Wednesday, July 5, 2023

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 Amazon.com, Inc. (AMZN), NVIDIA Corporation (NVDA) and Tesla, Inc. (TSLA). 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 >>>

Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry (+55.1% vs. +31.7%) as well as the broader market (+55.1% vs. +17.1% for the S&P 500 index) this year. The company is gaining on solid Prime momentum owing to ultrafast delivery services and strong content portfolio. Strengthening relationship with third-party sellers is a positive. Additionally, strong adoption rate of AWS is aiding the company’s cloud dominance.

Expanding AWS services portfolio is continuously helping Amazon in gaining further momentum among the customers. Robust Alexa skills and expanding smart home products portfolio are positives. The company’s strong global presence and solid momentum among the small and medium businesses remain tailwinds.

However, inflationary pressure, supply-chain constraints, geopolitical tensions and foreign currency headwinds remain concerns. Also, growing transportation and fulfillment center costs remain concerns.

(You can read the full research report on Amazon.com here >>>)

Shares of NVIDIA have handily outperformed the Zacks Semiconductor industry (+190.2% vs. +74.6%) as well as the Zacks Tech sector (+190.2% vs. +37.2%) in the year-to-date period. Driving Nvidia's outperformance is strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.

A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space.

However, NVDA’s near-term prospects look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.

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

Tesla shares have outperformed the Zacks Automotive - Domestic over the past year (+20.7% vs. +13.3%). The company’s record second-quarter 2023 deliveries signal its growing dominance in the electric vehicle (EV) market as it continues to expand its production and sales globally. The Zacks analyst expects deliveries to see an annualized growth of around 37% in 2023.

Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. We anticipate automotive revenues to rise 19% this year.

Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. The wider adoption of Tesla's NACS connector by other automakers and EV charging companies is also boosting the stock. Amid such tailwinds, we are bullish on Tesla.

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

Other noteworthy reports we are featuring today include Meta Platforms, Inc. (META), Thermo Fisher Scientific Inc. (TMO) and Canadian National Railway Company (CNI).

Director of Research

Sheraz Mian

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>>>