Friday, November 10, 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), Chevron Corporation (CVX) and AbbVie Inc. (ABBV). 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 literally been on fire, outperforming the chips space (up +228% vs. +124.9% for the Zacks Semiconductor industry) and the broader market (+228% vs. +14.3% for the S&P 500 index) in the year-to-date period. The company is gaining from strong growth of artificial intelligence (AI), high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.

The datacenter end-market business is likely to benefit from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. A surge in Hyperscale demand and a solid uptake of AI-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 likely to hurt by weakening demand for chips used in the professional visualization end market.

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

Shares of Chevron have underperformed the Zacks Oil and Gas - Integrated - International industry over the past six months (-7.4% vs. -0.6%). The company is grappled with the 2020 commodity price crash, leading to substantial spending cuts. Concerns include high sensitivity to oil prices and a 10-year reserve replacement ratio of 100%, indicating challenges in replenishing produced energy.

Considering all these factors, investors are advised to wait for a better entry point. Despite this, Chevron is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana.

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

Shares of AbbVie have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-3.8% vs. +3.8%). The company is facing concerns about long-term sales growth since Humira generics have entered the U.S. market. Increasing competition from newer therapies is hurting Imbruvica’s sales. Slowing consumer demand due to economic pressure is hurting the aesthetics franchise’s sales.

Nonetheless, though revenues are expected to decline in 2023, AbbVie expects to return to robust sales growth in 2025. Estimate movements have been mixed ahead of Q3 results. ABBV reported impressive earnings surprise in recent quarters.

Also, AbbVie has several new drugs in its portfolio that have the potential to drive the top line to make up for lost Humira revenues. Skyrizi and Rinvoq have established outstanding launch trajectories bolstered by the approval in new indications. It has several early/mid-stage candidates that have blockbuster potential.

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

Other noteworthy reports we are featuring today include Alibaba Group Holding Limited (BABA), Comcast Corporation (CMCSA) and Morgan Stanley (MS).

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>>>