For Immediate Release
Chicago, IL – May 19, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA NVDA, Coca-Cola KO, PetroChina PTR, CVS Health CVS and Zoom Video Communications ZM.
Here are highlights from Monday’s Analyst Blog:
Q1 Scorecard and Research Reports for NVDA, KO, PTR and More
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily provides a real-time update on the Q1 earnings season, in addition to featuring new research reports on 16 major stocks, including NVIDIA, Coca-Cola and PetroChina. 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 >>>
Q1 Earnings Season Scorecard
For the 453 S&P 500 members that have reported Q1 results already, earnings are down -11.1% on +1.2% higher revenues, with 67.1% beating EPS estimates and 57.4% beating revenue estimates.
The pademic-related shelter-in-place policies took effect only in the last few weeks of the quarter, but the current period (2020 Q2) is expected to experience the brunt of Covid-related disruptions.
As a result, estimates for Q2 and the remainder of the year have been steadily coming down lately, though the pace of cuts has eased to some extent in recent days as the bulk of the Q1 reporting cycle has come to an end.
S&P 500 earnings are now expected to be down -42.3% in Q2, -23.8% in Q3 and -12.9% in 2020 Q4.
Today's Featgured Reports
NVIDIA’s shares have outperformed the Zacks General Semiconductor industry over the past year (+132.2% vs. +49.5%), with the stock benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues.
Moreover, an increase in Hyperscale demand remains a tailwind for the Data Center business. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, strength across desktop workstation products is aiding Professional Visualization revenues.
However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern. Also, lower demand for notebook workstations might be a near-term hindrance.
Shares of Coca-Cola have lost -15.1% over the past six months against the Zacks Soft Drinks Beverages industry’s fall of -12.6%. This modest underperformance notwithstadning, the Zacks analyst believes that innovation and investments in core categories and brands should remain key focus areas for the company, which should lead to the expansion of retail value share. It is gaining from the effective execution of strategies to evolve as a consumer-centric total beverage company.
The company continued with its earnings beat streak for the second straight quarter in first-quarter 2020. Despite a beat, its top line declined in the first quarter as gains from a strong start to 2020 were offset by disruptions in the latter half of the quarter due to the coronavirus pandemic.
It witnessed a decline in unit case volume, while price/mix and concentrate sales remained flat. The company expects the pandemic to significantly hurt second-quarter results. Also, adverse currency impacts are likely to persist.
PetroChina’s shares have lost -19.2% over the past three months against the Zacks International Integrated Oil industry’s fall of -33.8%. The Zacks analyst believes that limited international operations and losses on gas imports give investors more reason to be cautious on the stock.
With higher production and lower lifting costs supporting the state-run giant's upstream unit, the stock might gain further. PetroChina's E&P segment posted 6.1% increase in production in the first 3 months of 2020, while oil and gas lifting costs fell 8.9% from what it averaged in the March quarter of last year.
However, the historic oil price crash has hit PetroChina hard. Further, in a sign of weakness in the company’s downstream business, earnings plunged due to depressed domestic product demand, lower refined products sales and drop in price.
Other noteworthy reports we are featuring today include CVS Health and Zoom Video Communications.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
PetroChina Company Limited (PTR) : Free Stock Analysis Report
CVS Health Corporation (CVS) : Free Stock Analysis Report
CocaCola Company The (KO) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research