Top Analyst Reports for Microsoft, Amazon & NVIDIA

Tuesday, March 8, 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 Microsoft Corporation (MSFT), Amazon.com, Inc. (AMZN) and NVIDIA Corporation (NVDA). 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 Microsoft have outperformed the Zacks Computer - Software industry over the past year (+19.3% vs. +11.6%), with the stock benefiting from strength in its Azure cloud platform amid accelerated global digital transformation as reflected by the second-quarter fiscal 2022 results. Teams’ user growth is gaining from continuation of remote work and mainstream adoption of hybrid/flexible work model. Recovery in advertising and job market boosted LinkedIn and Search revenues. Solid uptake of new Xbox consoles is aiding the gaming segment performance.
 

The company is witnessing growth in user base of its different applications including Microsoft 365 suite, Dynamics and Power Platform. Microsoft expects Surface revenues to grow in the mid-teens range, driven by strong demand for premium devices. However, stiff competition in the cloud space is likely to dent margins.
 

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

Shares of Amazon have outperformed the Zacks Internet – Commerce industry over the past two-year period (+52.7% vs. -25.9%) on the back of solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Further, strengthening relationship with third-party sellers is a positive. Also, growing momentum across Amazon Music is contributing well. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance. Also, expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers.
 

Further, robust Alexa skills and expanding smart home products portfolio are positives. Additionally, the company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds. However, growing expenses associated with supply-chain constraints and labor supply shortages remain concerns.
 

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

Shares of NVIDIA have outperformed the Zacks Semiconductor - General industry over the past year (+70.5% vs. +20.5%). The Zacks analyst believes that NVIDIA 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 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 >>>)
 

Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), HSBC Holdings plc (HSBC) and Visa Inc. (V).
 

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

Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)

Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)

Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)

Featured Reports

AbbVie's (ABBV) Pipeline & New Drugs Key to Long-Term Growth
The Zacks analyst says that AbbVie (ABBV) has an impressive late-stage pipeline. It has several new drugs which have the potential to drive revenues once Humira loses U.S. exclusivity in 2023.

Rising Visitors Aid Hawaiian Electric (HE), COVID Issues Hit
Per the Zacks analyst, rising visitor arrivals in Hawaii driven by recovering economy have been boosting Hawaiian Electric. Yet COVID-19 induced supply chain disruption might hurt the stock

Chip Crunch to Hurt Tenneco (TEN) Amid Cost-Saving Efforts
The Zacks analyst remains cautious as the ongoing chip crunch is likely to dampen Tenneco's revenues despite the firm gaining from a structural cost-discipline strategy and capex reductions.

Workday (WDAY) Rides on Solid Demand, Subscriber Traction
Per the Zacks analyst, Workday is likely to benefit from the growing adoption of subscription-based software solutions with the gradual revival of business operations in the post-pandemic era.

Buyouts & Focus on Entry-Level Buyers Aid PulteGroup (PHM)
Per the Zacks analyst, PulteGroup continues to benefit from its land acquisition strategies that have resulted in higher revenues and profitability.

Business Restructuring Aids HSBC (HSBC), Weak Revenues a Woe
Per the Zacks analyst, HSBC's business restructuring efforts, with plans to expand in Asia, and focus on profitable core businesses will aid financials. Yet, muted revenue growth is a major concern.

Growing Top-line Aid Visa (V), Elevated Expenses Hurt
Per the Zacks analyst, its rising revenues driven by new and renewed agreements, accretive buyouts and expansion of offerings has led to significant growth.

New Upgrades

SM Energy (SM) Banks On High-Grade Austin Chalk Inventory
The Zacks analyst is impressed by SM Energy's high-quality inventory of the Austin Chalk play, which has been leading to encouraging results due to the additional wells drilled in the region.

Trinity (TRN) Backed by Railcar Demand, Dividends & Buybacks
The Zacks analyst is encouraged by Trinity's growth owing to increase in demand for railcars. The company's efforts to reward its shareholders through dividends and share buybacks are impressive.

Strategic Growth Efforts to Support Hancock Whitney (HWC)
Per the Zacks analyst, Hancock Whitney's investments in growth markets are expected to be accretive to earnings and bolster presence in the area. Solid loan balances position it well for the future.

New Downgrades

Forex Volatility, Rising Expenses Concern Reinsurance Group (RGA)
Per the Zacks analyst, increasing expenses due to higher claims, interest credited and operating costs continues to affect the top line. Forex fluctuation raises financial risk.

Freight & Supply-Chain Costs Hurt Burlington Stores (BURL)
Per the Zacks analyst, Burlington Stores is witnessing higher freight and supply-chain costs for a while now. These costs have been hurting its margins and overall profitability.

Overdependence on NanoKnife Impairs AngioDynamics (ANGO)
The Zacks analyst is worried about AngioDynamics' overdependence on NanoKnife, which is limited to the surgical ablation of soft tissue. Pricing pressure is an added issue.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.