Top Stock Reports for NVIDIA, UPS & Intuit

Thursday, February 3, 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), United Parcel Service, Inc. (UPS), and Intuit Inc. (INTU). 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 outperformed the Zacks General Semiconductor industry over the past year (+84.8% vs. +36.4%). The Zacks analyst believes that NVIDIA has been benefiting from the coronavirus-induced work and learn-from-home wave as well as strong growth in GeForce desktop and notebook Graphic Processing Units.

A surge in Hyperscale demand has been boosting NVDA’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. Pandemic-related woes, however, are likely to weigh on near-term revenues.

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

United Parcel Service shares have gained +22.9% over the past six months against the Zacks Transportation - Air Freight and Cargo industry’s rise of +7.4%. The Zacks analyst appreciates UPS' efforts to reward its shareholders through dividends and buybacks. UPS paid out dividends worth $2.6 billion through the first nine months of 2021.

An impressive liquidity position and robust free cash-flow generation has been supporting its shareholder-friendly activities. In August, UPS' board approved a new share buyback program worth $5 billion, replacing its existing $2.1-billion program. High operating expenses and rising fuel costs, however have been hurting the bottom line.

(You can read the full research report on United Parcel Service here >>>)

Shares of Intuit have lost -10% in the last three months against the Zacks Computer Software industry’s loss of -10.4%. Intuit’s near-term prospect looks gloomy due to pandemic-related woes. Higher costs and expenses on the back of increased investments in marketing and engineering have also been hurting its bottom-line results.

The Zacks analyst, however, believes that Intuit has been benefiting from strong momentum in online ecosystem revenues as well as solid professional tax revenues. Intuit’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. Strength in its lending product, QuickBooks Capital, remains a positive.

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

Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), EOG Resources, Inc. (EOG) and Vertex Pharmaceuticals Incorporated (VRTX).

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)

Dividends & Buybacks Boost UPS Despite Operating Cost Woes

Intuit (INTU) Rides on Product Refresh, Higher Subscriptions

Featured Reports

Digital Investments Brighten AB InBev's (BUD) Growth Prospects
Per the Zacks analyst, AB InBev's investments in B2B platforms, e-commerce, and digital marketing have been aiding growth.

EOG Resources (EOG) Banks on Oil-Rich Delaware Basin Assets
The Zacks analyst believes that EOG Resources' 6300 net undrilled premium locations in the Delaware basin will drive oil production growth.

Vertex (VRTX) Cystic Fibrosis Sales Up, Non-CF Pipeline Solid
Vertex's cystic franchise (CF) sales are rising despite the pandemic. The Zacks analyst is encouraged by the rapid progress of its non-CF pipeline with data from multiple programs expected in 2022.

Acquisitions and Strong Capital Position Benefit Aon (AON)
Per the Zacks analyst, buyouts and tie-ups have enhanced Aon's capabilities, which, in turn, have driven revenues.

Illumina (ILMN) Banks on Strategic Pacts amid Stiff Rivalry
The Zacks analyst is optimistic about Illumina's expansion strategy through new purchases and strategic partnerships. Yet, stiff competition remains a concern.

Cost Management & Regulated investment Aid Exelon (EXC)
Per the Zacks analyst, Exelon's cost management initiatives will have a positive impact on margins and its planned $27B investments through 2024 will strengthen its operation.

Pool Corp (POOL) Banks on Expansion Efforts, High Costs Ail
Per the Zacks analyst, Pool Corp continues to focus on expansions through acquisitions to boost customer relationships and services.

New Upgrades

Efficiency and Inorganic Initiatives to Aid UBS Group (UBS)
Per the Zacks analyst, UBS Group's focus on efficiency programs to support financials is encouraging. Solid capital position aiding expansion strategies will likely aid long-term growth.

Higher Revenues, Loans & Deposits Support Cullen/Frost (CFR)
Per the Zacks analyst, Cullen/Frost's rising revenues are a positive backed by strong loan and deposit balances growth.

Badger Meter (BMI) Gains Momentum From Solid Order Trends
Per the Zacks analyst, strong order rates for innovative water solutions and greater customer acceptance, driven by various cost-saving efforts, are likely to boost Badger Meter's near-term margins.

New Downgrades

Weak Power & Healthcare Segments Hurt General Electric (GE)
Per the Zacks analyst, General Electric is struggling with weakness across its gas power, steam power, healthcare and renewable energy businesses amid supply-chain challenges in the industry.

Chip-Crunch Related Headwinds to Hurt Gentex (GNTX)
The Zacks analyst is of the view that electronic component shortages along with soaring commodity, labor, and logistics costs are likely to hurt Gentex's margins in 2022.

Rising Net Outflows, Expenses Hurt Artisan Partners (APAM)
Per the Zacks analyst, any rise in net outflows will hurt Artisan Partners' assets under management growth. Also, rising costs due to technology investments might keep the bottom line under pressure.

Just Released: Zacks Top 10 Stocks for 2022

In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?

From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.