Today's Must Read
Coca-Cola's (KO) Digital Investments to Aid the Top Line
Thermo Fisher (TMO) Banks on PPD Buyout Amid Stiff Rivalry
Thursday, April 7, 2022
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 Corp. (NVDA), The Coca-Cola Company (KO), and Thermo Fisher Scientific Inc. (TMO). 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 outperformed the Zacks Semiconductor - General industry over the past year (+70.6% vs. +19.4%). The Zacks analyst believes that the company is benefiting from the coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, 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 artificial intelligence-based smart cockpit infotainment solutions is a boon.
Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. 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 Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past year (+22.4% vs. +15.5%). The company has outpaced the industry in a year on a robust surprise trend, which continued in fourth-quarter 2021. Its top and the bottom line surpassed estimates for the fourth straight quarter.
The Zacks analyst believes that the company is benefited from the strategic transformation and ongoing recovery around the world. Revenues gained from the investments and ongoing recovery in markets, where the pandemic-led disruptions are subsiding. Strength across the majority of the markets, investments in the marketplace, recovery in certain markets as well as the cycling of last year’s pandemic-led impacts aided volumes.
The company provided an upbeat 2022 view. It is poised to gain from innovations and accelerating digital investments. However, pressures from higher supply chain costs, including transportation and input costs remain. Higher marketing spending is also concerning.
Shares of Thermo Fisher have outperformed the Zacks Medical - Instruments industry over the past year (+24.9% vs. +0.4%). The company delivered 8% organic growth in the base business, which is ahead of streets expectations. It witnessed robust year-over-year revenue growth across the Analytical Instruments and the Laboratory Products and Biopharma Services segments.
The Zacks analyst believes that the company’s strategic acquisitions of PPD, Inc. and PeproTech raise investors’ confidence. Thermo Fisher’s accelerated investments to expand bioproduction capacity also buoy optimism. The upbeat guidance for 2022 is indicative that this growth momentum will continue.
However, the year-over-year decline in fourth-quarter earnings raises apprehension. The decline in revenues in the other two segments is also disappointing. Contraction of both margins does not bode well either.
(You can read the full research report on Thermo Fisher here >>>)
Other noteworthy reports we are featuring today include Salesforce, Inc. (CRM), Philip Morris International Inc. (PM), and SAP SE (SAP).
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>>>