Today's Must Read
Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)
Cisco (CSCO) Rides on Security Products & Strategic Deals
Tuesday, December 29, 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 Johnson & Johnson (JNJ), NVIDIA Corporation (NVDA) and Cisco Systems, Inc. (CSCO). 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 >>>
Johnson & Johnson shares have outperformed the Zacks Large Cap Pharmaceuticals industry in the year-to-date period (+5.0% vs. +1.7%). The Zacks analyst believes that J&J’s diversification makes it relatively resilient amid macroeconomic turmoil. The Pharma unit is performing at above-market levels, supported by successful label expansion of blockbuster drugs, Imbruvica, Darzalex and Stelara. J&J is also making rapid progress with its pipeline and line extensions.
However, headwinds like generic competition and pricing pressure continue. J&J faces numerous lawsuits, which allege personal injuries to patients caused by the use of its products. These lawsuits have resulted in uncertainties.
Shares of NVIDIA have increased +122.1% over the past year against the Zacks Semiconductor - General industry’s gain of +32.1%. The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive the user base.
Further, solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Daimler-owned Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.
Shares of Cisco have fallen -6.3% in the year-to-date period against the Zacks Computer – Networking industry’s decline of -5.7%. The Zacks analyst believes that weakness in the commercial, service provider and enterprise end markets and coronavirus crisis-led supply chain constraints, is likely to weigh on the company’s revenues. Further, weak demand for servers, and sluggish enterprise IT spending, remain added concerns.
However, Cisco is certainly benefitting from robust adoption of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic. Ongoing momentum in Webex video conferencing and business productivity offerings on account of COVID-19 induced work-from-home demand environment remains noteworthy.
Other noteworthy reports we are featuring today include AbbVie Inc. (ABBV), Sony Corp. (SNE) and FreeportMcMoRan Inc. (FCX).
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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>>>