Tuesday, December 26, 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 Corp. (NVDA), Oracle Corp. (ORCL) and The TJX Companies, Inc. (TJX). 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’s shares have outperformed the Zacks Semiconductor - General industry over the past year (+246.0% vs. +151.2%). The company’s Compute & Networking revenues are gaining from the strong growth of artificial intelligence (AI), high-performance computing and accelerated computing.

The data center end-market business is likely to benefit 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 a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in 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 Oracle have gained +33.1% over the past year against the Zacks Computer - Software industry’s gain of +58.5%. The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings.

Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks.

Partnerships with VMWare and Microsoft are helping Oracle win new clientele. ORCL is launching a generative AI cloud service for enterprise customers. Its share buybacks and dividend policy are noteworthy.

However, higher spending on product enhancements, especially toward the cloud platform, amid increasing competition in the cloud domain is likely to limit margin expansion.

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

Shares of The TJX Companies have gained +18.0% over the past year against the Zacks Retail - Discount Stores industry’s gain of +19.2%. The company’s off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well.

The TJX Companies is benefiting from its solid store and e-commerce growth efforts. The Marmaxx segment is doing well, where comparable store sales grew in the fiscal third quarter, backed by improved customer traffic. Strength at the company’s HomeGoods (U.S.) division bodes well. Also, it is boosting growth through effective marketing initiatives.

However, it has been grappling with high wage and supply-chain costs. It expects these costs to be deterrents in fiscal 2024. A high debt level poses a concern for the company. Currency fluctuations might act as a deterrent.

(You can read the full research report on The TJX Companies here >>>)

Other noteworthy reports we are featuring today include Chubb Ltd. (CB), TC Energy Corp. (TRP) and Xylem Inc. (XYL).

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>>>