Top Stock Reports for Mastercard, Novartis & Boeing

Monday, June 8, 2020

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), Novartis (NVS) and Boeing Company (BA). 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 outperformed the Zacks Financial Transaction Services industry over the past year (+17.2% vs. +13.1%). The Zacks analyst believes that the company is gaining from shifts in payments from physical to digital. Investment in technology keeps it at the forefront of the rapidly-evolving payments industry.

Its solid capital position enables investment in business. However, escalating costs might put pressure on the margins. The company also cancelled its annual 2020 outlook for net revenue and operating expense growth due to coronavirus-induced business loss. Share buyback delays and low profitability are other woes.

However, the company has announced second-quarter 2020 operating metrics regarding switched volumes, switched transactions and cross-border payments, which reflected stabilization in business volumes. Mastercard is also witnessing buoyant demand for its Data & Analytics and Cyber solutions.

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

Shares of Novartis have lost -7.2% over the past six months against the Zacks Large-Cap Pharmaceuticals industry’s rise of +2.3%. The Zacks analyst believes that solid performance of key drugs like Cosentyx and Entresto, and contributions from Kisqali and gene therapy, Zolgensma, have also boosted performance in recent times.

Moreover, the company maintained its annual outlook even amid uncertainties related to the coronavirus pandemic. While the impact of forward purchasing will be reversed as the year progresses, these drugs and new launches like Piqray, Mayzent and Beovu should further boost sales.

The biosimilar portfolio also gains traction with new key approvals. However, price erosion in the United States has adversely impacted the generics business. Moreover, pipeline setbacks and generic competition are concerning.

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

Boeing shares have lost -9.6% over the past three months against the Zacks Aerospace & Defense industry’s rise of +4.5%. The Zacks analyst believes that increased U.S. defense budget should act as a growth catalyst for defense players like Boeing.

Although its commercial business outlook for the near term appears grim, over the long run, the jet maker holds immense growth prospects. The massive demand for commercial jets generates a strong demand for aviation services, which should bode well for this stock.

However, COVID-19 outbreak and grounding of the 737 MAX jets significantly impacted Boeing’s business. Particularly, lower 737 deliveries have been hurting its earnings and cash flow for past couple of quarters. Moreover, Airbus beat Boeing as the world’s largest plane maker, for the first time in last eight years in 2019.  

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

Other noteworthy reports we are featuring today include Sanofi (SNY), International Business Machines (IBM) and Honeywell International (HON).

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Sheraz Mian

Director of Research

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)

New Drugs Boost Novartis (NVS) Amid Generic competition

Positive Budget Aids Boeing (BA) Amid Poor 737 Deliveries

Featured Reports

Sanofi (SNY) Specialty Care & Vaccines Unit Support Sales

The Zacks analyst says that Sanofi's Specialty Care unit is on a strong footing with regular label expansion of Dupixent.

Robust Adoption of Cloud Solutions Aids IBM Amid High Debt

Per the Zacks analyst, IBM's blockchain, cloud and ML capabilities, among others poises its offerings well to gain robust adoption.

Defense Business Aids Honeywell (HON), Soft Demand Ails

Per the Zacks analyst, persistent strength across space and defense businesses to drive Honeywell's performance in the near term.

Business diversification Aids Goldman (GS), Legal Woes Linger

Per Zacks analyst, business diversification is a favorable factor for Goldman. Further, efforts towards expense management are expected to aid bottom-line expansion.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that increase in Southern Company's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.

Work-From-Home & Online Learning Wave Aids Zoom Video (ZM)

Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.

Strategic Initiatives Aid, Rising Expenses Hurt Humana (HUM)

Per the Zacks analyst, a series of buyouts and dispositions have poised the company well for long-term haul. However, its escalating expenses continue to weigh on the margins.

New Upgrades

Ross Stores' (ROST) Store Reopening Drive Optimism Post COVID

Per the Zacks analyst, Ross Stores reopened 700 stores in a phased manner as on May 14 following pandemic-related closures, which are showing positive trends. It plans to reopen more stores gradually.

Cost Actions & Inorganic Moves to Aid Stanley Black (SWK)

Per a Zacks analyst, Stanley Black (SWK) is likely to benefit from actions-reduction measures undertaken in April, with savings of $500 million anticipated in 2020.

Strong Product Portfolio, Buyouts to Drive EnerSys (ENS)

The Zacks analyst believes that EnerSys' strong product portfolio along with solid demand for its TPPL products and accretive acquisitions like Alpha Technologies will lend momentum to the company.

New Downgrades

Coronavirus & Low Margin Business to Hurt EMCOR (EME)

Coronavirus-led shutdowns and lower profits due to the mix of work within the manufacturing market is a pressing concern for EMCOR, per the Zacks analyst.

Softness in Locum Tenens Business Hurts AMN Healthcare (AMN)

The Zacks analyst is concerned about the revenue decline in AMN Healthcare's Locum Tenens business. Nationwide reduction in elective procedures has added to woes.

Weak U.S Beer Sales, COVID-19 Impact to Hurt O-I Glass (OI)

Per the Zacks Analyst, the impact of the COVID-19 pandemic and the continued slowdown in beer consumption in the United States will weigh on O-I Glass' results.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Sanofi (SNY) : Free Stock Analysis Report
 
Novartis AG (NVS) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
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