Top Analyst Reports for NVIDIA, Home Depot, Pfizer & Others

Monday, May 16, 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 Corporation (NVDA), The Home Depot, Inc. (HD), and Pfizer Inc. (PFE). 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 been hit hard during the ongoing market downdraft, as sentiment has shifted on high-multiple and fast-growth operators in a rising interest rate environment. The stock is down -40.4% in the year-to-date period vs. -23j.9% decline for the Zacks semiconductor industry and -15.8% pullback for the broader S&P 500 index. The Zacks analyst believes that the company should continue to benefit 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. NVIDIA's quarterly report next week (May 25th) is expected to spotlight these areas for strength. 

 

Expansion of NVIDIA GeForce NOW is expected to drive 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 >>>)

The Home Depot shares have lost -28.1% of their value in the year-to-date period against Lowe's -24.7% decline and -15.8% decline in the S&P 500 index. Driving this weakness is the perception of rougher days ahead for the housing sector in a rising mortgage rate environment that is expected to weigh on home affordability measures. While these issues are real, the Zacks analyst is pointing to continued strength in both Pro and DIY categories as well as digital momentum, along with strong demand for home-improvement projects, robust housing market trends, and ongoing investments.

Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. The Zacks analyst expects these favorable trends to to be on display in the company's quartelry report on Tuesday, May 17th. 

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

Shares of Pfizer have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+29.2% vs. +19.6%). The company boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The Zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer’s promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022.

Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth. However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth drivers beyond its COVID-related products due to competitive pressure.

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

Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), Salesforce, Inc. (CRM), and TotalEnergies SE (TTE).

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)

Focus on Pro Customers to Aid Home Depot's (HD) Top Line

COVID Jab and Pill to Drive Pfizer's (PFE) 2022 Revenues

Featured Reports

Disney (DIS) Banks on Disney+ Growth & Reopening of Parks
Per the Zacks analyst, growing popularity of Disney+ makes it a key catalyst for Disney's growth prospects. Moreover, reopening of theme parks bodes well for the company's prospects.

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.

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.

Freight Demand Aids Canadian National (CNI) Amid Volume Woes
Per the Zacks analyst, healthy freight demand and favorable pricing are driving the company's top line despite volumes softness due to supply chain disruptions among other headwinds.

Ubiquiti's (UI) Flexible Business Model to Deter Margin Woes
Per the Zacks analyst, Ubiquiti is likely to benefit from a flexible and adaptable business model in the long run despite short-term headwinds of supply chain disruptions and component shortage.

Cooper Companies (COO) Rides on Core CVI Amid Forex Woes
Per the Zacks analyst, strength in both Clariti and MyDay lenses continue to drive Cooper Companies' CVI segment. However, forex headwinds raise concern.

Enbridge (ENB) Gains From Mainline Liquid Pipeline System
Higher contributions from the Mainline liquid pipeline system, Gulf Coast and Mid-Continent system are aiding Enbridge. However, significant exposure to debt capital concerns the Zacks analyst.

New Upgrades

Murphy USA (MUSA) Gains from Proximity to Walmart Stores
The Zacks analyst likes the proximity of Murphy USA's fuel stations to Walmart supercenters and the consistent traffic that these stores attract, thereby driving above-average fuel sales volume.

Dillard's (DDS) Inventory Management Efforts Aid Margins
Per the Zacks analyst, Dillard's continued focus on inventory management and expense control, as well as improved consumer demand led to lower markdowns in Q1, which boosted gross margin.

Strong Deposits & Cost Reduction Supports Deutsche Bank (DB)
Per the Zacks analyst, Deutsche Bank's deposit growth driven by gradually improving economy aids its financials. Cost-reduction initiatives will help achieve cost/income ratio target of 70% by 2022.

New Downgrades

Johnson Controls (JCI) to be Hurt by Delayed Backlog Conversion
The Zacks Analyst is concerned about a delayed backlog conversion faced by Johnson Controls which has led to a cut in its 2022 guidance.

Soft Revenues, Weak Balance Sheet Hurt CNO Financial (CNO)
Per the Zacks Analyst, lower general account assets continue to dampen revenues of the company. Also, a levered balance sheet remains a concern.

Dismal Same-store sales Hurts Yum China (YUMC) Performance
Per the Zacks analyst, Yum China's performance in second-quarter 2022 continues to be impacted by Omicron variant. In first-quarter 2022, same-store sales dropped 8% year over year.

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Salesforce Inc. (CRM) : Free Stock Analysis Report
 
Pfizer Inc. (PFE) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
 
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