Thursday, April 18, 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 Corporation (NVDA), Alphabet Inc. (GOOGL) and Johnson & Johnson (JNJ). 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 has literally emerged as the market's collective play on the outlook for artificial intelligence; the stock is up +72.7% this year vs. +7.8% for the Zacks Tech sector and +5.6% for the S&P 500 index. The Zacks analyst believes that strong growth of generative artificial intelligence (AI) and the demand for GPU’s have resulted in the company’s stocks skyrocketing. Collaborations with Mercedes-Benz and Audi are likely to advance its presence in autonomous vehicles and other automotive electronics space, while it is also leaving giant imprints on the Gaming and ProViz end markets.

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 >>>)

Alphabet shares have modestly underperformed the Zacks Internet - Services industry over the last six months (+12.9% vs. +14.1%). The Zacks analyst believes that Alphabet’s sluggish network advertisement business have been casting a cloud over its prospects. Also, increasing litigation issues and expenses remain concerns.

Yet, expanding data centers, strong focus on bolstering generative AI capabilities and deepening focus on the wearables category remain major tailwinds. The company’s efforts to gain foothold in the healthcare industry as well as autonomous driving space also gives cause for optimism.

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

Shares of Johnson & Johnson have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-10.9% vs. +15.6%). Per the Zacks analyst, headwinds like generic competition and pricing pressure continue to ail. The company faces the upcoming patent expiration of Stelara. Though it has taken meaningful steps to resolve its talc and opioid litigation, uncertainty regarding the talc litigations persists.

However, its Innovative Medicine Unit is outdoing the markets currently, and the MedTech unit is is showing improving trends, driven by a recovery in surgical procedures and contribution from new products. J&J is making rapid progress with its pipeline and line extensions.

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

Other noteworthy reports we are featuring today include Broadridge Financial Solutions, Inc. (BR), Alexandria Real Estate Equities, Inc. (ARE) and Textron Inc. (TXT).

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>>>