Today's Must Read
Focus on Pro Customers to Aid Home Depot's (HD) Top Line
COVID Jab and Pill to Drive Pfizer's (PFE) 2022 Revenues
Monday, May 16, 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 Corporation (NVDA), The Home Depot, Inc. (HD), and Pfizer Inc. (PFE). 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 been hit hard during the ongoing market downdraft, as sentiment has shifted on high-multiple and fast-growth operators in a rising interest rate environment. The stock is down -40.4% in the year-to-date period vs. -23j.9% decline for the Zacks semiconductor industry and -15.8% pullback for the broader S&P 500 index. The Zacks analyst believes that the company should continue to benefit 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. NVIDIA's quarterly report next week (May 25th) is expected to spotlight these areas for strength.
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 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.
The Home Depot shares have lost -28.1% of their value in the year-to-date period against Lowe's -24.7% decline and -15.8% decline in the S&P 500 index. Driving this weakness is the perception of rougher days ahead for the housing sector in a rising mortgage rate environment that is expected to weigh on home affordability measures. While these issues are real, the Zacks analyst is pointing to continued strength in both Pro and DIY categories as well as digital momentum, along with strong demand for home-improvement projects, robust housing market trends, and ongoing investments.
Its interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters, aiding digital sales. The Zacks analyst expects these favorable trends to to be on display in the company's quartelry report on Tuesday, May 17th.
(You can read the full research report on Home Depot here >>>)
Shares of Pfizer have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+29.2% vs. +19.6%). The company boasts a diversified portfolio of innovative drugs and vaccines including Ibrance and Prevnar. The Zacks analyst believes that no company is as strongly placed in the COVID vaccines/treatment market as Pfizer right now. Its COVID-19 vaccine has become a key contributor to the top line. The vaccine together with Pfizer’s promising oral antiviral pill for COVID-19, Paxlovid is expected to generate a combined $54 billion in sales in 2022.
Pfizer boasts a sustainable pipeline with multiple late-stage programs that can drive growth. However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth drivers beyond its COVID-related products due to competitive pressure.
(You can read the full research report on Pfizer here >>>)
Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), Salesforce, Inc. (CRM), and TotalEnergies SE (TTE).
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>>>