Top Research Reports for NVIDIA, Chevron & AbbVie
Friday, November 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), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). 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 have literally been on fire, outperforming the chips space (up +228% vs. +124.9% for the Zacks Semiconductor industry) and the broader market (+228% vs. +14.3% for the S&P 500 index) in the year-to-date period. The company is gaining from strong growth of artificial intelligence (AI), high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. A surge in Hyperscale demand and a solid uptake of AI-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. However, NVDA’s near-term prospects likely to hurt by weakening demand for chips used in the professional visualization end market.
(You can read the full research report on NVIDIA here >>>)
Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past six months (-7.4% vs. -0.6%). The company is grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy.
Considering all these factors, investors are advised to wait for a better entry point. Despite this, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.
(You can read the full research report on Chevron here >>>)
Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). The company is facing concerns about long-term sales growth since Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales.
Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimate movements have been mixed ahead of Q3 results. ABBV reported impressive earnings surprise in recent quarters.
Also, AbbVie has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Alibaba Group Holding Limited (BABA), Comcast Corporation (CMCSA) and Morgan Stanley (MS).
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
Chevron (CVX) Gets Guyana Assets with Hess Buy
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Featured Reports
Alibaba (BABA) Benefits From Strength in Retail Business
Per the Zacks analyst, growing China and International Commerce businesses are benefiting Alibaba's retail business.
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Per the Zacks Analyst, Comcast benefits from an expanding high speed internet subscriber base as well as strong adoption of Xfinity, Flex and Peacock.
Buyouts Support Morgan Stanley (MS), Capital Markets A Woe
Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Yet, capital markets ambiguity and rising costs are woes.
Cadence (CDNS) to Benefit From Strong Portfolio & Buyouts
Per the Zacks analyst, Cadence's performance is being driven by demand for the company's diversified product portfolio. New products and synergies from buyouts are expected to sustain growth momentum.
Investments, Expanding Customer Base Aid Atmos Energy (ATO)
Per the Zacks analyst, Atmos Energy's investment plan will help to increase the safety and reliability of its natural gas pipelines. Increasing customer count will boost demand for its services.
eSignature Strength Boosts DocuSign (DOCU) Despite Expenses
The Zacks analyst is positive about DocuSign's top line as it is significantly benefiting from continued customer demand for eSignature. However, escalating expenses are a headwind.
Penumbra (PEN) Rides on Solid Vascular Sales, Global Growth
Penumbra's Vascular growth globally is a major positive. Per the Zacks analyst, differentiated technologies of Lightning Flash and Lightning Bolt 7 leading to strong patient outcomes is a key driver.
New Upgrades
Robust Live Events Demand Aid Live Nation Entertainment (LYV)
Per the Zacks analyst, Live Nation Entertainment is benefiting from pent-up demand for live events and robust ticket sales. Also, strong sponsorship and advertising business bodes well.
MGIC Investment (MTG) Set to Grow on New Insurance Written
Per the Zacks analyst, MGIC Investment is set to grow on new insurance written aided by the increase in the mortgage origination market and higher refinance activity.
Veradigm (MDRX) Continues to Gain From Recent Alliances
The Zacks analyst is upbeat about Veradigm's alliances over the past few months despite its operation in a highly competitive space.
New Downgrades
Sanofi (SNY) Profits to Fall in 2024 on Higher R&D, Taxes
The Zacks analyst believes Sanofi's profit outlook for 2024 was disappointing. Sanofi expects adjusted earnings to decline in the low-single-digit range in 2024 due to higher R&D costs and taxes.
Weakness in Energy Systems Segment to Hurt EnerSys (ENS)
Per the Zacks analyst, EnerSys is experiencing weakness across its Energy Systems segment due to decrease in capital spending of the telecommunication and broadband customers.
Tyson Foods (TSN) Remains Troubled by Increasing Costs
Per the Zacks analyst, Tyson Foods is seeing high input costs. The company's fiscal third-quarter gross profit margin contracted 670 basis points on elevated input cost inflation among other reasons.
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Morgan Stanley (MS) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
