Top Stock Reports for Walmart, NVIDIA & AstraZeneca

Thursday, March 19, 2020

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 Walmart (WMT), NVIDIA (NVDA) and AstraZeneca (AZN). 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 >>>

Walmart’s shares have outperformed the Zacks Supermarkets industry over the past six months (+6.9% vs. +5.4%). The Zacks analyst believes that the company’s e-commerce sales surged on robust online grocery performance.

The company’s focus on strengthening e-commerce and store operations ha helped it retain its sturdy comps trend in fourth-quarter fiscal 2019, wherein U.S. comps rose for the 22nd straight time. Further, e-commerce sales surged on robust online grocery performance. Management expects e-commerce sales to rise nearly 30% in fiscal 2021, wherein International sales are likely to grow 4%.

However, Walmart’s earnings broke its positive surprise trend and fell year over year in the quarter due to higher cost of sales and increased operating, selling, general and administrative expenses. Additionally, disruption in Chile and a legal matter affected the bottom line. Further, the gross margin remained soft due to pricing and growing e-commerce mix.

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

Shares of NVIDIA have gained 19% over the past year against the Zacks General Semiconductor industry’s fall of -3.8%. The Zacks analyst believes that NVIDIA is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues.

Moreover, an increase in Hyperscale demand remains a tailwind for the Data Center business. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, strength across desktop workstation products is aiding Professional Visualization revenues.

However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern. Also, lower demand for notebook workstations might be a near-term hindrance.

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

AstraZeneca’s shares have lost -22.4% over the past three months against the Zacks Large Cap Pharmaceuticals industry’s fall of -15.8%. The Zacks analyst believes that AstraZeneca’s core products like Nexium, Crestor and Seroquel are facing generic competition, which is hurting sales.

Its diabetes franchise also faces stiff competition while pricing pressure is hurting sales in the respiratory unit. Also, the coronavirus outbreak may hurt its profits in 2020. Nonetheless, AstraZeneca’s newer drugs, mainly cancer medicines Lynparza, Tagrisso and Imfinzi, should keep driving revenues in 2020.

Its pipeline is strong with abundance of pipeline catalysts lined up for 2020. Several launches are underway across each of the therapeutic areas, Oncology, CV metabolism and Respiratory. Cost-cutting efforts should drive earnings.

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

Other noteworthy reports we are featuring today include Goldman Sachs (GS), Advanced Micro Devices (AMD) and Global Payments (GPN).

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Mark Vickery
Senior Editor

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

Walmart's (WMT) Superb U.S. Comps Trend to Fuel Top-Line

Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)

Cancer Drugs to Drive AstraZeneca's (AZN) Sales in 2020

Featured Reports

Business diversification Aids Goldman (GS), Legal Woes Linger

Per Zacks analyst, business diversification is a favorable factor for Goldman. Further, efforts towards expense management are expected to aid bottom-line expansion.

AMD Banks on Strength in Product Portfolio Amid Competition

Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.

Acquisitions Aid Revenue Growth at Global Payments (GPN)

Per the Zacks analyst, numerous acquisitions, alliances, partnerships and joint ventures made by the company are aiding its revenue growth.

Micron (MU) Banks on Rebound in Demand for DRAM Solutions

Per the Zacks analyst, Micron is benefiting from the revival in DRAM demand on the back of a progress in customer inventory adjustments.

General Mills (GIS) Likely to Gain From Solid Pet Segment

Per the Zacks analyst, General Mills is likely to gain from its Pet segment, which was the only unit to see sales growth in the third quarter.

Health Care Products Aid Fresenius (FMS), Competition Rife

Per the Zacks analyst, strong prospects in Health Care Products unit is likely to provide Fresenius a competitive edge.

Favorable Demographics Support Mid-America Apartment (MAA)

Per the Zacks Analyst, favorable demographic trend and job growth are likely to spur primary renter demand in Mid-America Apartment's markets.

New Upgrades

Phillips 66 (PSX) Banks on Midstream & Chemicals Operations

Phillips 66 is well positioned to capitalize on the growing demand for midstream assets in the United States. The Zacks analyst is also bullish on the firm's chemicals operations.

Systematic Investments to Aid American States Water (AWR)

Per the Zacks analyst, systematic investments to strengthen aging infrastructure, expanding customer base will drive performance of American States Water Company.

Bombardier-Asset Acquisition to Aid Spirit AeroSystems (SPR)

Per the Zacks analyst, Spirit AeroSystems' pending acquisition of select assets from Bombardier aerostructures and aftermarket services businesses will boost its position in the aerospace market.

New Downgrades

Rising Lease & Well Operating Costs Hurt EOG Resources (EOG)

The Zacks analyst is concerned as rising lease & well operating costs along with increasing gathering & processing expenses have been affecting EOG Resources' profit levels.

Coronavirus Outbreak Continues to Hurt Royal Caribbean (RCL)

Per the zacks analyst, coronavirus outbreak is likely to hurt the company's top and bottom line in the coming quarters.

Termite Damage Claims Cost Weighs on ServiceMaster (SERV)

The Zacks Analyst is worried about ServiceMaster's increasing termite damage claims cost, which is likely to keep its bottom line under pressure.

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Walmart Inc. (WMT) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
 
Global Payments Inc. (GPN) : Free Stock Analysis Report
 
AstraZeneca PLC (AZN) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
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