Top Analyst Reports for NVIDIA, Caterpillar & General Electric

Wednesday, January 31, 2024

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), Caterpillar Inc. (CAT) and General Electric Company (GE). 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 Semiconductor - General industry over the past year (+58.5% vs. +22.7%) on the back of the company’s strong leverage artificial intelligence (AI), high-performance computing and accelerated computing.

The data center end-market business is likely to benefit from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures. A surge in hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space. However, its near-term prospects are likely to be hurt by softening IT spending amid macroeconomic headwinds.

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

Shares of Caterpillar have modestly outperformed the Zacks Manufacturing - Construction and Mining industry over the past year (+24.6% vs. +23.7%). The company’s revenues and earnings have grown year over year for eleven straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions, which offset the impact of the supply-chain snarls and cost pressures.

The Construction Industries segment is expected to benefit from the rising construction activities in the United States and other parts of the world. Backed by demand for commodities fueled by the energy-transition trend, a thriving mining sector will aid the Resource Industries segment.

The Energy & Transportation segment remains well-poised for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A strong liquidity position, investments in expanding services and digital initiatives will help Caterpillar deliver outsized returns.

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

General Electric shares have outperformed the Zacks Diversified Operations industry over the past year (+63.2% vs. +3.8%). The company is witnessing strength in its Aerospace segment, driven by robust demand and solid execution in commercial engines and services.

With strength in GE Gas Power services and growth in Grid business and Onshore Wind in North America, signs of improvement in GE Vernova (the combined operations of GE Power and Renewable) hold promise. Driven by solid momentum across its businesses, the company raised its 2023 guidance.

Acquisitions made over time are also likely to be beneficial. Its policy of rewarding shareholders handsomely works in its favor. The firm's improved liquidity position also adds to its strength. However, supply chain disruptions in the defense market continue to take a toll on the company’s operations.

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

Other noteworthy reports we are featuring today include Union Pacific Corporation (UNP), Arista Networks, Inc. (ANET) and Schlumberger Limited (SLB)

Director of Research

Sheraz Mian

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

NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships

Strong Demand, Strategic Initiatives Aid Caterpillar (CAT)

Strength in Aerospace Segment Drives General Electric (GE)

Featured Reports

Union Pacific (UNP) Strong on Dividends Amid Volume Woes
The Zacks analyst is encouraged by the company's efforts to boost shareholder value through dividends and buybacks. However, lackluster volumes are worrisome.

SLB Benefits From Increased Oilfield Service Demand Globally
SLB anticipates another year of margin growth from increased service pricing since overall operations see broad-based expansion. Yet, its significant debt exposure concerns the Zacks analyst.

Improving Fees and Commissions Aid Arthur J. Gallagher (AJG)
Per the Zacks analyst, Arthur J. Gallagher is poised to grow on improving fees and commissions that in turn is driving organic revenues growth. However, rising expenses weighing on margin concerns.

Prudent Buyouts Fuel Hershey (HSY), High Costs a Trouble
Per the Zacks analyst, Hershey is set to keep benefiting from strategic acquisitions. However, increased selling, marketing and administrative expenses is a concern for the company.

Solid Travel Spending Aids Las Vegas Sands (LVS), Costs Ail
Per the Zacks analyst, Las Vegas Sands is benefiting from solid improvement in travel and tourism demand in Macao and Singapore. However, high costs and expenses are marring prospects.

Illumina (ILMN) Oncology Business Grows amid Stiff Rivalry
Per Zacks analyst Illumina's TruSight Oncology assay, TSO 500 are likely to register growth led by increased utilisation and broader adoption. Yet, stiff rivalry remains a concern.

Ventas (VTR) to Ride on Healthy Senior Housing Fundamentals
Per the Zacks Analyst, Ventas is well-poised to benefit from the rise in senior citizens' healthcare expenditure and favorable outpatient visit trends. However, high interest rate is a key concern.

New Upgrades

Arista (ANET) Rides on Portfolio Strength, Solid Demand
Per the Zacks analyst, Arista is poised for growth in data-driven cloud networking business with proactive platforms backed by industry-leading capacity, low latency, port density and power efficiency

Portfolio Strength, Digital Revenues Steers Take-Two (TTWO)
Per the Zacks analyst, Take-Two's digital revenues is driven by solid demand for , Red Dead Redemption and Grand Theft Auto portfolio of games.

ImmunoGen (IMGN) Rides on Robust Elahere Sales Performance
Per the Zacks analyst, initial sales of ImmunoGen's lead cancer drug, Elahere, have been robust, and the trend is likely to continue. Collaborations with big healthcare companies are also a positive.

New Downgrades

Labor Shortage, Rising Fuel Price May Hurt Embraer (ERJ)
Per the Zacks analyst, shortage of skilled labor may cause Embraer to miss its delivery schedule for certain products. Also, rising fuel price might lead to lower jet orders for the stock.

B&G Foods (BGS) Struggles with Lower Volumes & Higher Costs
Per the Zacks analyst, B&G Foods' net sales declined 4.9% year over year to $502.7 million in Q3 fiscal 2023, mainly from lower volumes and divesting Back to Nature. Also, higher cost is a concern.

High Costs, Subdued IB Business Hurt Moelis & Company (MC)
Per the Zacks analyst, a tough operating backdrop due to macroeconomic uncertainty is a headwind for Moelis & Company's IB business. Also, mounting expenses will hurt its profitability to some extent.

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General Electric Company (GE) : Free Stock Analysis Report

Caterpillar Inc. (CAT) : Free Stock Analysis Report

Schlumberger Limited (SLB) : Free Stock Analysis Report

Union Pacific Corporation (UNP) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Arista Networks, Inc. (ANET) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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