Top Stock Reports for NVIDIA, Microsoft & Broadcom

Tuesday, October 22, 2024The 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), Microsoft Corp. (MSFT) and Broadcom Inc. (AVGO), as well as a micro-cap stocks Comstock Holding Companies, Inc. (CHCI). 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’s shares have outperformed the Zacks Semiconductor - General industry over the year-to-date period (+190.3% vs. +135.4%). 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. The Zacks analyst expect NVIDIA’s revenues to witness a CAGR of 46.4% through fiscal 2025-2027. However, softening IT spending amid macroeconomic headwinds and the US-China tech war remain major concerns.(You can read the full research report on NVIDIA here >>>)Shares of Microsoft have gained +11.9% over the year-to-date period against the Zacks Computer - Software industry’s gain of +13.3%. The company is riding on strong growth from Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenues are driven by growth in Azure and other cloud services. Productivity and Business Processes revenues continue to rise due to the strong adoption of Office 365 Commercial solutions. Microsoft 365 Consumer subscribers grew to 80.8 million in the third quarter. Continued momentum in the small and medium businesses and frontline worker offerings, as well as a rise in revenue per user, drove top-line growth. The Zacks analyst expect fiscal 2025 net sales to grow 12.8% from fiscal 2024. However, the office's declining commercial licensing has been a headwind due to the continued customer shift to cloud offerings. Higher operating expenses and spending on Azure enhancements amid stiff competition in the cloud space remain a concern.(You can read the full research report on Microsoft here >>>)Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+63.0% vs. +44.3%). The company is benefiting from strong demand for its networking products. In second-quarter 2024, it witnessed strong demand for custom AI accelerators, AI networking solutions, Ethernet switching, optical lasers, thin dies, PCI Express switches and Network Interface Cards from hyperscale customers. Broadcom’s solutions are suitable for addressing the needs of an increasing AI workload and the growing need for fast networking in data centers. The acquisition of VMware has benefited Infrastructure software solutions. Its expanding clientele, which includes the likes of Alphabet and Meta Platforms, is noteworthy. AVGO’s strong partner base, including Arista Networks, Dell Technologies, Juniper and Supermicro, has been a key catalyst. AI revenues are now expected to be $12 billion for fiscal 2024.(You can read the full research report on Broadcom here >>>)Shares of Comstock have outperformed the Zacks Building Products - Home Builders industry over the year-to-date period (+143.9% vs. +26.8%). This microcap company with market capitalization of $106.61 million recorded strong revenue growth of 11% year over year, reaching $21.4 million in the first half of 2024. This growth is driven by high demand for its premium, transit-oriented properties like The Hartford and Reston Metro Plaza, with fully leased spaces attracting high-profile tenants such as Google, Rolls-Royce, and GuidePoint Security. The company’s focus on urban, commuter-friendly developments positions it well to capture long-term growth in the Washington D.C. market. Comstock's asset-light, debt-free model, combined with access to a $10 million credit facility, provides ample financial flexibility for future developments. Its diversified tenant base and strong occupancy rates reduce vacancy risk. However, the company faces concentration risk with heavy reliance on key developments. A structural shift toward remote work also poses challenges to its office leasing performance.(You can read the full research report on Comstock here >>>)Other noteworthy reports we are featuring today include Roche Holding AG (RHHBY), American Express Co. (AXP) and The Progressive Corp. (PGR).Mark VickerySenior EditorNote: 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 ReadNVIDIA (NVDA) Gains From Growing Adoption of GPU for AI and HPCAdoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)Strong Demand for Networking Products Aids Broadcom (AVGO)Featured ReportsVabysmo, Other New Drugs and Tests Fuel Roche (RHHBY) GrowthPer the Zacks analyst, strong growth of Vabysmo, Ocrevus, Evrysdi and Polivy boost Roche's top-line as legacy drugs face biosimilars. The base diagnostics business is also performing well.Robust Revenues & Cash Flows Aid American Express (AXP)Per the Zacks analyst, several growth-related initiatives, such as product launches, coupled with increased consumer spending aid revenue growth. Robust cash flows have enabled business investments.Solid Policies in Force, High Retention Aid Progressive (PGR)Per the Zacks analyst, Progressive is set to grow on, solid policies in force, competitive rates, leadership position and strength in both Vehicle and Property businesses.Uniform Rental Unit Aids Cintas (CTAS) Amid Rising CostsPer the Zacks analyst, Cintas' Uniform Rental & Facility Services unit is driven by penetration of additional products and services into existing customers. High operational costs remain a concern.Air Travel Aids TransDigm (TDG), Supply Chain Issues AilPer the Zacks analyst, TransDigm is likely to gain from rising air traffic and defense budget expansion. Yet supply chain issues and fuel costs might adversely impact its overall growth.Badger Meter (BMI) Rides on Favorable Customer Demand TrendsPer the Zacks analyst, Badger Meter's performance is gaining from solid order trends for its innovative smart water solutions. However, increasing competition and higher costs remain concerns. Dycom (DY) Banks on Black & Veatch Buyout and Strong DemandPer the Zacks analyst, Dycom's recent acquisition of Black & Veatch and solid demand from major customers and various rural fiber construction companies are expected to boost revenues by fiscal 2026.New UpgradesMcCormick's (MKC) Margins Gain on Savings From CCI ProgramPer the Zacks analyst, McCormick's Comprehensive Continuous Improvement program will likely protect margins amid cost inflation. This program helped drive gross margin expansion in the third quarter.Gap's (GAP) Brand Strength & Cost-Cutting Efforts EncouragingPer the Zacks analyst, Gap is making smooth progress in the reinvigoration of the brands. The company remains on track with its cost-management actions and simplification of its structure.Kirby (KEX) Benefits From Share Buyback and Solid Cash FlowPer the Zacks analyst, rewarding shareholders through share buybacks boosts investor confidence and positively impacts Kirby's bottom line. KEX's strong cash flow generating ability looks encouraging.New DowngradesReduced Spending by Upstream Companies to Hurt SLB's GrowthPer the Zacks analyst, reduced customer spending in key markets like North America limits SLB's ability to grow from long-term projects. Its high long-term debt also raises concerns.Choppy Log Prices, Lower Harvest Volume Hurt Rayonier (RYN)Per the Zacks analyst, limitations in raising delivered log prices, lower harvest volumes in its Timber segments, and a subdued construction market are likely to hurt Rayonier's performance.Retail Pharmacy Headwinds, Rising Debt Ails Walgreens (WBA) The Zacks analyst is concerned that an inflation-led pullback in discretionary spending and tough pharmacy trends are hurting Walgreens' U.S. Retail Pharmacy arm. Mounting debt balance concerns too. Infrastructure Stock Boom to Sweep AmericaA massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.The only question is “Will you get into the right stocks early when their growth potential is greatest?”Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How To Profit From Trillions On Spending For Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Comstock Holding Companies, Inc. (CHCI): Get Free ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks