Wednesday, October 16, 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 NVIDIA Corporation (NVDA), The Procter & Gamble Company (PG) and NextEra Energy, Inc. (NEE). 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 outperformed the Zacks Semiconductor - General industry over the past year (+285.4% vs. +152.9%), a huge outperformance relative the S&P 500 index's +18.1% gain. The Zacks analyst believes that strong growth from artificial intelligence (AI), high-performance computing and accelerated computing is boosting its Compute & Networking revenues. Large language models using GPUs based on NVIDIA Hopper and Ampere architectures, rising demand for generative AI and surge in Hyperscale demand also aid its growth.

Continued momentum in the small and medium businesses and frontline worker offerings have driven the top-line growth.
However, the company’s near-term prospects are likely to be hurt by weakening demand for chips used in the professional visualization end market.

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

Procter & Gamble shares have outperformed the Zacks Consumer Staples – Soap and Cleaning Materials industry over the past year (+13.6% vs. +10.2%). The Zacks analyst believes that the company is benefitting from a growth in its organic sales, driven by robust pricing and a favorable mix, along with strength across segments. Focus on productivity and cost-saving plans to boost margins have also helped.
Rapid adoption of cloud-based solutions, continued deal wins in international markets, and acquisition of Slack have positioned the company as a market leader.

Yet, supply-chain issues, higher SG&A costs, higher transportation costs, geopolitical challenges, currency headwinds and rising inflation have plagued the company. It’s large global presence has also meant that it has been affected by the global macroeconomic goings on.

(You can read the full research report on Procter & Gamble here >>>)

Shares of NextEra Energy have underperformed the Zacks Utility – Electric Power industry over the past year (-26% vs. -8.2%). Per the Zacks analyst, the company’s nature of business has exposed it to complex regulations. Also, risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings.

However, with numerous projects in its backlog and the merger between Gulf Power and FPL have strengthened NextEra’s position in the area. Also, the company has ample liquidity to pay off its debt obligations while growing exponentially through acquisitions.

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

Other noteworthy reports we are featuring today BP p.l.c. (BP), The Goldman Sachs Group, Inc. (GS) and Prologis, Inc. (PLD).

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>>>