Today's Featured Research Reports
NVIDIA shares have recovered some of its lost ground following the DeepSeek unveiling, but they still remain outstanding performers. 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 partner 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 expects NVIDIA’s revenues to witness a CAGR of 50.5% through fiscal 2025-2027. However, softening IT spending amid macroeconomic headwinds and the U.S.-China tech war remain major concerns.
(You can read the full research report on NVIDIA here >>>)
Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+11.2% vs. +6.6%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.
With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Expansion in low-carbon tech, including Baytown's hydrogen facility, positions it for future growth.
Yet, refining margins are pressured due to global capacity increases, with refining profits softening. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped in the fourth quarter.
(You can read the full research report on Exxon Mobil here >>>)
ServiceNow shares have outperformed the Zacks Computers - IT Services industry over the past year (+30.1% vs. +9.5%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation.
ServiceNow had 2,109 total customers with more than $1 million in annual contract value (ACV) at the end of the fourth quarter, which represents 14% year-over-year growth in customers. ServiceNow had 19 deals greater than $5 million in net new ACV. It closed 170 deals greater than $1 million net new ACV. Generative Artificial Intelligence (Gen AI) deals continued to gain traction.
ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. Pro Plus AI grew 150% sequentially. It is riding on an expanding partner base and acquisitions. However, NOW is suffering from stiff competition and unfavorable forex.
(You can read the full research report on ServiceNow here >>>)
Shares of Willis Lease Finance have outperformed the Zacks Transportation - Equipment and Leasing industry over the past year (+304% vs. -7.8%). This microcap company with market capitalization of $1.32 billion have given excellent returns as global commercial aircraft leasing market is fueled by rising air travel demand and a shift toward leasing over ownership. WLFC is well-positioned to benefit, with 81% of its $2.8 billion portfolio focused on narrowbody engines, critical for short-to-medium haul routes.
In the first nine months of 2024, WLFC achieved record pre-tax earnings of $122.3 million. A new $1 billion credit facility boosts liquidity for growth, while sustainability initiatives position WLFC as a leader in aviation decarbonization. Vertical integration enhances profitability, with maintenance reserve revenues up 41% and spare parts sales surging 223% year over year.
However, headwinds include rising debt costs, supply chain disruptions, high MRO expenses, and reliance on short-term leases, which expose WLFC to cyclicality. Competitive and regulatory pressures further challenge profitability in a rapidly evolving landscape.
(You can read the full research report on Willis Lease Finance here >>>)
Other noteworthy reports we are featuring today include Royal Caribbean Cruises Ltd. (RCL), General Motors Company (GM) and Willis Towers Watson Public Limited Company (WTW).
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) Benefits From Rising Adoption of GPUs
ExxonMobil's (XOM) Guyana & Permian Basin Discoveries Aid
Growing Customer Base Drives ServiceNow's (NOW) Prospects
Featured Reports
Solid Bookings Aid Royal Caribbean (RCL) High Costs Hurt
Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, strength in onboard consumer spending and digital innovations. However, high fuel costs and macro woes ail.
General Motors (GM) to Benefit From Restructuring in China
The Zacks analyst sees promise in General Motors' restructuring efforts in China, which are starting to show results. The company aims to return its China business to profitability this year.
Willis Towers (WTW) Poised to Gain from Segmental Strength
Per the Zacks analyst, Willis Towers is set to gain from solid customer retention levels, growing new business and geographic diversification across segments. Yet, high costs weighing on margin ails.
Investments to Benefit CMS Energy (CMS) Amid Rising Costs
Per the Zacks analyst, investments will boost CMS Energy's grid upgrades. Yet rising costs for closure of solid waste disposal facilities for coal ash may hurt the stock.
Hologic (HOLX) Thrives on Molecular Business, Macro Woes Ail
The Zacks analyst is impressed that Hologic's Molecular Diagnostics business performance is driven by the BV/CV/TV assay and Biotheranostics. Yet, macroeconomic volatilities may hurt its operations.
Digital Expansion Fuels BJ's Wholesale (BJ) Sales Growth
Per the Zacks analyst, BJ's Wholesale Club has been investing in digital capabilities to enhance member engagement. Digitally-enabled sales rose 30% in the third quarter of fiscal 2024.
Dolby (DLB) Gains From Continued Strength in Vision & Atmos
Per the Zacks analyst, Dolby's performance is being cushioned by adoption of Dolby Atmos and Dolby Vision. The company expects these businesses to grow by 15% in fiscal 2025.
New Upgrades
Rayonier (RYN) Rides on Solid Portfolio & HBU Developments
Per the Zacks analyst, a solid timberland portfolio and focus on unlocking the long-term value of its HBU development and rural property portfolio are likely to support Rayonier.
Exparel Sales to Boost Pacira's (PCRX) Growth Prospects
Per the Zacks Analyst, Exparel is Pacira's growth engine and enjoys multi-layered patent protection which will ensure the drug's market exclusivity.
Solid Momentum in DIET Sector to Benefit MRC Global (MRC)
Per the Zacks analyst, MRC Global is poised to benefit from several contract wins in the DIET sector, driven by solid pipeline of projects from carbon-based energy to alternative forms of energy.
New Downgrades
Low Liquidity and Seasonality are Equifax's (EFX) Headwinds
Per the Zacks analyst, Equifax's liquidity has declined. The company's current ratio in the fourth quarter was 0.75 lower than the previous quarter's 0.88. Seasonality in business is an overhang.
High-Interest Expense and Seasonality Hurt Corpay (CPAY)
Per the Zacks analyst, higher interest expense due to an increase in LIBOR rate and additional borrowings is a headwind to Corpay's bottom line. Seasonality in business is an overhang.
Rising Operating Expenses to Impede KKR & Co. (KKR) Growth
Per the Zacks analyst, a rise in KKR & Co.'s operating expenses due to an increase in commission expenses and employee compensation expenses will likely hinder the company's bottom-line growth.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
Willis Lease Finance Corporation (WLFC) : Free Stock Analysis Report
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