Top Analyst Reports for NVIDIA, McDonald's & Intuit
Friday, March 10, 2023
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), McDonald's Corporation (MCD) 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 Semiconductor - General industry over the past year (+6.0% vs. -4.6%). The company is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues. A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds.
Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space. The Zacks analyst expects its Automotive segment’s revenue to grow at a CAGR of 50% through fiscal 2023-2025.
However, NVDA’s near-term prospects look gloomy due to weakening demand for chips used in gaming and data center end markets. While macroeconomic headwinds are impacting gaming and data center chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+15.3% vs. +12.9%). Sales at company-operated restaurants grew 7% year over year. The growth was fueled by strategic menu prices, strong operating performance, marketing campaigns and loyalty programs.
McDonald’s increased focus on menu innovation is commendable. The company is also undertaking every effort to drive growth in international markets. Robust digitalization is likely to help the company to drive long-term growth.
However, the inflationary pressure and persisting COVID-related risks are concerns.
(You can read the full research report on McDonald’s here >>>)
Shares of Intuit have underperformed the Zacks Computer - Software industry over the past year (-7.9% vs. -7.5%). The company is facing macroeconomic and geopolitical headwinds which might significantly hurt small businesses operations, thereby posing risks for Intuit’s top-line growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.
However, Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive.
Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run.
(You can read the full research report on Intuit here >>>)
Other noteworthy reports we are featuring today include AT&T Inc. (T), International Business Machines Corporation (IBM) and Regeneron Pharmaceuticals, Inc. (REGN).
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) Benefits From Increasing Automotive Deal Wins
Loyalty Program Aids McDonald's (MCD), China Comps Woes Stay
Intuit (INTU) Rides on Product Refresh, Higher Subscriptions
Featured Reports
AT&T (T) Rides on Accelerated 5G Rollout, Fiber Densification
Per the Zacks analyst, AT&T is likely to benefit from continued 5G rollout and fiber densification backed by a customer-centric business model, lower churn rate and higher-tier unlimited plans.
IBM Remains Buoyed by Solid Hybrid Cloud & AI Demand Trends
Per the Zacks analyst, IBM is poised to benefit from a strong demand for hybrid cloud and AI technologies driven by a better business mix and improving operating leverage through productivity gains.
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces disruption. The company's progress with the oncology portfolio and other candidates is also impress
Buyouts, Diversification Aid Moody's (MCO), High Costs Ails
Per the Zacks analyst, synergies from buyouts and efforts to diversify revenues will aid Moody's. Mounting costs, tough operating backdrop and pricing pressure due to stiff competition are concerns.
End-Market Demand Aids Emerson (EMR) Amid Supply Chain Woes
Per the Zacks analyst, healthy demand across end-markets bodes well for Emerson's growth. However, supply chain disruptions continue to plague the company.
Global Payments (GPN) Ride High on Buyouts, Solid Cash Flows
Per the Zacks Analyst, buyouts and tie-ups added capabilities to the company's portfolio, which in turn, boosted revenues. Also, strong cash flows drive investments in business.
APA Corporation (APA) to Gain from Suriname Portfolio
The Zacks analyst believes that APA's significant drilling success in Suriname points to significant cash flow potential but is worried about the oil explorer's high debt burden.
New Upgrades
Kroger's (KR) Product Freshness, Digital Efforts to Lift Sales
Per the Zacks analyst, Kroger has been making investments to enhance product freshness and quality as well as expand digital capabilities. Digital sales grew 12% during fourth-quarter fiscal 2022.
Ryanair (RYAAY) Prospects Solid on Upbeat Air Travel Demand
Upbeat air-travel demand is driving Ryanair's top line. The Zacks analyst also finds the company's fleet-modernization initiatives very encouraging.
Henry Schein's (HSIC) Recent Buyout Aid, Medical Sales Up
The Zacks analyst is optimistic about Henry Schein's buyout of Midway Dental, Condor Dental, expanding its reach into underpenetrated areas. Medical equipment and pharmaceutical sales remain strong.
New Downgrades
Rising Capex Needs and High Debt to Ail American Axle (AXL)
High R&D costs and capital outlay to support new programs and electrification are set to dent American Axle's 2023 cash flow. Elevated leverage of 82% also concerns the Zacks analyst.
Zumiez (ZUMZ) Grapples With High Inflation & Other Woes
Per the Zacks analyst, Zumiez's performance has been hurt by the higher inflationary pressures, a promotional landscape, tight labor market, increased operating costs and adverse currency headwinds.
Charles River (CRL) Ailed by NHP Shipment Issue, FX Woes
The Zacks analyst is worried about Charles River on an ongoing investigation related to shipments of NHP received from its Cambodian supplier. Currency headwind continues to mar growth.
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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
