Today's Must Read
Tesla (TSLA) Rides High on Model 3/Y SUVs Amid High Costs
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Friday, May 14, 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 Amazon.com (AMZN), Tesla (TSLA), and NextEra Energy (NEE). 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 Amazon have moved sideways to down since September last year, as the market became increasingly skeptical about the company's standing in the post-Covid world. As a result, the stock has lagged the broader market over the past year - up +32.4% vs. +46.5% for the S&P 500 index.
In addition to the company's ecommerce dominance, solid Prime momentum owing to ultrafast delivery services and expanding content portfolio is a key catalyst for growth. However, rising cloud competition from Microsoft and Google poses risk. Further, growing transportation costs are a matter of concern.
Tesla shares have lost ground lately, as sentiment has turned against 'growth' companies in a backdrop of inflation worries, but the stock has otherwise been a stellar performer (up +42.7% over the last six months against the Zacks Domestic Automotive industry’s gain of +29.6%). The Zacks analyst believes that the company has a first-mover advantage in the e-mobility space, with high range vehicles, superior technology and software edge.
Robust Model 3/Y demand, Shanghai Gigafactory prospects, amazing line-up of upcoming products and aggressive expansion efforts bode well for the firm. However, the firm’s high operating costs and massive capex owing to heavy investments related to the construction of gigafactories might strain near-term financials. Waning margins for Model S/X, chip crunch and lofty valuation of the firm are other concerns.
Shares of NextEra have lost -12.2% in the past three months against the Zacks Electric Power industry’s gain of +3.4%. The Zacks analyst believes that NextEra Energy is likely to benefit from its well-chalked out $50-$55 billion capital investment plan to strengthen infrastructure and add more clean assets to the generation portfolio.
Meanwhile, the company has ample liquidity to meet the current debt obligations. However, its nature of business is subject to complex and comprehensive federal, state, as well as other regulations. If the planned nuclear plant outages last longer, the company’s operations and profitability might be hampered.
Other noteworthy reports we are featuring today include Intuitive Surgical (ISRG), CME Group (CME) and Boston Scientific (BSX).
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You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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>>>