Thursday, March 24, 2022
 

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 Tesla, Inc. (TSLA), Cisco Systems, Inc., (CSCO) and Advanced Micro Devices, Inc. (AMD). 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 >>>
 

Shares of Tesla have handily outperformed the Zacks Automotive - Domestic industry over the past year (+56% vs. +10.3%). Along with rising deliveries of Model 3, which is the bestselling EV in the world, Model Y is boosting Tesla’s prospects. With China being the biggest EV market, Tesla’s ambitious production plans in the country bode well.    
 

Robust production of Model 3 and Y from Shanghai gigafactory is a major positive catalyst. In addition to high automotive revenues, Tesla’s energy generation and storage revenues are also growing thanks to positive reception of Megapack and Powerwall products. Given the tailwinds, Tesla appears an attractive bet and is poised for stock price appreciation.
 

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

Shares of Cisco have modestly outperformed the Zacks Computer – Networking industry over the past year (+7.9% vs. +6.5%) on the back of strength in its product portfolio, customer segments and momentum in product order growth. Strength in Webscale business and solid uptake of switching solutions, especially Catalyst 9000 and Meraki offerings, along with robust adoption of the company’s subscription-based offerings were tailwinds. The company is benefiting from healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic.
 

The buyout of Acacia Communications bodes well for the long haul. Management cautioned that component shortages and ongoing supply chain issues are expected to persist in the rest of fiscal 2022 and bump up costs. This is likely to dent revenues and margin expansion. Shares have underperformed the industry year to date.
 

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

Shares of Advanced Micro Devices have outperformed the Zacks Electronics - Semiconductors industry over the past year (+49.5% vs. +20.4%). The Zacks analyst believes that AMD is benefiting from sales of its Ryzen and EPYC server processors, owing to increasing proliferation of Artificial Intelligence (AI) and Machine Learning (ML) in industries like cloud, gaming and datacenter domains. Growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is a key catalyst.
 

AMD provided strong 2022 guidance for revenues on the back of robust growth across all businesses. The sequential increase is projected to be led by higher server and client processor revenues. The Xilinx acquisition will boost AMD’s data center business. Moreover, alliances with Amazon, Microsoft, Baidu and JD.com augment business prospects. However, stiff competition from NVIDIA and Intel is a concern.
 

(You can read the full research report on Advanced Micro Devices here >>>)
 

Other noteworthy reports we are featuring today include CSX Corporation (CSX), Truist Financial Corporation (TFC) and The TJX Companies, Inc. (TJX).
 
Sheraz Mian
 
Director of Research
 
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>>>