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>>>