Today's Must Read
Accenture (ACN) Rides on Acquisitions Amid Pricing Pressure
Cost Savings Strategy Aids Goldman (GS), Capital Level Solid
Monday, March 29, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including NVIDIA (NVDA), Accenture (ACN), and The Goldman Sachs Group (GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
NVIDIA shares have lagged lately, but they are otherwise standout performers over the past year (+96.9% vs. +60.3% for the industry) as the company capitalized on coronavirus-induced work-from-home and learn-at-home trends.
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 user base.
Further, solid uptake of artificial intelligence-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.
Accenture shares have gained +22.3% over the last six months against the Zacks Consulting industry’s gain of +24.7%. The Zacks analyst believes that the company has been steadily gaining traction in its outsourcing and consulting businesses.
It has been strategically enhancing its cloud and digital marketing suite through acquisitions and partnerships. However, pricing pressure due to significant competition from strong companies like Genpact, Cognizant and Infosys, remains a concern.
Global presence exposes it to foreign currency exchange rate fluctuations. Buyout-related integration risks continue to remain a concern.
Shares of Goldman Sachs have gained +27.7% in the past three months against the Zacks Financial - Investment Bank industry’s gain of +23.6%, with a combination of robust capital markets and investment banking opportunities helping improve the Wall Street firm's fortunes.
Efforts to expand consumer lending business have also been supporting the company’s growth. Prudent cost-management initiatives might continue supporting bottom-line growth. Moreover, with strong liquidity position, Goldman remains less exposed to credit risk in case of any economic downturn.
However, legal issues, high dependence on overseas revenues, and volatile client-activity might impede top-line growth. Moreover, steady capital deployment activities remain a tailwind.
Other noteworthy reports we are featuring today include Becton, Dickinson and Company (BDX), Southern Copper (SCCO) and Newmont (NEM).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Director of Research
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>>>