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Top Analyst Reports for MasterCard, Netflix & Honeywell

Mark Vickery
Top Analyst Reports for MasterCard, Netflix & Honeywell

Thursday, September 21, 2017

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), Netflix (NFLX) and Honeywell International (HON). 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 >>>

Buy-rated MasterCard’s stock has outperformed the industry year to date (+37.7% vs. +27.3%). The company is well positioned for growth given its solid market position, ongoing expansion and digital initiatives, and significant opportunities from the secular shift toward electronic payments.

Revenue growth has remained strong and will continue to grow on the back of its strong market position and attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. The acquisition of VocaLink and NuData Security, complement the company’s efforts to participate in new payment flows and enhance its safety and security offerings. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2.6% upward over the last 60 days.

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

In the past year, Netflix shares have vastly outperformed the industry, gaining +93.6% vs. +33%. Netflix is benefitting from its focus on original programming and international expansion. The recent Emmy Award wins reflect the growing popularity of Netflix’s original content. The strength in content portfolio will help it to gain more subscribers across the globe.

Going forward, the company expects to add 0.75 million subscribers in the domestic streaming segment and 3.65 million subscribers in the international segment in the third quarter. The company’s efforts to attract viewers through investing in more regional programming should also boost user base.

Moreover, the company expects to report profits from International operations in the quarter. Nonetheless, investments in original/acquired content remain a drag on profitability. The Zacks analyst believe that Netflix’s ability to effectively manage costs will dictate its future prospects.

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

Shares of buy-rated Honeywell have outperformed the industry in the year to date period, increasing +19.7% vs. a -2.1% decline. The company’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks through a balanced organic and inorganic model.

The company’s balanced mix of long- and short-cycle businesses, along with a decent organic growth in new products and expansion in high-growth regions augur well on a long-term perspective. A diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positives.

With a flexible yet disciplined focus on cost and productivity, Honeywell remains focused on increasing its presence in high-growth regions. However, adverse foreign currency translations, high R&D expenses to fend off competition and volatility in commodity prices are likely to peg back its growth momentum to some extent.

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

Other noteworthy reports we are featuring today include Home Depot (HD), Goldman Sachs Group (GS) and BHP Billiton (BHP).

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Mark Vickery

Senior Editor

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 Global Business, Accretive Deals Aids Mastercard (MA)

Netflix (NFLX) Banks on Original Content to Boost User Base

Honeywell (HON) Remains Well Poised on Holistic Growth Model

Featured Reports

Vertex's (VRTX) Cystic Fibrosis Combo Drugs to Drive Growth

Vertex has two cystic fibrosis (CF) drugs - Kalydeco & Orkambi - in its portfolio with blockbuster potential. The Zacks analyst says that Vertex's triple combination CF regimens are crucial for growth

NextEra Energy (NEE) Set to Grow on Strong Investments

Per Zacks analysts, NextEra Energy (NEE) will grow from long-term investments in clean energy assets and improving economic condition in its service territory.

PCLI Acquisition Boosts HollyFrontier (HFC) Amid RFS Costs

The Zacks analyst believes that the Petro-Canada Lubricants buy has helped HollyFrontier expand into a high-margin business but is concerned about Renewable Fuel Standard costs.

Innovative Network Expansion Plans to Lift T-Mobile US (TMUS)

Per the Zacks analyst, despite a saturated wireless market, T-Mobile US' network expansion plans of 5G trials, 4G LTE network expansion and deployment of LTU-technology bode well.

BHP Billiton (BHP) Battles Market Rivalry on Iron-Ore Prices

The Zacks Analyst thinks elevated iron-ore prices will boost BHP Billiton's near-term results amid major headwinds such as stiff mining market rivalry, outbreak of natural calamities.

Lowe's (LOW) Pro Customer Strategy May Help Lift Sales

Per the Zacks analyst, Lowe's pro customer strategy, omni-channel efforts and merchandising initiatives may help boost sales.

Regency (REG) Poised for Growth with Grocery-Anchored Assets

Per the Zacks Analyst, Regency is poised for solid growth backed by premium portfolio of grocery-anchored shopping centers. Such centers are usually necessity driven.

New Upgrades

Home Depot's (HD) Focus on Pro Customers to Bolster Growth

Per the Zacks analyst, Home Depot is focused on Pro Customers category that posted solid sales in second-quarter. Growth of this category is evident from Compact Power and Interline Brands acquisition

General Mills' (GIS) Key Global Plans to Fight Sales Slump

Per the Zacks analyst, growing Cereal globally, improving U.S. yogurt, investing in differential growth opportunities and managing its foundation brands will help General Mills to boost sales.

Thermo Fisher (TMO) Enters CDMO Space, Gains on Buyouts

The Zacks analyst is upbeat on Thermo Fisher entering into the Contract Development Manufacturing Organization (CDMO) space through $7.2 billion Patheon buyout. A series of product launch raises hope.

New Downgrades

Legal Costs & Low Client Activities Linger for Goldman (GS)

As per the Zacks analyst, legal issues leading to higher expenses remain a concern for Goldman. Further, challenging environment depicting lower client activity levels add to the woes.

Harris (HRS) Hurt by Low Revenues, High Costs & Debt Levels

The Zacks analyst worries over Harris' revenue-related woes. High integration and restructuring costs from acquisition limit the bottom-line growth and increasing debt levels augments further fears.

Higher Input Costs, Volatile Oil Prices Hurts Grainger (GWW)

Per the Zacks Analyst, Grainger is plagued by inflationary expenses and volatile raw material prices. Unstable oil prices will hamper results due to high exposure in oil and gas markets.

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Netflix, Inc. (NFLX) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
Home Depot, Inc. (The) (HD) : Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (GS) : Free Stock Analysis Report
BHP Billiton Limited (BHP) : Free Stock Analysis Report
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