Yahoo Finance Top Stock Reports for NVIDIA, Tesla & Linde
Thursday, June 6, 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), Tesla, Inc. (TSLA) and Linde plc (LIN), as well as two micro-cap stocks Servotronics, Inc. (SVT) and The Cato Corporation (CATO). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 outperformed the Zacks Semiconductor - General industry over the past year (+223.5% vs. +166.9%), making the company overtake Apple to become the second largest company behind Microsoft in terms of market capitalization. The company is benefiting from the strong growth of artificial intelligence (AI), high-performance and accelerated computing.
The data center end-market business is benefiting 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 higher sell-ins to partners across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.
Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the 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 Tesla have declined -22.7% over the past year against the Zacks Automotive - Domestic industry’s decline of -23.9%. The company is witnessing shrinking automotive margins and a slowdown in deliveries amid a cooling electric vehicle (EV) market.
Tesla expects its vehicle volume growth rate for 2024 to be noticeably lower than 2023. With competition intensifying in the EV space, Tesla’s focus on autonomous driving and artificial intelligence (AI) is expected to be a game changer. It aims to launch affordable vehicles, transition into an AI company and is banking on its robotaxi venture.
The successful introduction of its Full Self Driving (FSD) software in China amid stiff competition marks a significant win. Additionally, TSLA’s Energy Generation and Storage business is thriving. While near-term challenges persist, long-term prospects appear promising, driven by its big bet on driverless software and AI.
(You can read the full research report on Tesla here >>>)
Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the past year (+21.2% vs. -9.0%). The company being a global leader in industrial gas manufacturing, supplies a wide range of essential gases to industries such as energy, steel, healthcare, manufacturing and electronics.
The firm secures long-term contracts with key on-site clients featuring minimum purchase agreements, helping to stabilize earnings during economic downturns. With a track record of raising dividends for 31 consecutive years, Linde remains committed to rewarding shareholders, supported by its robust business model.
However, increasing competition for new projects poses challenges to the company's return on investment. Additionally, the volatility of energy prices, particularly for natural gas and diesel fuel, presents a significant concern for profitability. Increasing regulatory burden may negatively impact the industrial gas producer’s overall financial health.
(You can read the full research report on Linde here >>>)
Shares of Servotronics have gained +7.4% over the past six months against the Zacks Diversified Operations industry’s gain of +9.9%. This microcap company with market capitalization of $30 million reported strong first-quarter 2024 results, with revenues rising 15.3% to $10.4 million and gross profit soaring 75.6% to $1.7 million year over year.
This growth was driven by higher volumes, a favorable product mix and a 29.3% increase in foreign sales. The company’s focus on cost management and operational efficiencies improved profit margins and reduced operating losses. The divestiture of the unprofitable CPG segment allows it to focus on core servo control components, enhancing profitability.
Also, the company’s expansion into the repair, overhaul, energy and industrial markets is expected to drive revenue growth. Commitment to zero-defect quality standards ensures competitiveness in the aerospace and defense sectors. With a strong foundation, Servotronics is well-positioned for continued performance improvements.
(You can read the full research report on Servotronics here >>>)
Cato’s have underperformed the Zacks Retail - Apparel and Shoes industry over the past year (-22.8% vs. -52.3%). This microcap company with market capitalization of $125.25 million is witnessing declining same-store sales, store closures, inflationary pressures, supply chain disruptions, and low e-commerce sales, which can dampen growth and profitability.
Nevertheless, Cato have witnessed robust earnings, effective cost management, and a strong financial foundation first-quarter 2024. Net income surged 148% to $11 million, driven by operational efficiency and cost control, showcasing resilience. Cost of goods sold and SG&A expenses decreased, boosting margins.
With $477.2 million in total assets and $39.1 million in cash, Cato's financial stability supports growth. Consistent dividends ($0.17 per share) and share repurchases (431,415 shares) underscore shareholder value commitment. Strategic e-commerce expansion and women's apparel focus align with market trends, positioning Cato for sustained revenue growth.
(You can read the full research report on Cato here >>>)
Other noteworthy reports we are featuring today include Medtronic plc (MDT), CrowdStrike Holdings, Inc. (CRWD) and Prudential Financial, Inc. (PRU).
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
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Big Bets on Self Driving Tech & AI to Buoy Tesla (TSLA)
Linde's (LIN) Long-Term Contracts With Minimum Volume Aid
Featured Reports
CrowdStrike (CRWD) Rides on Product Strength, Acquisitions
Per the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, strategic buyouts like Bionic and Reposify are positive.
Prudential (PRU) Gains From Solid Asset-based Businesses
Per the Zacks analyst, Prudential is set to grow from solid asset-based businesses, international operations and deeper reach in pension risk transfer market. Yet, rising expenses weigh on margins.
IQVIA Benefits From IT Infrastructure Amid High Competition
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Rising competition from other players is an overhang.
Western Digital (WDC) Gains from Improvement Across Segments
Per the Zacks analyst, Western Digital is gaining from demand for its nearline HDD offerings. Higher demand for AI-driven solutions across end markets will boost demand for HDD and Flash offerings.
Investments, Customer Growth Aid Essential Utilities (WTRG)
Per the Zacks analyst, Essential Utilities' (WTRG) $7.2 billion investment to fortify it water and natural gas infrastructure and demand from expanding customer base are going to boost its performance
FDA Nod to CRISPR's (CRSP) Casgevy Gene Therapy Encouraging
Per the Zacks Analyst, the FDA and EMA approvals to CRISPR Therapeutics' Casgevy is a major scientific breakthrough as it marks the first regulatory authorization for a CRISPR-based gene therapy.
Pricing Actions Aid National Steel (SID) Amid Higher Costs
Per the Zacks Analyst, National Steel's results will benefit from its pricing actions and focus on investment. However, elevated raw material costs will continue to hurt margins.
New Upgrades
Medtronic (MDT) Gains in Market Share, Global Growth Robust
The Zacks analyst is impressed that despite macro-economic issues, Medtronic is reporting market share gains across core businesses. Non-U.S. developed and emerging markets expansions remain strong.
SM Energy's (SM) Premium Permian & Eagle Ford Assets Aid
Per the Zacks analyst, SM Energy's increased emphasis on crude oil in the Permian Basin and Eagle Ford is set to amplify its operations and production.
Strength in Thrombectomy, Focus on R&D Aid Surmodics (SRDX)
The Zacks analyst is upbeat about Surmodics' solid efforts to improve its research and development (R&D) stature. Solid potential in its thrombectomy products is an added plus.
New Downgrades
Kohl's (KSS) Comparable Sales Hurt by Soft Consumer Spending
Per the Zacks analyst, Kohl's is battling a difficult operating landscape, with inflation weighing on consumers spending pattern and demand. Management expects comparable sales to decline in 2024.
Rising Costs, Stiff Rivalry Ail Evercore's (EVR) Growth
Per the Zacks analyst, high costs will impede Evercore's bottom-line growth while volatility of institutional AUM will hurt revenues. Also, stiff rivalry creates pricing and competitive pressures.
Declining Comps and High Costs Hurt Cracker Barrel (CBRL)
Per the Zacks analyst, Cracker Barrel's prospects are hurting due to declining guest traffic resulting in reduced comps. Also, increased labor inflation and other costs and expenses are adding to it.
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Medtronic PLC (MDT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
Cato Corporation (The) (CATO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Servotronics, Inc. (SVT): Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
