Thursday, August 8, 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), The Home Depot, Inc. (HD) and Vertex Pharmaceuticals Incorporated (VRTX), as well as a micro-cap stock Moving iMage Technologies, Inc. (MITQ).  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 were hit hard in the recent market downturn, but the stock appears to have regained its earlier momentum in recent days; the stock is now up +109.5% in the year-to-date period vs. +9.3% gain for the S&P 500 index. Driving the stock's strong performance is the company's leadership position in the AI-centric chips. 

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 Home Depot have gained +4.3% over the past year against the Zacks Building Products - Retail industry’s gain of +5.0%. The company has been witnessing benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience. 

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. It on track with its strategic investments to build a Pro ecosystem. 

However, the company's top and bottom-lines declined year over year in first-quarter fiscal 2024. Results were impacted by a deflation in lumber and copper prices and pressures from softness in big-ticket discretionary categories, which weighed on comps. 

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

Vertex Pharmaceuticals shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+14.5% vs. -6.0%). The company’s cystic franchise sales continue to grow, driven by higher sales of Trikafta/Kaftrio in younger age groups. Its one-shot gene therapy, Casgevy, was approved for two blood disorders in multiple regions, which diversified its commercial opportunity. 

Vertex has additional near-term launches planned — suzetrigine in acute pain and vanza triple in CF. It is rapidly progressing its mid- and earlier-stage pipeline, with multiple milestones expected in the second half of the year. 

The Alpine acquisition has added povetacicept, which Vertex believes has a “pipeline in a product” potential. However, Vertex’s dependence on just the CF franchise for revenues is a concern. CF sales are slightly slowing down.

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

Shares of Moving iMage Technologies’ have underperformed the Zacks Technology Services industry over the past six months (-2.1% vs. -27.7%). This microcap company with market capitalization of $6.11 million is witnessing supply chain disruptions, competition from OTT platforms and regulatory compliance costs pose risks.

Nevertheless, Moving iMage Technologies' new share repurchase program, effective until Jun 30, 2024, signals confidence in financial stability and growth. This follows a previous program where 6.3% of shares were repurchased. 

MiT's significant contract win with Alamo Drafthouse Cinema and expansion into high-margin SaaS and subscription-based products like MiTranslator and CineQC promise higher margins and recurring revenues. Diversifying into live entertainment and esports markets mitigates cinema industry cyclicality. 

Operating in a growing market, MiT is well-positioned to capitalize on technological advancements and increased demand for high-quality cinema experiences. Financial stability, as evidenced by $5.9 million in cash, supports growth.

(You can read the full research report on Moving iMage Technologies here >>>)

Other noteworthy reports we are featuring today include Automatic Data Processing, Inc. (ADP), Arista Networks, Inc. (ANET) and The PNC Financial Services Group, Inc. (PNC).

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>>>