Top Analyst Reports for Alibaba, Mastercard, NVIDIA & Others

Tuesday, January 14, 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 Alibaba Group (BABA), Mastercard (MA), NVIDIA (NVDA) and others. 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 >>>

Alibaba’s shares have outperformed the Zacks Internet Commerce industry over the past year (+52.7% vs. +22.6%) and the Zacks analyst believes this performance momentum to continue given steady improvement in core commerce along with strong growth in metrics.

Further, Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance. Its New Retail strategy is also gaining significant momentum in the market. This is aiding growth in its Tmall Import, Hema fresh food grocery business and Intime Department Stores.

Additionally, the consolidation of Ele.me and Cainiao Network is acting as a tailwind. However, the company’s increasing investments, uncertain economy and macro headwinds in China are major concerns. Also, rising competition poses a risk.

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

Shares of Mastercard have gained +13.1% in the past three months against the Zacks Financial Transaction Services industry's rise of +10%. The Zacks analyst believes that the company's revenues have been gaining from higher switched transactions, increase in cross-border volume and gross dollar volume.

Numerous acquisitions made over the years have fueled its inorganic growth. The company is benefiting from shifts in payments, from physical to digital. Investment in technology has also kept the company at the forefront of the rapidly changing payments industry. Its solid capital position enables investment in business.

However, escalating costs might put pressure on margins. In order to gain customers and new business, Mastercard has been incurring high levels of costs under rebates and incentives, which remain a concern.

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

NVIDIA's shares have gained +50.6% over the past six months against the Zacks General Semiconductor industry's rise of +25.3%. The Zacks analyst believes that NVIDIA is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues.

Solid momentum of its real-time ray tracing technology is also a positive. Increase in Hyperscale demand is a tailwind for Data Center business as well. Growing adoption in the inference market is an upside too. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon.

Additionally, strength across mobile workstation products is aiding Professional Visualization revenues. However, in the near-term management expects strong sequential growth in Data Center to be offset by a seasonal decline in GeForce notebook GPUs and SoC modules for gaming platforms. Moreover, the U-China trade war remains a key concern.

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

Other noteworthy reports we are featuring today include Apple (AAPL), Lockheed Martin (LMT) and Tesla (TSLA).

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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

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Strategic Buyouts Aid, Elevated Expense Hurt Mastercard (MA)

NVIDIA (NVDA) Gets a Boost From Gaming Business Recovery

Featured Reports

Expanding Portfolio, Services Strength to Aid Apple (AAPL)

Per the Zacks analyst, expanding portfolio with the launch of new iPhones and Watch series 5 and Apple TV+ bodes well for Apple's prospects.

Order Flows to Aid Lockheed (LMT), F-35 Budget Cut A Risk

Per the Zacks analyst, steady contract flow from Pentagon and U.S. allies boost Lockheed's revenue growth.

Gigafactory 3 Progress to Aid Tesla (TSLA) Amid High Capex

While the ramp up of production at Shanghai Gigafactory is a positive for Tesla, the Zacks analyst is worried about high capex and R&D costs, which may dent profits.

Fiserv (FISV) Rides on First Data Buyout, Competition Rife

Per the Zacks analyst, buyout of First Data will help Fiserv emerge as one of the world's largest payments and financial technology providers.

ConocoPhillips (COP) Banks on Oil-Rich Eagle Ford Acres

The Zacks analyst believes that huge acreage holdings in the prospective Eagle Ford Shale play will drive ConocoPhillips' oil volumes.

Allergan (AGN) Buyout by AbbVie Rewarding for Shareholders

With Restasis expected to face generic competition, the merger with AbbVie may be rewarding for its shareholders, per the Zacks analyst.

Strategic Initiatives Aid Aon (AON), High Debt Level Hurts

Per the Zacks analyst, a number of acquisitions and collaborations have helped Aon enhance its capabilities, which has in turn improved its bottom-line.

New Upgrades

SYNNEX (SNX) Rides on Product Strength, Acquisition Strategy

Per the Zacks analyst, SYNNEX is benefiting from solid demand for its portfolio of products and services. Also, the company's buyout of Covergys is a key driver.

Upbeat Unit Revenues & Low Fuel Costs Aid Gol Linhas (GOL)

The Zacks analyst is impressed by the solid unit revenue growth owing to strong air travel demand. Modest fuel prices and improving yields further add to this optimism.

Silicon Motion (SIMO) Gains from Growth in Embedded Storage

Per the Zacks analyst, Silicon Motion has been gaining from its leading position in client SSD controllers.

New Downgrades

High Costs, Poor Asset Quality Hurt Credit Acceptance (CACC)

Per the Zacks analyst, elevated expenses due to rise in compensation and marketing costs will hurt Credit Acceptance's profits. Deteriorating credit quality due to rise in provisions remains a woe.

Sluggish Markets & Higher Costs to Hurt AGCO Corp (AGCO)

Per the Zacks Analyst AGCO's results will bear the brunt of weak market for the North and South America segment, elevated expenses and unfavorable foreign currency headwinds.

Bed Bath & Beyond's (BBBY) Dismal Comps Trend Hurts Sales

Per the Zacks analyst, Bed Bath & Beyond has been witnessing soft comps for a while now due to lower store transactions. Also, dismal comps trend is mainly hurting the company's top-line performance.

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Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
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