Thursday, July 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), HSBC Holdings plc (HSBC) and 3M Co. (MMM). 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 >>>

NVIDIA shares have declined -22.6% over the past year against the Zacks Semiconductor - General industry’s decline of -24.5%. The company’s management expects COVID-19 pandemic to negatively impact near-term revenues.

Moreover, the U.S.-China trade war remains a key concern. However, NVIDIA is benefiting from the 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 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

(You can read the full research report on NVIDIA here >>>)

HSBC shares have outperformed the Zacks Banks - Foreign industry over the past year (+18.6% vs. -9.6%). The company’s strong capital position, initiatives to strengthen digital capabilities, extensive network and improvement in operating efficiency through business restructuring will likely keep aiding growth. Exiting from U.S. and French retail banking operations is expected to help the company focus on Asia.

In sync with this, the acquisition of AXA Singapore insurance assets will expand the company's business in the region. Though initiatives to improve market share in the U.K. and China will continue to support financials, these might lead to a rise in expenses, which will likely hurt HSBC’s bottom line to an extent in the near term. Relatively lower interest rates across the globe (despite rate hike expectations) will likely continue to hamper revenues.

(You can read the full research report on HSBC here >>>)

3M Co. shares have declined -25.5% year to date versus the Zacks Diversified Operations industry’s decline of -22.1%. The Zacks analyst believes that headwinds related to raw material and logistics cost inflation are hurting 3M’s bottom line.

Supply chain woes are affecting production volumes in the electronics and automotive OEM markets. Due to these headwinds, shares of the company have declined 26.8% in the past six months. 3M’s high debt levels are also a concern.

However, 3M seems well-positioned to benefit from its portfolio reshaping actions. The company’s acquisition of the technology assets of LeanTec strengthen its ability to deliver a more connected, digital bodyshop solution via its RepairStack Performance Solutions. Strength across its several end-markets, such as, manufacturing, electronic materials, healthcare IT, home improvement, wound care and automotive/mobility are expected to support the top line. 3M’s efforts to reward its shareholders is encouraging.

(You can read the full research report on 3M Company here >>>)

Other noteworthy reports we are featuring today include BP p.l.c. (BP), Petróleo Brasileiro S.A. - Petrobras (PBR) and The PNC Financial Services Group, Inc. (PNC).

Mark Vickery
Senior Editor

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>>>