Yahoo Finance Top Research Reports for Mastercard, Coca-Cola & T-Mobile US
Monday, May 8, 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), The Coca-Cola Company (KO) and T-Mobile US, Inc. (TMUS). 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 (+18.0% vs. +10.2%). Company’s numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. We expect the company's top line at $25.2 billion in 2023. 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 it to pursue acquisitions and prudently deploy capital.
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 Coca-Cola have gained +1.4% over the year-to-date period against the Zacks Beverages - Soft drinks industry’s gain of +10.3%. The company’s earnings and sales improved year over year and surpassed the Zacks analyst estimates in the quarter. KO’s results benefited from the continued momentum in its business.
Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments. It provided an upbeat guidance for 2023.
However, shares of Coca-Cola lagged the industry in the past three months. Pressures from higher supply chain costs, higher marketing spends and currency headwinds are concerning.
(You can read the full research report on Coca-Cola here >>>)
Shares of T-Mobile US have outperformed the Zacks Wireless National industry over the past year (+18.0% vs. -4.8%). With industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers, T-Mobile reported solid first-quarter 2023 results driven by diligent execution of operational plans.
The company has augmented its 5G footprint by introducing 5G Home Internet services in several states. T-Mobile plans to reach 300 million people within 2023. It intends to bring more competition to home broadband, especially in underserved rural markets.
However, T-Mobile operates in a fiercely competitive and almost saturated U.S. telecom market, which lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding profitability. Lower equipment revenues due to a challenging macroeconomic environment remain a concern. Debt obligation woes also persist.
(You can read the full research report on T-Mobile US here >>>)
Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Northrop Grumman Corporation (NOC) and EOG Resources, Inc. (EOG).
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)
Coca-Cola's (KO) Digital Investments to Aid the Top Line
T-Mobile (TMUS) Rides on Extensive Nationwide 5G Coverage
Featured Reports
Product Rollouts & Growing Merchant Base Aid Shopify (SHOP)
Per the Zacks analyst, Shopify is benefiting from products like Shopify Shipping, Shopify Payments and Shopify Capital solutions. New merchant friendly applications are also driving growth.
Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.
EOG Resources (EOG) Banks on the Prolific Delaware Basin
EOG Resources continues to bank on prolific plays like Delaware Basin and Eagle Ford, brightening the production outlook. However, rising lease & well expenses concern the Zacks analyst.
Datadog (DDOG) Rides on Strong Clientele, Higher Cloud Sales
Per the Zacks analyst, Datadog is benefiting from new customer additions and increased adoption of its cloud-based monitoring and analytics platform.
Ball Corp (BALL) Gains from Solid Demand Amid Cost Headwinds
Per the Zacks analyst, Ball Corp is set to gain from solid demand as customers now prefer cans over plastic. However, high costs and supply-chain issues remain a concern.
Dividends & Share Buyback Aid Triton (TRTN), High Costs Hurt
The Zacks analyst is optimistic about Triton's commitment to create value for shareholders. However, rising operating expenses are headwinds.
ImmunoGen's (IMGN) Growth Fueled by Elahere Launch
Per the Zacks analyst, ImmunoGen's recently launched drug Elahere can generate incremental revenue for the company, which can boost its topline in the next few years.
New Upgrades
E-Mobility Prowess to Drive General Motors' (GM) Prospects
High demand for General Motors' EVs like GMC Hummer e-pickup and Cadillac LYRIQ e-SUV, as well as the firm's efforts to bolster its battery supply chain makes the Zacks analyst bullish on the stock.
Unit Expansion & Digitalization to Aid Yum China (YUMC)
Per the Zacks analyst, Yum China is likely to gain from menu innovation unit expansion and digitalization efforts. It is gradually shifting toward digital and content marketing to expand customer base
Meritage Homes' (MTH) Focus on Entry-Level Buyers Bodes Well
Per the Zacks analyst, Meritage Homes benefits from the strategy of targeting entry-level and first-move-up buyers. Also, ample liquidity and a healthy balance sheet bode well.
New Downgrades
Capri Holdings' (CPRI) Grapples With Inflation & Other Woes
Per the Zacks analyst, Capri Holdings' performance has been hurt by inflationary headwinds, shift in consumer demand patterns, and weakness in wholesale channel. The company cuts fiscal 2023 view.
The Estee Lauder Companies' (EL) Margin Hurt by High Costs
Per the Zacks analyst, inflationary pressures are a concern for The Estee Lauder Companies gross margin. In the third quarter of fiscal 2023, its gross margin contracted 750 basis points to 69.1%.
Forex Woes Hurt Charles River's (CRL) International Sales
The strengthening of Euro and some other developed market currencies has been constantly hampering Charles River's performance in the international markets.
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Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
