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Research Daily

Wednesday, February 28, 2024

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), Visa Inc. (V) and Amgen Inc. (AMGN). 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’s shares have outperformed the Zacks Semiconductor - General industry over the past year (+239.1% vs. +164.8%). The company’s Computer & Networking revenues are gaining from the strong growth of artificial intelligence (AI), high-performance computing and accelerated computing.

The data center end-market business is likely to benefit from the growing demand for generative AI and large language models using graphic processing units (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.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space. However, its near-term prospects are likely to be hurt by softening IT spending amid macroeconomic headwinds.

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

Shares of Visa have outperformed the Zacks Financial Transaction Services industry over the past year (+29.8% vs. +25.2%). The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving its revenues. It expects net revenues to increase in the low double digits for fiscal 2024.

Visa, fueled by increased payments and sustained investments in technology, is witnessing bottom-line growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

The company beat earnings estimates by 3.4% in the fiscal first quarter of 2024. However, elevated operating expenses pose margin challenges. Additionally, it is witnessing a declining cash volume from the Asia-Pacific and CEMEA regions. As such, the stock warrants a cautious stance.

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

Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+24.3% vs. -4.5%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters.

The addition of Horizon Therapeutics has given Amgen a significant rare disease business. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months.

However, increased pricing headwinds and competitive pressure are hurting sales of many products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds. Estimates have gone up ahead of Q4 earnings release. Amgen has positive record of earnings surprises in recent quarters.

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

Other noteworthy reports we are featuring today include Chubb Ltd. (CB), Emerson Electric Co. (EMR) and PACCAR Inc (PCAR).

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>>>

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