Yahoo Finance Top Analyst Reports for Mastercard, AstraZeneca & Philip Morris
Wednesday, April 5, 2023
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 Mastercard Incorporated (MA), AstraZeneca PLC (AZN) and Philip Morris International Inc. (PM). 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 >>>
Mastercard shares have outperformed the Zacks Financial Transaction Services industry over the past year (+3.5% vs. -4.8%). Numerous acquisitions are helping the company to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for MA's business to expedite its shift to the digital mode.
Mastercard is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions as well as deploy capital through share buybacks and dividend payments.
However, steep operating expenses might stress margins. High rebates and incentives may weigh on the company's net revenues. Its dividend yield is still lower than the industry average. As such, the stock warrants a cautious stance.
(You can read the full research report on Mastercard here >>>)
Shares of AstraZeneca have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+29.7% vs. +17.0%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.
AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthened its immunology franchise, adding several drugs that are boosting its top line.
However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China.
(You can read the full research report on AstraZeneca here >>>)
Shares of Philip Morris have outperformed the Zacks Tobacco industry over the past year (+3.9% vs. -6.2%). The company has been gaining on its pricing power. Higher pricing variance was an upside to the company’s performance during the fourth quarter of 2022. During the quarter, top and bottom lines grew year over year and beat the Zacks Consensus Estimate.
Focus on reduced risk products, especially IQOS, has been working well for the company, which is witnessing a continued product mix shift from cigarettes to smoke-free products. These upsides are likely to boost organic revenues in 2023.
However, Philip Morris has been battling cost-related headwinds and expects certain margin pressures in the first half of 2023. Also, soft cigarette shipment volumes are a concern. In 2023, total international industry volume is estimated to decline by 1-2%, excluding China and the United States.
(You can read the full research report on Philip Morris here >>>)
Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), The TJX Companies, Inc. (TJX) and Citigroup Inc. (C).
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
Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)
Cancer Drugs Aid AstraZeneca (AZN) Sales; Pipeline Strong
Phillip Morris (PM) Gains From Smoke-Free Product Category
Featured Reports
Organic Growth Aids Goldman Sachs (GS), Cost Woes Prevail
Per Zacks analyst, business diversification along with sound capital position are likely to aid Goldman Sachs' (GS) growth. However, rising costs and legal hassles remain as headwinds.
The TJX Companies (TJX) Gains from Strong Marmaxx Segment
Per the Zacks analyst, The TJX Companies has been benefiting from strength in the Marmaxx segment. In fourth quarter, Marmaxx U.S. comp store sales grew 7% on solid apparel and accessories categories.
Citigroup (C) Progresses on Strategic Sales Amid Rising Costs
Per the Zacks analyst, Citigroup's progress on the consumer banking business exit will help focus on core operations. Yet, revamping technology and risk management framework might elevate expenses.
Dividends & Buybacks Lift CSX's Prospects Despite High Costs
The Zacks analyst is impressed with CSX's efforts to reward its shareholders through dividends and buybacks. However, elevated fuel costs are limiting bottom-line growth.
Qorvo (QRVO) Rides on Faster 5G Rollout, Portfolio Strength
Per the Zacks analyst, Qorvo is likely to benefit from the accelerated deployment of 5G and roll-out of Wi-Fi 6 and 6E technologies backed by greater diversification and a richer mix of new products.
Strong Demand for IVL Aids ShockWave Medical's (SWAV) Growth
Per the Zacks analyst sustained clinical acceptance and penetration of IVL is encouraging for ShockWave Medical. The fourth-quarter result were driven by strength across the entire Shockwave franchise
Built-to-Order Approach Aids KB Home (KBH) Amid Uncertainties
Per the Zacks analyst, built-to-order process enables buyers personalize their homes while ensuring low-cost production for KB Home. However, economic downturns hurt.
New Upgrades
Robust Product Portfolio & Bookings Aids Microchip (MCHP)
Per the Zacks analyst, Microchip's expanding product portfolio, solid demand for microcontrollers and bookings growth across industrial, data center, and automotive end markets are key catalysts.
Strong Demand, Growth in E-Commerce Sales Aid Grainger (GWW)
Per the Zacks analyst, Grainger is poised well to gain on strong demand in its end markets and efforts to strengthen customer relationships and investment in e-commerce and digital capabilities.
Cincinnati Financial (CINF) Benefits From Commercial Lines
Per the Zacks analyst consistent progress at the Commercial Lines Insurance segment backed by solid premiums earned and several growth initiatives contributes to revenue growth of Cincinnati Financial
New Downgrades
Rate Hikes & Subsidiary Dependence Ail Southwest Gas (SWX)
Per the Zacks analyst Southwest Gas's performance will get impacted as rising interest rates will surge borrowing cost. Lower than expected performance from subsidiaries could impact SWX's prospects.
Patterson-UTI (PTEN) Weighed Down by High Operating Costs
The Zacks analyst believes that Patterson-UTI Energy's increasing operating expense is a concern as it affects the profitability of its contract drilling operations.
Elevated Costs & High Debt Levels Hurt National Steel (SID)
The Zacks analyst is concerned that higher costs for raw materials and rising fuel cost will weigh on National Steel's margins. Elevated debt levels also remain a woe.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
