year against the Zacks Computer Software industry’s rise of +47.1%. The Zacks analyst believes that Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for its products.

Salesforce’s sustained focus on introducing more aligned products as per customer needs is driving its top-line. Continued deal wins in the international market is another growth driver. Furthermore, the recent acquisition of Tableau positions the company to be a leader in business analytics for actionable results in everything from operations to HR.

However, stiff competition from Oracle and Microsoft is a concern. Besides, unfavorable currency fluctuations along with increasing investments in international expansions and data centers are an overhang on near-term profitability.

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

AstraZeneca’s shares have gained +5.1% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +0.4%. The Zacks analyst believes that AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure is hurting sales in the respiratory unit.

Nonetheless, AstraZeneca’s newer drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi, should keep driving revenues. Its pipeline is strong with abundance of catalysts lined up including data on COVID-19 vaccine candidate, AZD1222.

AstraZeneca has also engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like China. Cost-cutting efforts should drive earnings. The company has a mixed record of earnings surprises in the recent quarters. Estimates movement has been mixed ahead of Q3 earnings release.

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

Other noteworthy reports we are featuring today include JPMorgan Chase (JPM), Chevron (CVX) and Charter Communications (CHTR).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Sheraz Mian

Director of Research                                                             

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)

Digital Transformation and Acquisitions Aid salesforce (CRM)

Cancer Drugs Push AstraZeneca's (AZN) Sales, Pipeline Solid

Featured Reports

New Branches, Card Focus Aid JPMorgan (JPM) Amid Lower Rates

Per the Zacks analyst, opening new branches, strong mortgage banking business, and focus on credit card business will aid JPMorgan's financials.

Chevron (CVX) to Boost Permian Position with Noble Buy

The Zacks analyst believes Chevron's Noble buyout will expand its position in the Permian Basin but is worried over the company's reserve replacement ratio of just 44%.

Subscriber Gain Aids Charter (CHTR) Amid Stiff Competition

Per the Zacks analyst, subscriber growth in spectrum mobile products is benefiting Charter's growth amid rising competition from streaming service providers in the video market.

Growing Top line, Solid Cash Flows Aid Global Payments (GPN)

Per the Zacks analyst, Global Payments benefits from a healthy revenue stream, courtesy of buyouts, and alliances.

No-Debt Position Aids T. Rowe Price (TROW), High Costs a Woe

Per the Zacks analyst, driven by ample liquidity and zero debt, T. Rowe Price remains well poised for growth.

V.F. Corp (VFC) Gains From Strength in Online & China Businesses

Per the Zacks analyst, V.F. Corp is gaining from strong performance in digital and China businesses. Further, digital penetration is expected to account for more than 25% of revenues in fiscal 2021.

Waste Connections (WCN) Rides on Acquisitions Amid High Debt

The Zacks Analyst likes Waste Connections' buyout strategy to strengthen its services, expand market share and increase client base.

New Upgrades

Growing Electronic Warfare Systems Demand Aids Mercury (MRCY)

Per the Zacks analyst, the high demand for electronic warfare, increased upgrades on electronic subsystems and a continued flow of deals are aiding Mercury Systems' growth.

Expansion of Online Betting Bode Well For Boyd Gaming (BYD)

Per the Zacks analyst, Boyd Gaming (BYD) is poised to benefit from an increased focus on online betting and portfolio expansion. The company has expanded its partnership with FanDuel Group.

KBR Rides on Strong Backlog & Government Services Business

Per the Zacks analyst, KBR's robust backlog, strength in the Government Services unit, and accretive acquisitions are driving its top and bottom lines.

New Downgrades

Digital Ramp Up to Aid Advance Auto (AAP) Amid Weak Demand

While Advance Auto Parts' rising e-commerce efforts to give an omnichannel platform are driving the firm, coronavirus-led sluggish vehicle demand is hurting near-term profits, per the Zacks analyst.

Woodward (WWD) Hurt by Waning Sales in Aerospace Segment

Per the Zacks analyst, Woodward's Aerospace unit is struggling with declining commercial sales and aircraft production rates resulting from the COVID-19 pandemic.

Amerisafe (AMSF) Rides on Strong Cash Flows Amid Revenue Dip

Per the Zacks analyst, reduction in federal taxes paid and decline in underwriting expenses paid have been driving strong cash flows.


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
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
JPMorgan Chase Co. (JPM) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
salesforce.com, inc. (CRM) : Free Stock Analysis Report
 
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
 
AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research