Yahoo Finance Top Research Reports for NVIDIA, Home Depot & Vertex Pharmaceuticals
Thursday, August 8, 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), The Home Depot, Inc. (HD) and Vertex Pharmaceuticals Incorporated (VRTX), as well as a micro-cap stock Moving iMage Technologies, Inc. (MITQ). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 were hit hard in the recent market downturn, but the stock appears to have regained its earlier momentum in recent days; the stock is now up +109.5% in the year-to-date period vs. +9.3% gain for the S&P 500 index. Driving the stock's strong performance is the company's leadership position in the AI-centric chips.
The data center end-market business is benefiting 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 higher sell-ins to partners across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.
Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the 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 Home Depot have gained +4.3% over the past year against the Zacks Building Products - Retail industry’s gain of +5.0%. The company has been witnessing benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.
The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. It on track with its strategic investments to build a Pro ecosystem.
However, the company's top and bottom-lines declined year over year in first-quarter fiscal 2024. Results were impacted by a deflation in lumber and copper prices and pressures from softness in big-ticket discretionary categories, which weighed on comps.
(You can read the full research report on Home Depot here >>>)
Vertex Pharmaceuticals shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+14.5% vs. -6.0%). The company’s cystic franchise sales continue to grow, driven by higher sales of Trikafta/Kaftrio in younger age groups. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity.
Vertex has additional near-term launches planned — suzetrigine in acute pain and vanza triple in CF. It is rapidly progressing its mid- and earlier-stage pipeline, with multiple milestones expected in the second half of the year.
The Alpine acquisition has added povetacicept, which Vertex believes has a “pipeline in a product” potential. However, Vertex’s dependence on just the CF franchise for revenues is a concern. CF sales are slightly slowing down.
(You can read the full research report on Vertex Pharmaceuticals here >>>)
Shares of Moving iMage Technologies’ have underperformed the Zacks Technology Services industry over the past six months (-2.1% vs. -27.7%). This microcap company with market capitalization of $6.11 million is witnessing supply chain disruptions, competition from OTT platforms and regulatory compliance costs pose risks.
Nevertheless, Moving iMage Technologies' new share repurchase program, effective until Jun 30, 2024, signals confidence in financial stability and growth. This follows a previous program where 6.3% of shares were repurchased.
MiT's significant contract win with Alamo Drafthouse Cinema and expansion into high-margin SaaS and subscription-based products like MiTranslator and CineQC promise higher margins and recurring revenues. Diversifying into live entertainment and esports markets mitigates cinema industry cyclicality.
Operating in a growing market, MiT is well-positioned to capitalize on technological advancements and increased demand for high-quality cinema experiences. Financial stability, as evidenced by $5.9 million in cash, supports growth.
(You can read the full research report on Moving iMage Technologies here >>>)
Other noteworthy reports we are featuring today include Automatic Data Processing, Inc. (ADP), Arista Networks, Inc. (ANET) and The PNC Financial Services Group, Inc. (PNC).
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
Home Depot's (HD) Interconnected Strategy to Boost Sales
Vertex (VRTX) Cystic Fibrosis Sales Up; New Drugs On the Way
Featured Reports
Transformation Initiatives Aid ADP, Escalating Expenses Hurt
The Zacks analyst is positive about ADP's transformation initiatives that are helping the company to innovate, improve operations and expand margins. Rising expenses remain a concern.
Strategic Initiatives Aid PNC Financial (PNC) Amid Cost Woes
Per the Zacks analyst, inorganic and strategic growth initiatives with support from a strong balance sheet are likely to aid PNC Financial. However, higher costs are a threat to its profitability.
Demand From Large Enterprise Customers Benefits Fortinet (FTNT)
Per the Zacks Analyst, Fortinet benefits from increasing demand from large enterprise customers as well as growth in the company's security subscriptions.
Everest Group (EG) Banks on Solid Premiums Amid High Costs
Per the Zacks analyst, Everest Group is set to grow on solid Insurance segment on the back of new business opportunities, which drives premium growth. However, high costs remain a concern.
Permian Basin Presence, JV Aid Plains All American (PAA)
Per the Zacks analyst, Plains All American benefits from rise in production from the Permian region, with a revival in demand for midstream services. Its joint ventures are expected to drive earnings.
Transocean (RIG) Likely to Benefit from Backlog of $8.64B
The Zacks analyst believes that RIG's backlog of $8.64 billion provides earnings and cash flow visibility, but is concerned over high cash costs on day rates.
Robust Strategies Aid Prestige Consumer (PBH) Amid Cost Woes
Per Zacks analyst, Prestige Consumer is focused on core strategies, that are designed to enhance growth and long-term profitability across its core brands. But, rising costs continue to pose concerns.
New Upgrades
Arista (ANET) Rides on Portfolio Depth, Solid Demand Trends
Per the Zacks analyst, Arista is likely to benefit from solid demand trends driven by innovative product launches and steady customer additions backed by its best-in-class portfolio strength.
Sprouts Farmers' (SFM) Omnichannel Offering to Propel Sales
Per the Zacks analyst, Sprouts Farmers' ability to deliver a seamless omnichannel experience enhances customer loyalty. E-commerce sales rose 30% in the second quarter, representing 14% of net sales.
PRA Group (PRAA) Banks on Acquisitions & Cash Collections
Per the Zacks analyst, acquisitions and collaborations are enhancing PRA Group's capabilities and portfolio strength. Its cash collections will continue to grow on modernized collection efforts.
New Downgrades
Weak Health & Science Technologies Segment Hurt IDEX (IEX)
Per the Zacks analyst, IDEX is experiencing softness in the Health & Science Technologies segment due to lower demand in the life sciences, analytical instrumentation and semiconductor markets.
Telefonica (TEF) Rides on Customer Growth Amid Competition
Per the Zacks analyst, Telefonica's performance is driven by an increasing customer base, notably in fibre accesses and mobile contract lines. Stiff competition across markets is a concern.
Weak Demand Hurts Microchip's (MCHP) Top-Line Prospects
Per the Zacks analyst, Microchip is suffering weakening demand and challenging macroeconomic environment. Persistent inflation and high-interest rates hurt prospects.
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The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Moving iMage Technologies, Inc. (MITQ): Free Stock Analysis Report
