Thursday, April 8, 2021
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 ((NVDA)), Bank of America ((BA)C), and McDonald’s (MCD). 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 (+118% vs. +63.3%) on the back of the company’s emergence as a force to be reckoned with in all the major growth markets within the broader chip space.
It is also benefiting from strong growth in GeForce desktop and notebook GPUs, 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.
Additionally, collaboration with Daimler-owned 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.
(You can read the full research report on NVIDIA here >>>)
Bank of America shares have gained +55.8% over the last six months against the Zacks Major Regional Banks industry’s gain of +52.7%. The Zacks analyst believes that opening of new branches, improvement in digital offerings and efforts to manage expenses are expected to aid the company’s profitability in the quarters ahead.
A strong balance sheet and liquidity position are expected to continue aiding its financials. The company will likely continue to enhance shareholder value through sustained capital deployments.
However, near-zero interest rates and no near-term chance of any change in the same are expected to keep hurting the bank’s margins and interest income to an extent. Further, the company’s high dependence on the volatile nature of the capital markets to generate fee income makes us apprehensive.
(You can read the full research report on Bank of America here >>>)
Shares of McDonald’s have gained +7.6% in the past three months against the Zacks Restaurants industry’s gain of +8.4%. The Zacks analyst believes that the company’s increased focus on drive-thru, delivery & take-away is likely to benefit the company going forward.
In order to boost its digital offerings across drive thru, takeaway, delivery, curbside pick-up and dine-in categories, the company is currently working on a new digital experience growth engine “MyMcDonald’s”.
Additionally, the company is making every effort to drive growth in international markets as well. Although the company has reopened most of its restaurants, it is likely to witness dismal traffic due the social distancing protocols.
(You can read the full research report on McDonald’s here >>>)
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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))
Sony (SONY) Rides on Solid Traction from PS5 Gaming Console
Per the Zacks analyst, Sony is gaining traction from PlayStation 5, as it aims to concentrate on the premium segment of the branded products market to maximize growth.
Buyouts, Assets Balance Aid BlackRock (BLK), High Costs Ails
Per the Zacks analyst, strategic acquisitions, solid assets under management balance and focus on the active equity business will support BlackRock.
Per the Zacks analyst, efforts made by the company to control costs will aid its bottom line and margins, especially when revenue growth remains suppressed.
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Per the Zacks analyst, steady order flow continues to boost Lockheed’s revenue growth. Yet, the U.S. government’s tiff with Turkey over its involvement in Russia’s S-400 may hurt the F-35 program.
Cost Cuts Boost Norfolk Southern (NSC) Despite Volume Woes
The Zacks analyst is impressed by the company’s efforts to control costs.
Inorganic Growth Aids, High Costs Hurt HCA Healthcare (HCA)
Per the Zacks analyst, a number of strategic acquisitions have strengthened its portfolio and added to its scale, thereby leading to overall growth.
Enterprise (EPD) Banks on $3.6B Midstream Growth Projects
The Zacks analyst believes that Enterprise will generate additional cash flow from under-construction midstream growth projects worth $3.6 billion.
Strategic Buyouts Boosts Martin Marietta’s (MLM) Prospects
The Zacks analyst stresses that with more than 90 acquisitions, Martin Marietta’s systematic inorganic strategy has strengthened its position in the Aggregates business.
Solid Demand & Product Innovation to Drive Middleby (MIDD)
Per the Zacks analyst, revival in restaurant business backed by modest recovery across core and emerging markets and investments in innovation will continue to lend momentum to Middleby.
Higher Methanol Prices, Geismar Plants Aid Methanex (MEOH)
Per the Zacks analyst, Methanex will gain from strong production at its Geismar facilities. Higher methanol prices will also drive its margins.n
Twilio’s (TWLO) Profitability To Hurt By Elevated Expenses
Per the Zacks analyst, elevated investment toward enhancing sales capabilities to gain enterprise customers and grab larger market share to weigh on Twilio’s bottom-line results in the near term.
Honda (HMC) to be Hurt By Chip Crunch & High Capex
Amid the chip crunch, Honda has slashed production and revenue forecasts for fiscal 2021. The Zacks analyst is also worried about high spending on e-mobility which may dent Honda’s near-term margins.
Debt Maturity Profile to Weigh on Canadian Natural (CNQ)
The Zacks analyst is worried that the company is set to face debt maturities each year out till 2027, thereby exposing it to refinancing risk at a time of extremely volatile commodity prices.
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Sony Corporation (SONY): Free Stock Analysis Report
NVIDIA Corporation ((NVDA)): Get Free Report
McDonalds Corporation (MCD): Free Stock Analysis Report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Bank of America Corporation ((BA)C): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
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Zacks Investment Research
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