In today’s briefing:
- NVIDIA’s Conundrum…
- Remain Overweight Large-Cap Growth; Downgrading Materials to Underweight; Software Buys $MSTR $CRWD
- TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers
- Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers
- Flowers Foods Inc.: How Are They Executing The Expansion in High-Margin Business Segments?
- Freshpet Inc.: Will Its Strategic Investments in Consumer Reach and Product Availability Pay Off? – Major Growth Drivers
- Globus Medical Inc.: How Are Their Strategic Acquisitions and Partnerships Catalyzing Growth? – Major Growth Drivers
- Graphic Packaging Holding Company: Is The Volume Growth & Market Expansion Here To Stay? – Major Growth Drivers
NVIDIA’s Conundrum…
- NVIDIA’s data center revenues tripled YoY in CY 2023 and are on track to more than double in CY 2024
- When Intel dominated the data centre and minted tens of billions annually, its customers benefited even more, minting hundreds of billions.
- If NVIDIA’s business model succeeds, its customers will succeed even more. This will make it extremely difficult for NVIDIA to remain the #1 global market cap stock.
Remain Overweight Large-Cap Growth; Downgrading Materials to Underweight; Software Buys $MSTR $CRWD
- Mega-Cap growth names such as AMZN, TSLA, MSFT, GOOGL, and META have picked up the slack as semiconductors (SMH, SOXX, NVDA, AVGO, etc.) are simply consolidating after getting extended.
- This was a possibility we discussed in last week’s Compass (6/25/24), which means we are not seeing any lasting rotation away from large-cap growth.
- We remain bullish on all names listed (including the semiconductors), and we continue to recommend an overweight to large-cap growth (relative to value) as initially discussed in our 5/29/24 Compass
TripAdvisor Inc.: Focus on User Engagement and Monetization Strategies & Other Major Growth Drivers
- Tripadvisor’s fourth quarter and full year 2023 financial results exceeded expectations with the company reporting revenue growth of 10% year-on-year amounting to $390 million in Q4.
- In the same period, the adjusted EBITDA was $84 million attributed to exceptional brand performance and marketing efficiencies.
- For the full year, the company reported a consolidated revenue growth of 20%, recording an all-time high of $1.8 billion, with adjusted EBITDA experiencing a 13% growth to $334 million.
Elanco Animal Health Incorporated: Will The Accelerated Global Rollout of Zenrelia Boost Its Top-Line? – Major Growth Drivers
- Elanco Animal Health Incorporated has demonstrated a strong start to 2024 with positive developments in multiple areas of its business, despite facing some challenges.
- The company has achieved encouraging financial and operational results, underscored by success in its strategic initiatives aimed at enhancement and innovation.
- Starting with the financials, Elanco surpassed its revenue, adjusted EBITDA, and adjusted EPS guidance for Q1 2024, indicating robust underlying business performance.
Ionis Pharmaceuticals Inc.: Expanding Pipeline with Promising Drug Candidates! – Major Growth Drivers
- Ionis Pharmaceuticals commenced the year 2024 with notable strides, particularly through the launch of WAINUA in the U.S. This product, among others in the pipeline, is expected to lead the company towards a more independent operation in drug commercialization.
- The company’s executives displayed confidence in the potential of upcoming products like olezarsen and donidalorsen to transform their respective therapeutic areas and achieve market penetration based on strong clinical results.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
AptarGroup Inc.: A Tale Of Recovery and Growth in North American Markets! – Major Growth Drivers
- Aptar, a global leader in drug delivery systems and consumer product dispensing, has reported robust first quarter financial results for 2024.
- The company disclosed a 5% core sales growth and a remarkable more than 30% increase in adjusted earnings per share (EPS) as compared to the previous year.
- Notably, the Pharma segment exhibited strong performance driven by sustained demand for its proprietary drug delivery systems, marking high single-digit core sales growth.
Flowers Foods Inc.: How Are They Executing The Expansion in High-Margin Business Segments?
- Flowers Foods, a packaged bakery goods company, recently discussed their first quarter 2024 financial results, highlighting a mix of both successes and ongoing challenges.
- They remained optimistic about the future, reinforcing their strategy based on portfolio optimization and cost efficiency.
- In terms of performance, the company reported solid results with an improvement in branded retail volumes for the first time since 2020.
Freshpet Inc.: Will Its Strategic Investments in Consumer Reach and Product Availability Pay Off? – Major Growth Drivers
- Investment analysis and result summary for Freshpet’s first quarter of 2024 show a mixed yet optimistic outlook for the company’s financial and operational progress.
- The company reported a robust 34% increase in net sales amounting to $223.8 million, mainly driven by substantial volume growth of 31%.
- This positive development suggests a successful adaptation to significant pricing changes, highlighting effective management and resilient operational frameworks.
Globus Medical Inc.: How Are Their Strategic Acquisitions and Partnerships Catalyzing Growth? – Major Growth Drivers
- Globus Medical recently disclosed its financial results for the first quarter of 2024, showcasing significant growth and strategic advancements post the integration with NuVasive.
- The company reported a remarkable 119% increase in sales, reaching $607 million, and a 36% rise in non-GAAP EPS to $0.72.
- This period marks the first quarter of the combined field organizations of Globus and NuVasive, underscoring a robust integration process aimed at streamlining operations and escalating market reach.
Graphic Packaging Holding Company: Is The Volume Growth & Market Expansion Here To Stay? – Major Growth Drivers
- Graphic Packaging Holding Company’s performance in the first quarter of 2024 presents a mixed picture.
- Despite challenging market conditions, the company demonstrated resilience, attributed to its diversified portfolio and strategic initiatives, which may hold implications for stakeholders considering investment in the firm.
- On the revenue front, Graphic Packaging saw its sales reach $2.3 billion.
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