Today's Must Read
P&G's (PG) Strong Cash Generation to Attract Investors
Sony (SONY) Rides on Solid PS5 Sales, New Business Avenues
Monday, May 17, 2021
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), The Procter & Gamble Company (PG), and Sony Group Corporation (SONY). 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 gained +62.8% in the past one-year period against the Zacks Semiconductor – General industry’s gain of +34.4%. 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 user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon.
However, management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.
Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry in the last one-year period (+18.8% vs. +4.9%). The Zacks analyst noted that the company’s revenues topped estimates for the fourth straight time in the fiscal third-quarter. Additionally, earnings were aided by robust top-line growth and improved margins.
In fact, productivity savings and higher pricing aided margins, while strength across all segments along with robust pricing and mix boosted sales. Adjusted free cash flow productivity was 106% in the fiscal third quarter. Notably, the company raised its free cash flow productivity target to more than 100% for fiscal 2021.
However, SG&A deleverage partly hurt margins in the reported quarter. Also, currency headwinds and pandemic-related disruptions are likely to affect fiscal 2021 results to some extent.
Shares of Sony have outperformed the Zacks Audio Video Production industry in the last six-month period (+6.7% vs. +6.2%). The Zacks analyst believes that the company is benefiting from a substantial increase in sales in the Game & Network Services and Financial Services segments. Sony expanded its 360 Reality Audio services and product offerings, adding new video streaming capabilities and content creation tools. It also unveiled the Airpeak aircraft as part of its drone project in artificial intelligence robotics.
However, the Pictures unit is witnessing a decline in theatrical revenues resulting from theater closures due to the pandemic. Escalating cost of goods sold is a persistent concern. Fluctuations in foreign currency exchange rates pose a headwind as it has a strong international presence with majority of revenues coming from emerging markets.
Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), Dominion Energy, Inc. (D) and China Petroleum & Chemical Corporation (SNP).
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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>>>