Top Analyst Reports for Mastercard, CrowdStrike & Eni
Wednesday, October 19, 2022
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), CrowdStrike Holdings, Inc. (CRWD) and Eni S.p.A. (E). 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 declined -16.8% over the past year against Visa's (V) -19.6% decline and the S&P 500 index's -19% pullback.
Helping the stock hold up better are numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. Our estimates suggest revenues for 2022 to rise 17.9% from the 2021 levels. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for Mastercard's business to expedite its shift to the digital mode.
Its focus on the Southeast Asia and LatAm markets is expected to intensify. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital.
(You can read the full research report on Mastercard here >>>)
CrowdStrike shares have declined -44.7% over the past year against the Zacks Internet - Software industry’s decline of -64.9%. The company is facing intensifying competition in the security application market remains a concern. Also, elevated selling & marketing and research & development spends remain overhangs on the margins.
However, CrowdStrike is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and increasing necessity for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud-migration strategies adopted by organizations are key growth drivers.
Its portfolio strength, is mainly the Falcon platform’s 10 cloud modules which boosts its competitive edge and helps add users. Additionally, strategic acquisitions like that of Humio and Preempt, are expected to drive growth for the company. According to the Zacks analyst revenue estimates for CrowdStrike suggests CAGR of 42.2% through fiscal 2023-2025.
(You can read the full research report on CrowdStrike here >>>)
Eni shares have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-19.9% vs. +27.9%). The company’s balance sheet has more debt exposure compared with the composite stocks belonging to the industry. Also, it has been witnessing a year-over-year decline in oil and gas production volumes for the past few quarters. As such, the stock warrants a cautious stance.
Nevertheless, its constant efforts to expand its upstream operations will go a long way in generating growth. With discovery of huge oil resources this year, the firm’s production outlook seems bright. Eni made multiple discoveries in Egypt’s Meleiha concession.
With the discoveries, Eni adds 8,500 barrels of oil equivalent per day to its overall production. Moreover, the company expects to discover new exploration resources of around 700 million boe this year. Also, Eni increased its share buyback program by €1.3 billion to an annual total of €2.4 billion.
(You can read the full research report on Eni here >>>)
Other noteworthy reports we are featuring today include PepsiCo, Inc. (PEP), SAP SE (SAP) and The Kroger Co. (KR).
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
Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)
Per the Zacks analyst, CrowdStrike is gaining from solid contributions
Eni (E) to Benefit From Discoveries at Meleiha Concession
Featured Reports
PepsiCo's (PEP) Investments in Business Drive the Top Line
Per the Zacks analyst, PepsiCo benefits from investments in brands, go-to-market systems, supply chains, manufacturing capacity and digital capabilities to build competitive advantages, aiding sales.
SAP To Benefit From Continued Momentum in Cloud Business
Per the Zacks Analyst, SAP's performance is gaining from solid momentum in cloud business, mainly Rise with SAP solution. However, stiff competition and increasing costs are concerns.
Kroger's (KR) Expansion of Our Brands Portfolio to Fuel Sales
Per the Zacks analyst, Kroger has been expanding its product lines under Our Brands portfolio to offer customers greater value. The company launched 170 new items in the second quarter of fiscal 2022.
Investment Aid Edison International (EIX), Weak Financials Ail
Per the Zacks Analyst, Edison International's systematic capital investment strategy plan is likely to boost its growth in the long-term. However, company's weak financials remain a bottleneck.
Bio-Rad's (BIO) Global Diagnostics Demand Up Amid Cost Woes
The Zacks analyst is positive about Bio-Rad's Diagnostics business reflecting an elevated level of demand particularly in Asia. Yet, mounting costs and expenses raise concerns.
End-Market Strength Aids Flowserve (FLS), High Debt Hurts
Per the Zacks analyst, strength across end-markets, such as, oil & gas, chemical, power, general Industries and water are driving Flowserve's growth. However, high debt level remains concerning.
Corcept (CORT) Thrives on Korlym, Overdependence a Concern
Per the Zacks analyst, Corcept's Cushing's syndrome drug Korlym is witnessing higher sales and a strong uptake since approval. However, sole dependence on Korlym for revenues remains a headwind.
New Upgrades
Backlog, Positive Budget to Bolster Huntington Ingalls (HII)
Per the Zacks analyst, solid backlog count for Huntington Ingalls boosts its revenue growth prospects. Also, favorable U.S. budget for shipbuilding is expected to bolster the stock.
Increase in New Insurance Written Aid MGIC Investment (MTG)
Per the Zacks analyst, MGIC Investment is poised to grow on higher insurance in force, improved direct premium yield, higher annual persistency, lower claims and a strong capital position.
News Corporation's (NWSA) Digital-only Subscriptions Solid
Per the Zacks analyst, News Corporation is seeing a rise in digital-only subscriptions for a while. In fourth-quarter fiscal 2022, digital-only subscriptions to Dow Jones' consumer products rose 9%.
New Downgrades
Supply-Chain Issues & Geopolitical Tensions Hurt KLA (KLAC)
Per the Zacks analyst, KLA is facing supply-chain issues due to COVID-led lockdowns. Growing geopolitical tensions due to the new export rules by U.S. to cripple Chinese tech companies are headwinds.
High Costs & Dismal Entertainment Revenues Hurts Hasbro (HAS)
Per the Zacks analyst, Hasbro's performance is likely to be negatively impacted by increasing price sensitivity and dismal entertainment revenues.
Accenture (ACN) Hurt by Low Liquidity, Higher Talent Cost
Per the Zacks analyst, higher talent costs due to a competitive talent market hurt Accenture. Also, decreasing current ratio is a woe.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
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