Top Stock Reports for Mastercard, SAP & CrowdStrike
Thursday, February 15, 2024
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 CrowdStrike Holdings, Inc. (CRWD). 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 (+28% vs. +19.7%) as well as rival Visa (28% vs. +24.1%) over the past year . The company’s numerous acquisitions are helping it 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 the firm'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 through share buybacks and dividend payments.
However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. 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 six months (+29.1% vs. +25.1%). The company’s performance is benefiting from continued strength in its cloud business, especially the Rise with SAP and Grow with SAP solutions. Momentum in SAP’s business technology platform, particularly the S/4HANA solution, along with proliferation of generative AI bodes well.
SAP is now focusing more on vital strategic growth areas, especially Business AI, and position the company for future growth. Management also reaffirmed its 2025 long-term targets for cloud and total revenues. Frequent product launches, and strategic acquisitions and collaborations are other tailwinds.
However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness are concerning. Increasing costs and stiff competition are additional headwinds.
(You can read the full research report on SAP here >>>)
CrowdStrike shares have outperformed the Zacks Internet - Software industry over the past year (+190.6% vs. +69.9%). The company benefits from the rising demand for cyber-security solutions due to a slew of data breaches and the increasing need 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. The company’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users.
Additionally, strategic acquisitions, such as Bionic and Reposify, are expected to fuel growth. However, intensifying competition in the security application market is a concern. Elevated selling & marketing and research & development spends remain overhangs on margins.
(You can read the full research report on CrowdStrike here >>>)
Other noteworthy reports we are featuring today include Eli Lilly and Company (LLY), Republic Services, Inc. (RSG) and AMETEK, Inc. (AME).
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
Strong Cross-Border Volumes Aid Mastercard (MA), High Costs Hurt
Solid Momentum in Cloud Business Driving SAP's Performance
CrowdStrike (CRWD) Rides on Product Strength, Acquisitions
Featured Reports
Lilly (LLY) New Products Hold Key to Long-Term Growth
The Zacks analyst believes Lilly's (LLY) new drugs like Mounjaro for diabetes and Zepbound for obesity, among others, are key to long term growth.
CNG Vehicles Aid Republic Services (RSG) Amid Low Liquidity
Per the Zacks analyst, Republic Services is focused on increasing its operational efficiency by shifting to compressed natural gas (CNG) collection vehicles. Low liquidity remains a concern.
AMETEK (AME) Rides on Acquisition Benefits & Organic Growth
Per the Zacks analyst, Navitar, Alphasense, Magnetrol International, and Crank Software buyouts are aiding AMETEK's Electronic Instruments unit. Strong organic growth continues to drive the top-line.
Engine Products Unit Benefits Howmet (HWM) Amid Rising Costs
Per the Zacks analyst, Howmet's Engine Products unit is driven by strength in the commercial aerospace, defense aerospace and industrial gas turbine markets. High operating costs remain a concern.
Tractor Supply's (TSCO) Life Out Here Strategy Bodes Well
Per Zacks analyst, Tractor Supply's Life Out Here Strategy is contributing to its performance. This strategy focuses on customers, digitization, execution, team members and total shareholder return.
Restructuring Initiatives Aid Mohawk (MHK), High Costs Ail
Per the Zacks analyst, Mohawk is benefiting from restructuring initiatives, bolt-on acquisitions and low input costs. However, residential sector softness, and high costs and expenses hurt prospects.
Loan, Rates Aid Valley National (VLY), Strain on NIM A Woe
Per the Zacks analyst, strategic buyouts, decent loan balance and high interest rates will aid Valley National's financials. Yet, elevated costs, pressure on NIM and commercial loan exposure are woes.
New Upgrades
Watts Water (WTS) To Benefit From Strong Product Portfolio
Per the Zacks analyst, WTS will benefit from product development, geographic expansion and efficient cost management. Strong balance sheet and synergies from recent acquisitions are tailwinds.
Digital & Store Initiatives to Aid Dillard's (DDS) Growth Story
Per the Zacks analyst, Dillard's is expected to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing domestic operations.
AXIS Capital (AXS) Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.
New Downgrades
Upstream Budget Tightness to Hurt NOV Inc. (NOV)
The Zacks analyst believes that the tightness in the upstream companies' investment budget is likely to continue through the near term, which is expected to weigh on NOV's revenues.
Rising Operating Costs to Continue to Hurt Hess (HES)
The Zacks analyst expects Hess' operating costs to continue rising, thereby hurting profit. Weakness in free cash flow will probably persist.
Patterson Companies' (PDCO) Diverse Products Offset Competition
Per the Zacks analyst, Patterson Companies continues to face stiff competitive landscape along with supplier concentration. A diverse portfolio and strength in animal and dental markets raise optimism
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
Mastercard Incorporated (MA) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
AMETEK, Inc. (AME) : Free Stock Analysis Report
CrowdStrike (CRWD) : Free Stock Analysis Report
