Top Research Reports for Amazon.com, NVIDIA & Tesla
Wednesday, July 5, 2023
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 Amazon.com, Inc. (AMZN), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). 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 >>>
Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry (+55.1% vs. +31.7%) as well as the broader market (+55.1% vs. +17.1% for the S&P 500 index) this year. The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance.
Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.
However, inflationary pressure, supply-chain constraints, geopolitical tensions and foreign currency headwinds remain concerns. Also, growing transportation and fulfillment center costs remain concerns.
(You can read the full research report on Amazon.com here >>>)
Shares of NVIDIA have handily outperformed the Zacks Semiconductor industry (+190.2% vs. +74.6%) as well as the Zacks Tech sector (+190.2% vs. +37.2%) in the year-to-date period. Driving Nvidia's outperformance is strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space.
However, NVDA’s near-term prospects look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
Tesla shares have outperformed the Zacks Automotive - Domestic over the past year (+20.7% vs. +13.3%). The company’s record second-quarter 2023 deliveries signal its growing dominance in the electric vehicle (EV) market as it continues to expand its production and sales globally. The Zacks analyst expects deliveries to see an annualized growth of around 37% in 2023.
Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. We anticipate automotive revenues to rise 19% this year.
Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. The wider adoption of Tesla's NACS connector by other automakers and EV charging companies is also boosting the stock. Amid such tailwinds, we are bullish on Tesla.
(You can read the full research report on Tesla here >>>)
Other noteworthy reports we are featuring today include Meta Platforms, Inc. (META), Thermo Fisher Scientific Inc. (TMO) and Canadian National Railway Company (CNI).
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
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Tesla (TSLA) Rides High on Robust Model 3/Y Deliveries
Featured Reports
User Growth, Instagram Strength Aids Meta Platforms (META)
Per the Zacks analyst, Meta Platforms is benefiting from a strengthening user base. Moreover, improving engagement levels for Instagram, Messenger and WhatsApp bode well.
Thermo Fisher (TMO) Advances in Bioprocess, End Market Up
The Zacks analyst is upbeat about Thermo Fisher's progress in bioprocessing for cell therapy. The academic and government end market shows growth in biosciences, chromatography and mass spectrometry.
Freight Demand Aids Canadian National (CNI), Liquidity Hurts
The Zacks analyst is impressed with Canadian National's impressive freight demand and a solid pricing environment. However, low liquidity is a headwind.
Hershey's (HSY) Sales Gain on Pricing Actions & Solid Demand
Per the Zacks analyst, Hershey has been benefiting from solid pricing actions and demand for its brands. In first-quarter 2023, pricing and solid consumer demand led to sales growth across segments.
Halliburton (HAL) to Benefit from North American Exposure
The Zacks analyst believes that Halliburton can take advantage of the tight fundamentals of the North American land drilling space through its market-leading pressure pumping operations.
Solid Retirement Business Aids Principal Financial (PFG)
Per the Zacks analyst, Principal is set to grow on the strength of retirement and long-term savings business in Latin America and Asia as well as group benefits and protection in the United States.
Mirati's (MRTX) Dependence on Krazati Revenues A Woe
Following FDA approval in second-line NSCLC, Krazati is the first approved drug in Mirati's portfolio. The Zacks Analyst, however is concerned as the drug faces stiff competition from Amgen's Lumakras
New Upgrades
Honda (HMC) Prospects Solid on Expanding Electric Lineup
Per the Zacks analyst, Honda's focus on expanding electric lineup is poised to boost prospects. Also, global restructuring move to control costs and optimize production capacity is encouraging.
Masco (MAS) Banks on Solid Long-Term Prospect, Top Brands
Per the Zacks analyst, Masco expects solid growth in the long run, on strong pricing actions and operational improvements. Market share gains in major markets and growth in PRO paint also bode well.
Wix.com (WIX) Benefits From Diversified Product Portfolio
Per the Zacks analyst, Wix's performance is gaining from robust uptake of Wix Editor and other new e-commerce applications. Increasing partner revenues and B2B partnerships are tailwinds.
New Downgrades
Labor Costs, Poor Financials Hurt Spirit AeroSystems (SPR)
Per the Zacks analyst, labor and supply-chain cost growth on the B787 program as well as forward loss related to these might hurt Spirit AeroSystems. It also boasts a weak financial position
Weak Asset Quality, High Costs Ails Credit Acceptance (CACC)
Per the Zacks analyst, rising expenses and tough operating backdrop are likely to hurt Credit Acceptance's bottom line. Worsening credit quality and high levels of debt are other key near-term woes.
Higher Expenses, Loan Concentration Hurt Fifth Third (FITB)
Per the Zacks analyst, an increase in operating expenses is a concern for Fifth Third. High exposure to commercial loans can be risky for the company amid uncertain economy.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Canadian National Railway Company (CNI) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
