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Top Research Reports for Mastercard, Disney & Abbott

Mark Vickery

Friday, June 7, 2019

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), Disney (DIS) and Abbott (ABT). 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 increased +28.9% in the past year, outperforming the Zacks Financial Transaction Services industry’s rally of +17.3%. The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives, and opportunities from the shift toward electronic payments. Its numerous acquisitions have aided revenue growth.

For several quarters now, the company has been gaining from higher switched transactions, increase in cross-border volumes and gross dollar volumes, and gains from acquisitions, partly offset by an increase in rebates and incentives. However, escalating costs will weigh on margins.

Also, in order to gain customers and more business, Mastercard has been incurring quite a high level of cost in terms of rebates and incentives, which remains a concern. However, its strong balance sheet enables business investment, thereby driving growth.

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

Shares of Disney have gained +25.5% year to date, outperforming the Zacks Media Conglomerates industry’s gain of +22.3% during the same period. The company’s top line in the near term is expected to benefit from the solid performance of Avengers: Endgame. Currently, the film holds the record for the fastest earning $1 billion film globally, beating Avengers: Infinity War’s record.

The Zacks analyst thinks Disney is likely to benefit from the strong adoption of ESPN+. Further, Disney+ (to be launched this November), which will be supported by Disney and Fox’s content, may give tough competition to Netflix and Amazon.

But increasing investments in ESPN+ and Disney+ and losses from streaming technology services are expected to hurt margins. Higher programming costs at ESPN due to increase in contractual rates for a few sports programs may keep profits under pressure.

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

Abbott’s shares have gained +26.6% over the past year, significantly outperforming the Zacks Medical Products industry, which has increased +2.2% over the same period. Abbott exited first quarter 2019 with better-than-expected earnings and revenues figures.

The Zacks analyst likes the company’s strong and consistent performance by the company’s EPD and Medical Devices segments on an organic basis. The company has been hogging the limelight within Diabetic Care on the growth it has enjoyed with FreeStyle Libre. Within Structural Heart, worldwide strong uptake of MitraClip has improved further following the FDA approval of its upgraded version.

This apart, synergies from Alere consolidation in the form of revenues from Rapid Diagnostics have been driving growth. On the flip side, sluggish Rhythm Management arm in the United States is denting growth. Increasing currency headwinds has somewhat dented Abbott’s international performance in the past-reported quarter.

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

Other noteworthy reports we are featuring today include Workday (WDAY), AutoZone (AZO) and Sun Life (SLF).

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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

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

Robust Parks & Resorts, Studio Strength Drive Disney (DIS)

Organic Growth Aids Abbott (ABT), Alinity Drives Diagnostics

Featured Reports

Workday (WDAY) Rides on HCM Capabilities & Cloud Platforms

Per the Zacks analyst, Workday's revenue growth continues to be driven by high demand for its HCM and financial management solutions. Also, its diversified product portfolio is a positive.

DIY & Commercial Products Aid AutoZone (AZO) Amid Cost Woes

Per the Zacks analyst, offering high-quality DIY and commercial products through an efficient supply-chain network aids AutoZone.

Restructuring Aids PPG Industries (PPG) Amid Input Cost Woes

Per the Zacks analyst, cost savings from restructuring actions should support PPG Industries' margins amid headwinds from raw material cost inflation.

Focus on Asia Business Aids Sun Life (SLF), High Costs Ail

Per the Zacks analyst, Sun Life is poised to grow on intensified focus on emerging economies of Asia and expanding Global Asset Management business.

Campbell Soup (CPB) Top Line to Gain From Solid Snacks Unit

Per the Zacks analyst, Campbell Soup is set to gain from focus on strengthening the growing snacks category. Notably, sales from this unit surged 37% and formed 53% of top line in the third quarter.

Loan Growth Aids Webster Financial (WBS), High Costs A Woe

Per the Zacks analyst, Webster Financial's organic strength is reflected by rising loans and deposits balances along with easing margin pressure.

Passenger Revenues Buoy Gol Linhas (GOL) Amid High Costs

The Zacks analyst likes the uptick in passenger revenues on the back of strong demand for air travel.

New Upgrades

General Mills' (GIS) Savings Plans Likely to Aid Bottom Line

Per the Zacks analyst, General Mills is set to gain from the Holistic Margin Management plan. This boosted margins in the third quarter and is expected to generate greater savings this year.

Hess Corp. (HES) to Ride on Offshore Guyana Oil Discoveries

The Zacks analyst believes that world-class discoveries made in the offshore Guyana region will boost Hess' hydrocarbon production in the coming years.

Cardio & Vascular Product Line Aids Integer Holdings (ITGR)

Integer Holdings has been gaining from its Cardio & Vascular product line. The Zacks analyst is optimistic about strong demand across other areas like structural heart and peripheral vascular.

New Downgrades

High Business Realignment Costs to Hurt Parker-Hannifin (PH)

Per the Zacks analyst, high business-realignment expenses and costs related to integration of acquired assets will continue to drag Parker-Hannifin's profitability. High debt level remains a concern.

Competition For Lead Drug Tymlos Weighs on Radius (RDUS)

Per the Zacks analyst, while Radius' lead drug Tymlos gains traction, competition has stiffened up for the drug. Moreover, the lack of late-stage candidates in the company's pipeline is a concern.

Stiff Competition, Generic Threats Hurt AMAG (AMAG)

Pe the Zacks analyst, AMAG faces stiff competition and some of the company's drugs also face generic threats which remain a concern.

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Workday, Inc. (WDAY) : Free Stock Analysis Report
Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
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