Top Stock Reports for Alibaba, NVIDIA & Bristol Myers Squibb

Tuesday, July 07, 2020

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 Alibaba Group (BABA), NVIDIA (NVDA) and Bristol Myers Squibb (BMY). 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 >>>

Alibaba shares have modestly lagged the Zacks Internet Commerce industry over the past year (+43.8% vs. +52.7%), but have otherwise been stellar performers. The Zacks analyst believes that Alibaba Group is driven by a steady improvement in core commerce and strong cloud business. The company continues to benefit from strong growth in metrics.

Further, Alibaba’s strengthening cloud business with its expanding customer base continues to drive its performance. The company's New Retail strategy is also gaining momentum. This is aiding growth in Tmall Import, Hema fresh food grocery business and Intime Department Stores.

However, higher costs associated with new initiatives remain a major concern. Also, COVID-19 related economic uncertainties and macro headwinds in China are major concerns. In addition, rising competition from e-commerce players like Amazon poses a risk. 

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

Shares of NVIDIA have gained +67% over the past six months against the Zacks General Semiconductor industry’s rise of +18%. The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work from home and learn-at-home wave.

The company is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. The company expanded NVIDIA GeForce NOW in the last quarter, which is expected to drive user base.

Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, its latest collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern.

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

Bristol Myers Squibb’s shares have gained +4% over the past three months against the Zacks Large Cap Pharmaceuticals industry’s rise of +17.4%. The Zacks analyst believes that Bristol-Myers’ blockbuster immuno-oncology drug, Opdivo, and blood thinner drug, Eliquis, will drive growth for the company.

Eliquis is the leading oral anti-coagulant drug and the company continues to witness growth in both Eliquis brand and the market. The label expansion of Opdivo for first-line NSCLC should boost growth. The addition of sales from Celgene’s drugs (acquired in November 2019) has boosted growth prospects. In particular, the addition of Revlimid has strengthened the oncology portfolio.

However, the company trimmed its revenue forecast with the first-quarter results. Opdivo’s performance was dismal as it faces stiff competition from Keytruda and Tecentriq. Moreover, concerns will rise once Revlimid loses patent protection. Pipeline setbacks too weighed on shares.

(You can read the full research report on Bristol Myers Squibb here >>>)

Other noteworthy reports we are featuring today include Johnson & Johnson (JNJ), PetroChina (PTR) and S&P Global (SPGI).

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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>>>

Today's Must Read

Alibaba (BABA) Drives On Cloud Growth; Investments Hurt

Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)

Revlimid, Eliquis Boost Bristol-Myers (BMY), Opdivo Weakens

Featured Reports

J&J's (JNJ) Pharma Segment Resilient Amid Generic Headwinds

The Zacks analyst says that despite generic headwinds, J&J's Pharma unit is performing above-market levels, helped by new drugs and label expansion of blockbuster drugs, Imbruvica, Darzalex & Stelara.

Upstream Unit Buoys PetroChina (PTR) Amid Gas Import Losses

The Zacks analyst believes oil production growth and lower lifting costs should aid PetroChina's upstream unit outlook.

S&P Global (SPGI) Benefits From Acquisitions Amid High Debt

The Zacks analyst likes S&P Global's acquisition strategy to innovate, increase differentiated content and develop new products.

Dominion (D) Gains from $9.7B Deal Amid Pipeline Cancellation

Per the Zacks analyst Dominion will gain from the sale of its gas transmission & storage business.

Strategic Buyouts Aid Moody's (MCO), High Competition A Woe

Per the Zacks analyst, Moody's (MCO) is likely to benefit from a diversified revenue base and synergies from strategic buyouts. Yet, stiff competition, which is putting pricing pressure, is a concern.

Growth Investments Supports ABB Despite Weak Market Demand

Per the Zacks analyst, ABB's organic growth investments and diligent cost-cutting initiatives will improve its competency. The weak demand environment due to the coronavirus-led issues is concerning.

Cost Control Efforts to Buoy Deere (DE) Amid Weak Demand

Per the Zacks analyst, Deere will gain from cost-reduction initiatives and growing U.S farm income. However the impact of the coronavirus pandemic on its supply chain and demand remains a concern.

New Upgrades

No-Debt Position & Rising Assets Aid T. Rowe Price (TROW)

Per the Zacks analyst, driven by ample liquidity and zero debt, T. Rowe Price remains well poised for growth. Also, increasing assets under management will positively aid top-line performance.

Product Launches and MI Bioresearch Buyout Aid LabCorp (LH)

The Zacks analyst is upbeat about LabCorp's buyout of MI Bioresearch, thus aiding preclinical abilities in cell and gene therapy and oncology testing. COVID-19 test launches to drive segmental growth.

Bed Bath & Beyond (BBBY) Store Unleash & Online Sales Bode Well

Per the Zacks analyst, Bed Bath & Beyond has reopened 600 stores in a phased manner as of Jun 13 after pandemic-related closures. It is witnessing robust digital sales, recording over 85% in April.

New Downgrades

V. F. Corp (VFC) Witnesses Dismal Sales Trends, Fears Soft Q1

Per the Zacks analyst, V. F. Corp's (VFC) fourth-quarter fiscal 2020 sales were hurt by lower coronavirus-related demand and other government restrictions.

Weakness Across Few Business Units Hurts Logitech (LOGI)

Per the Zacks analyst, weak demand in the Mobile Speaker, Audio & Wearables, and Smart Home segments, due to trade disruptions and coronavirus-led shutdowns of retailer stores, is hurting Logitech.

Weak End-Markets, High Costs to Hurt Timken (TKR)

Per the Zacks analyst, ongoing decline in its end markets owing to the coronavirus pandemic as well as higher costs related to its manufacturing footprint initiatives will weigh on Timken's results.

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SP Global Inc. (SPGI) : Free Stock Analysis Report
 
PetroChina Company Limited (PTR) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Johnson Johnson (JNJ) : Free Stock Analysis Report
 
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
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