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Top Analyst Reports for Mastercard, Honeywell & Thermo Fisher

Mark Vickery
Mastercard (MA) Q1 earnings gained on increase in revenues partly offset by rise in expenses.

Tuesday, April 9, 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), Honeywell (HON) 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 >>>

Mastercard’s shares have increased +35.2% in the past year, significantly outperforming the Zacks Financial Transaction Services industry’s rally of +25%. The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives, plus significant opportunities from the secular shift toward electronic payments. Its numerous acquisitions have aided revenue growth.

However, escalating costs will put pressure on the company’s bottom line. Also, in order to gain customers and new business, Mastercard has been incurring high levels of costs under rebates and incentives, which remains a concern. Nevertheless, its strong balance sheet enables its significant investments, thereby driving growth.

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

Shares of Honeywell have outperformed the Zacks Diversified Operations industry in the past year, gaining +11.3% vs. a +3.2% increase. Honeywell believes that strength in its commercial aftermarket and sensing businesses as well as solid demand for its productivity and commercial fire products will boost revenues in the quarters ahead.

The Zacks analyst thinks stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will likely augment its near-term profitability. Notably, the company anticipates generating organic sales growth in the range of 2-5% in 2019. Rising costs of revenues are a worry for the company's gross margin.

Also, analysts have become increasingly bearish on the company over the past 90 days. A rise in debt levels may increase its financial obligations.

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

Buy-ranked Thermo Fisher’s shares have outperformed the Zacks Medical Instruments industry in the past three months (+16.5% vs. +8.1%). The Zacks analyst thinks Thermo Fisher is currently demonstrating strength in all end markets categorized either by customer type or geography. In the last-reported quarter, the company registered solid international performance with strong growth in the Asia-Pacific region including China.

A series of product launches with progress in precision medicine initiatives aided its performance. The company’s recent purchases of Advanced Bioprocessing business from BD and its initiative to buy Gatan to boost electron microscopy suite are encouraging moves.

Even after considering the impact of the company’s impending divestiture of its Anatomical Pathology business, its 2019 guidance looks pretty encouraging. On the flip side, Thermo Fisher’s business segments are getting impacted by unfavorable business mix. Also, 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 Danaher (DHR), Cigna (CI) and Norfolk Southern (NSC).

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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

Strong Balance Sheet, Acquisitions Aid Mastercard (MA)

High Operating Costs Hurt Honeywell International (HON)

Strategic Buys, End-market Strength Aid Thermo Fisher (TMO)

Featured Reports

Volumes, Dividends & Buybacks Buoy Norfolk Southern (NSC)

The Zacks analyst is impressed by the company's efforts to reward shareholders through dividends & buybacks.

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.

SAP Rides on Cloud Initiatives & Growth in S/4HANA Platform

Per Zacks analyst, SAP's resilient Cloud and Software business, act as staple growth drivers. Impressive growth in S/4HANA and other Cloud initiatives has supported the company's top line.

Strategic Initiatives Aid Aon (AON), High Debts Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped Aon enhance its capabilities, which has in turn improved its bottom-line.

Portfolio Overhaul to Drive Kimco (KIM) Amid Retail Blues

Kimco's progress on its 2020 Vision, which envisions strategic buyouts, portfolio revamp and asset sales, bodes well. But the Zacks analyst thinks online sales boom will likely hinder growth.

Strong Consumer to Consumer Business Aids Western Union (WU)

Per the Zacks analyst Consumer-to-Consumer business had aided revenue growth and will remain attractive driven by improvement in cross-border remittance and strong growth in digital platform.

Growing Topline Aids Ensign Group (ENSG), High Costs Hurt

Per the Zacks analyst, rising revenues driven by Transitional & Skilled Services has led to significant growth.

New Upgrades

Solid Life Sciences Business, Buyouts to Drive Danaher (DHR)

Per the Zacks analyst, solid traction of Danaher's Life Sciences business, led by strong demand for new products like Biomek i Series and Integrated DNA Technologies buyout, should drive its sales.

Las Vegas Sands (LVS) Banks on Macao Business to Drive Growth

The Zacks analyst believes that Las Vegas Sands' planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are likely to drive growth.

Rising Protein Demand to Continue Fueling Tyson Foods (TSN)

Per the Zacks analyst, Tyson Foods is gaining from rising demand for protein-packed food products. Moreover, the USDA expects domestic protein production to rise 3% year over year, in fiscal 2019.

New Downgrades

High Expenses, Leverage Bothers Cigna Corp. (CI)

Per the Zacks analyst, increase in expenses, that surpassed revenue growth in 2018, has weighed on margins. High debt level, from the buyout of Express Scripts poses financial risk.

Constellation Brands' (STZ) Soft Guidance Worries Investors

Per the Zacks analyst, Constellation's soft fiscal 2020 earnings view due to expectations of higher Canopy Growth-related interest expense and softness in wine & spirits business makes investors wary.

American Airlines (AAL) Stung by High Debts, 737 MAX Issues

The Zacks analyst is worried about its high debt levels. Flight cancellations due to the grounding of Boeing 737 MAX jets are increasing passengers' harassment, which in turn might hurt Q1 revenues.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
Cigna Corporation (CI) : Free Stock Analysis Report
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