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Top Research Reports for Mastercard, PayPal & Thermo Fisher

Mark Vickery

Monday, May 6, 2019

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 (MA), PayPal (PYPL) and Thermo Fisher (TMO). 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 >>>

Buy-ranked Mastercard’s shares have increased +31.1% in the past year, significantly outperforming the Zacks Financial Transaction Services industry’s rally of +18.6%. Mastercard’s first-quarter earnings beat expectations and increased year over year.

Solid results were led by higher switched transactions, increase in cross-border volume and gross dollar volume, and gains from acquisitions, partly offset by an increase in rebates and incentives. The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives, and opportunities from the shift toward electronic payments. Its numerous acquisitions have aided revenue growth.

However, escalating costs will put pressure on margins. Also, in order to gain customers and new business, Mastercard has been incurring quite high levels of costs under rebates and incentives, which remains a concern. Nevertheless, its strong balance sheet enables business investment, thereby driving growth.

(You can read the full research report on Mastercard here >>>).

Shares of Buy-ranked PayPal have outperformed the Zacks Internet Software industry in the past year (+50% vs. +26%). PayPal reported mixed first quarter results with earnings surpassing expectations and falling short. However, both top-line as well as bottom line reflected year over year growth on the back of benefits from investment in MercadoLibre and increasing customer engagements on PayPal’s platform.

Further, robust Venmo and One Touch contributed well. Additionally, rapidly rising net new active accounts boosted growth in the company’s total active accounts. Growing momentum of the company’s core peer to peer also acted as a tailwind in accelerating its total payment volume.

The Zacks analyst thinks the weak eBay performance remains a headwind for the company’s total payment volume. Further, negative impacts of sale of the U.S. consumer credit receivables portfolio to Synchrony are risks to the company’s top-line growth.

(You can read the full research report on PayPal here >>>).

Thermo Fisher’s shares have outperformed the Zacks Medical Instruments industry in the past three months (+14.7% vs. +2.6%).Thermo Fisher ended first quarter 2019 with adjusted earnings and revenues surpassing expectations. The Zacks analyst thinks the company is demonstrating strength in all end markets categorized by customer type or geography.

In the quarter, the company registered solid international performance with strong growth in Asia-Pacific including China. Also, a series of product launches aided its performance. The company’s recent purchase of Brammer Bio, operating in the field of Gene and Cell Therapy, provides cause for optimism.

This apart, the purchase of Gatan should boost electron microscopy suite. Even after considering the impact of impending divestiture of its Anatomical Pathology business, the company's 2019 guidance looks encouraging.

On the flip side, Thermo Fisher’s operating segments are getting impacted by unfavorable business mix. Competitive headwinds and escalating costs pose a threat.

(You can read the full research report on Thermo Fisher here >>>).

Other noteworthy reports we are featuring today include Texas Instruments (TXN), Starbucks (SBUX) and Simon Property Group (SPG).

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Mark Vickery
Senior Editor

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

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Thermo Fisher's (TMO) End Markets Grow, Poor Business Mix Ails

Featured Reports

Texas Instruments (TXN) Gains from 5G Amid Demand Softness

Per the Zacks analyst, Texas Instruments' grip on the communications equipment market is benefiting from shipment of products required in 5G technology.

Starbucks (SBUX) to Gain From Robust Americas & CAP Comps

Per the Zacks analysts, robust performance by the Americas and China-Asia-Pacific (CAP) segments and store openings will continue to boost Starbucks' performance in the coming quarters.

Portfolio Revamp Aids Simon Property (SPG) Amid Retail Blues

Per the Zacks analyst, with a strong balance sheet, Simon Property is poised to gain from development, redevelopment and expansion efforts.

Fall in Model 3 Delivery & High Expenses Hurt Tesla (TESLA)

Per the Zacks analyst, Tesla is struggling with Model 3 deliveries to Europe and China, owing to longer transit time.

Cards, Online Banking Aid Capital One (COF) Amid Cost Woes

Per the Zacks analyst, strength in credit card and online banking operations, growth in loans and higher rates aid Capital One.

AMD Rides on Vega-Based GPU Product Rollouts & Partnerships

Per the Zacks analyst, Advanced Micro's release of Radeon RX Vega family of GPUs and alliance with companies like Baidu, Amazon, Tencent, Microsoft and will drive the top and bottom line.

Dividends & Buybacks Buoy Southwest (LUV) Amid Cost Woes

The Zacks analyst likes the company's efforts to reward shareholders.

New Upgrades

Martin Marietta (MLM) Gains From Solid Construction Activity

Per the Zacks analyst, Martin Marietta is poised to gain from large multi-year energy projects, along with improving residential, non-residential, and public construction demand trends.

Strategic Education (STRA) Gains From Strong Enrollment

Strategic Education is likely to gain from higher enrollment trend and effective cost-control measures undertaken at both Strayer and Capella Universities, per the Zacks analyst.

Robust Backlog, Improving Trailer Unit Aid Meritor (MTOR)

Per the Zacks analyst, strong truck backlogs and improving trailer business in the United States are driving Meritor's market share in the region.

New Downgrades

Competition, Rising Costs Hurt A. O. Smith Corporation (AOS)

Per the Zacks analyst, A. O. Smith is struggling with high selling, general & administrative expenses in China. Continuous rise in steel prices and intensifying competition are other concerns.

Weak Engineered Materials Segment Hurts Berry Global (BERY)

Per the Zacks analyst, weak performance in Berry Global's Engineered Materials segment due to supply disruption & customer destocking issues are weighing on its results. Rising cost remains a concern.

High Cost & Lack of Diversified Loans Hurt Cullen/Frost (CFR)

Per the Zacks analyst, steadily increasing non-interest expenses and high exposure to real estate loan portfolios continue to keep Cullen/Frost's financials under pressure.

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
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