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The Zacks Analyst Blog Highlights: Nvidia, Amazon, Microsoft and Alibaba

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For Immediate Release

Chicago, IL - Jan 05, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include NvidiaNVDA , AmazonAMZN , MicrosoftMSFT and AlibabaBABA .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Why You Should Buy Nvidia Ahead of CES 2018

On Sunday night, Nvidia founder and CEO Jensen Huang will take the stage to kick off this year's International Consumer Electronics Show. The latest Fortune "Businessperson of the Year" will present on his company's breakthroughs in automotive technology-just one of several growth catalysts that management believes will lead Nvidia to the top of the technology world.

The Santa Clara, California-based chip-making giant, which specializes in high-performance graphics processing units (GPUs) used by PC gamers, has emerged as a pioneer in several growing fields, including self-driving cars and artificial intelligence.

Investors have rewarded Nvidia for its innovations. The stock is a Wall Street darling and has gained more than 100% over the past year. In 2017, Nvidia spent a staggering 30 weeks as a Zacks Rank #2 (Buy) or higher, including 24 weeks as a Zacks Rank #1 (Strong Buy)-so when Huang walks on stage to present at CES 2018, he will likely do so with a confident strut.

The conference is always a big event for Nvidia, which has made a tradition of kicking off the event with a high-energy press conference packed with big news. In recent years, it has debuted the DRIVE PX AI automotive computing platform, the SHIELD game-streaming platform, and a self-driving car partnership in front of the massive crowd in Las Vegas.

As investors who follow cutting-edge technology companies know, events like CES can cause rapid share price momentum. Traders love to react to new product announcements, and NVDA has actually seen a response to the event in recent years.

Considering Nvidia's history of making marquee announcements at CES, it seems reasonable to assume that we could see a major reveal this week. If that does happen, investors might be in store for another strong post-CES run.

Moreover, NVDA is currently sporting a Zacks Rank #1 (Strong Buy). The stock owes its great Zacks Rank to some remarkable earnings estimate revision activity, as our consensus estimate for its upcoming fiscal year has improved to $4.67 per share from the $3.95 it stood at just 60 days ago.

Nvidia does present some valuation concerns. Shares are currently trading at more than 50 times forward earnings and 53 times trailing 12-month earnings. And its P/S ratio of 14.34 and PEG ratio of 4.95 do nothing to alleviate those concerns.

But the company is also sporting a strong-and improving-balance sheet. Nvidia is generating about $3.48 in cash per share right now, and management is growing its cash flow at a rate of over 123%. Its net margin also sits at a better-than-industry-average 29%.

And while Nvidia may feel overvalued to some, these are the prices investors have to pay these days for dominant and industry-leading technology. As my colleague Kevin Cook pointed out in his profile of Nvidia as Jan. 3's " Bull of the Day ," it truly feels like "everybody is their customer now." Indeed, Nvidia can confidently boast nearly every major cloud platform as a client, including Amazon, Microsoft and Alibaba.

Meanwhile, Nvidia remains the number one choice among its core demographic: serious video gamers. In its most recent quarter, gaming revenues were $1.561 billion, up from $1.244 billion last year.

And Nvidia appears to be focusing on automotive technology at this year's CES, so investors should stay tuned to find out what the company has in store next. Datacenters and gaming have provided the firm's foundation, and now its other projects are on the cusp of taking off.

Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Amazon.com, Inc. (AMZN): Free Stock Analysis Report

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NVIDIA Corporation (NVDA): Free Stock Analysis Report

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


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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