Today's Must Read
NVIDIA (NVDA) Rides on Solid Adoption of GPUs, Partnerships
Mazor Buy to Aid Medtronic (MDT) Spine Arm, CRHF Grows Firm
Monday, September 24, 2018
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 Boeing (BA), NVIDIA (NVDA) and Medtronic (MDT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Boeing’s shares have surged +46.4% in the past year, outperforming the Zacks Aerospace & Defense sector, which gained +23.4% during the same time period. The Zacks analyst emphasizes that the company is the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries.
Considering the huge global demand for commercial jets, Boeing has been enjoying an enormous flow of orders from all over the world. In this regard, the company’s 20-year market outlook forecasts commercial jetliner demand to increase by 4.1%. Boeing expects single-aisle jets to be the major driver behind this demand growth. However, this aerospace giant continues to face challenges from stiff competition.
For the company’s 747 model, weak demand for large commercial passenger and freighter aircraft accompanied with slower-than-expected growth of global freight traffic continue to create market uncertainties. Entrance of new competitors in the aerospace market may impact the top and bottom line of the company.
Shares of NVIDIA have surged year to date, gaining +36.2% versus the Zacks General Semiconductor industry’s +10.5% increase. The Zacks analyst thinks NVIDIA is benefiting from growth across all its platforms. Notably, growing e-sports & migration to cloud are driving demand for NVIDIA’s GPUs in the gaming & datacenter markets. NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs keep it well positioned.
Higher adoption of NVIDIA’s Volta processors is likely to act as a catalyst in the near term. Moreover, partnership with companies like Arrow, Baidu, Daimler and Bosch is a tailwind. Nonetheless, recent developments like suspension of test drives for all its driverless vehicles and a likely no contribution from cryptocurrency miners makes us slightly cautious about its near-term performance. Additionally, competitive pressure from two CPU vendors, Intel and AMD, which are planning to integrate graphics cores into respective chips, poses concern.
Medtronic’s shares have outperformed the Zacks Medical Products industry over the past three months, gaining +12.8% vs. +9.6%. The Zacks analyst is optimistic about the impending acquisition of Mazor Robotics which is expected to fortify Medtronic's position in spine surgery.
The buyout will combine Medtronic's spine implants, navigation and intra-operative imaging technology with Mazor Robotics’ robotic-assisted surgery (RAS) systems. Meanwhile, Medtronic reported solid top-line growth across all its major business groups in its first-quarter fiscal 2019. This highlighted sustainability across groups and regions, in addition to displaying successful achievement of synergy targets.
Also, gradually stabilizing CRHF market holds promise. The company is also focusing on geographical diversification of its businesses. Yet, escalating costs and expenses continue to weigh on Medtronic’s bottom line. The company’s 2019 guidance remains conservative on apprehension of significant currency woe.
Other noteworthy reports we are featuring today include Alibaba (BABA), Philip Morris (PM) and General Electric (GE).
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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>>>