Yahoo Finance Top Stock Reports for Apple, NVIDIA & Bank of America
Friday, August 18, 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 Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). 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 >>>
Apple shares have struggled lately, with the stock losing losing -11.6% of its value since the start of August, lagging the Zacks Tech sector's -7.3% decline and the S&P 500 index's -4.6% pullback. This recent weakness notwithstanding, the stock has been a standout performer this year, handily outperforming the Tech sector as well as the broader market.
The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services’ year-over-year growth to accelerate in fiscal fourth-quarter as compared with the June quarter.
However, revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt top-line.
(You can read the full research report on Apple here >>>)
As is the case with Apple, NVIDIA shares have struggled lately as well, with the stock lagging the Tech sector as well as the S&P 500 index this month (-9.4% vs. -7.3% for the Tech sector & -4.6% for the index). That said, Nvidia's performance this year is one for the record books, with the stock up +192.9% this year vs. +32.7% for the Tech sector and +15.2% for the market.
Nvidia has literally been in a league of its own since its last quarterly release on May 24th when it raised guidance by a magnitude that we have never seen from another company. With the company on deck to report results on Wednesday, August 23rd, it is under the spotlight as to whether the preceding quarter's numbers were a one-off or the start of a sustained period of outperformance.
The company is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
A surge in Hyperscale demand and a solid uptake of artificial intelligence-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 look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past six months (-10.9% vs. -15.9%). The tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
Nevertheless, Higher interest rates and decent loan demand will likely keep aiding the company’s net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), NIKE, Inc. (NKE) 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>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Rate Hikes Aid Bank of America (BAC) Amid Market Volatility
Featured Reports
Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.
Improved Traffic & Digital Trends Aid NIKE (NKE) Direct
Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Gains in Digital business are also aiding growth at NIKE Direct
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, the fast adoption of e-commerce and high inventory levels will drive demand for Prologis' facilities in key markets. Rising supply and high interest rates are worrisome.
Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.
Sun Life Financial (SLF) Set to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set for grow on the strength of its Asia business that are expected to provide higher return and growth as well as expanding global asset management business.
Yum China (YUMC) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Yum China's focus on digital enhancements, logistics center openings and supply-chain security bode well. However, wage inflation is a concern.
Paramount Global (PARA) Banks on Paramount+, Streaming Portfolio
Per the Zacks analyst, Paramount is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV
New Upgrades
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea face disruption. The company's progress with the oncology portfolio & other candidates is also impressive
Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst thinks Diamondback Energy's extremely low breakeven oil prices, which require the commodity to trade for just $50 per barrel in order for the business to turn a profit.
Air Transport Services (ATSG) Soars on Freighter Demand
Air Transport Services is benefiting from an upbeat demand for mid-size air freighters. The Zacks analyst believes that the demand uptick is attributable to e-commerce growth.
New Downgrades
High Debt & Expenses Ail Canadian Pacific Kansas City (CP)
The Zacks analyst is worried about escalating operating expenses. Also, Canadian Pacific Kansas City's liquidity position is concerning.
Lower Construction Activities to Hurt Westlake (WLK)
Per the Zacks analyst, softer construction and industrial activities will continue to put pressure on Westlake's PVC resin, caustic soda and epoxy sales.
Lower COVID Sales Hurt Thermo Fisher (TMO), Forex Woes Ail
Per Zacks analyst, Thermo Fisher is experiencing a continuous decline in COVID testing-related demand and is expected to continue at much lower levels in 2023. Foreign exchange woes remain a concern.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
