Yahoo Finance Top Analyst Reports for Mastercard, SAP & Texas Instruments
Tuesday, September 12, 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), SAP SE (SAP) and Texas Instruments Incorporated (TXN). 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 year-to-date period (+20.4% vs. +16.3%). The company’s numerous acquisitions are helping 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. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows it to pursue acquisitions and prudently deploy capital via share buybacks and dividend payments.
However, steep operating expenses might stress margins. High rebates and incentives may weigh on 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 SAP have outperformed the Zacks Computer - Software industry over the past year (+64.1% vs. +38.9%). The company’s performance is benefiting from continued strength in its cloud business (especially the new Rise with SAP solution) across all regions. Momentum in SAP’s business technology platform particularly the S/4HANA solution along with opportunities presented by proliferation of generative AI bode well.
SAP’s restructuring plan is expected to align its go-to-market approach with its accelerated cloud transformation. Frequent product launches like Grow with SAP, and strategic acquisitions and collaborations are other tailwinds.
However, the company’s performance is affected by continued softness in the Software license and support business segment coupled with global macroeconomic weakness and geopolitical instability. Also, increasing research & development costs, and stiff competition in the cloud space are concerns.
(You can read the full research report on SAP here >>>)
Shares of Texas Instruments have gained +2.6% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +124.4%. The company is benefiting from solid momentum across its Embedded Processing segment. Growing demand for embedded technologies across the automotive and industrial markets is contributing well.
Additionally, continuous improvement in the automotive market is a tailwind. According to the Zacks analyst the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.
However, sluggishness in the Analog segment remains a concern. Further, weakening momentum across enterprise systems and communication equipment end-markets is a negative. Additionally, weak demand environment and imposition of new export regulations are headwinds.
(You can read the full research report on Texas Instruments here >>>)
Other noteworthy reports we are featuring today include Morgan Stanley (MS), Bristol-Myers Squibb Company (BMY) and AT&T Inc. (T).
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)
Solid Momentum in Cloud Business Driving SAP's Performance
Embedded Processing Strength Aids Texas Instruments (TXN)
Featured Reports
Restructuring Efforts Aid Morgan Stanley (MS) Amid Cost Woes
Per the Zacks analyst, Morgan Stanley's focus on becoming less dependent on capital-markets-driven revenue sources will aid the bottom line. Higher costs due to investments in franchise remain a woe.
Opdivo, New Drugs Fuel Bristol (BMY) Amid Generic Competition
Per the Zacks analyst, strong demand for Opdivo and encouraging uptake of new drugs fuel growth for Bristol Myers. However, one of the top drugs Revlimid is facing generics, which will impact sales.
AT&T (T) Rides on Fiber Densification, Wireless Traction
Per the Zacks analyst, AT&T is likely to benefit from fiber densification and solid growth in postpaid wireless business, driven by a customer-centric business model and higher-tier unlimited plans.
Hess (HES) Continues to Bank on Oil-Rich Stabroek Block
Hess has achieved numerous world-class oil findings in the prolific Stabroek Block, situated off the coast of Guyana. However, rising exploration expenses concern the Zacks analyst.
Strong Product Portfolio Aids DexCom (DXCM) Fight Competition
Per the Zacks analyst, DexCom strong product portfolio targeting the large and growing diabetes market is helping the company fight intensifying competition with entry new competing products.
Pricing Actions Benefits AGCO Corp. (AGCO) Amid High Costs
Per the Zacks analyst, AGCO's results will benefit from higher sales of highpower tractors. Moreover, pricing and cost reduction, and strategic investments will help offset impacts of elevated costs.
Flowers Foods (FLO) Gains From Pricing Amid Cost Inflation
Per the Zacks analyst, Flowers Foods has been benefiting from pricing amid cost inflation. In the second quarter, pricing/mix increased 13.3% and boosted sales in Branded Retail and Other channels.
New Upgrades
Solid Operating Model & Acquisitions Aid PulteGroup (PHM)
Per the Zacks analyst, PulteGroup's land acquisition strategies as well as solid operating model, which strategically aligns the production of build-to-order and quick-move-in homes bode well.
EPAM Systems (EPAM) Gains From Increase in Digital Spending
Per the Zacks analyst, EPAM Systems is gaining from a strong uptick in spending on digital transformation, which is further helping it grow across all its industry verticals and maximum locations.
NII, Balance Sheet Growth to Aid New York Community (NYCB)
Per the Zacks analyst, New York Community' efforts to drive balance sheet strength on the back of buyouts are encouraging. A favorable loan portfolio mix will aid NII and top-line expansion.
New Downgrades
Global Economic Conditions Hurt Spirit Aerosystems (SPR)
Per the Zacks analyst, geopolitical events like Russia's invasion of Ukraine and the associated U.S. sanctions have had a material adverse effect on orders from Spirit AeroSystems' customers.
Technology & Product Investment Costs Hurt Insperity (NSP)
Per the Zacks analyst, Insperity's investments toward technology, product and service offerings is likely to keep the bottom line under pressure.
Dismal Contract Sales Mar Marriott Vacations (VAC) Prospects
Per the Zacks analyst, Marriott Vacations operations are likely to be hurt by dismal contract sales and fall in VPG. Also, uncertain macro environment and inflationary pressures are a headwind.
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Morgan Stanley (MS) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
