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Top Stock Reports for Mastercard, Adobe & NVIDIA

Mark Vickery

Tuesday, November 26, 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), Adobe Systems (ADBE) and NVIDIA (NVDA). 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 year to date (+52.6% vs. +41.3%). The Zacks analyst believes that the company's revenues are gaining from higher switched transactions, increase in cross-border volume and gross dollar volume.

Numerous acquisitions made over the years have fueled its inorganic growth. The company is benefiting from shifts in payments, from physical to digital. Investment in technology has also kept the company at the forefront of the rapidly changing payments industry. Its solid capital position enables investment in business.

The Zacks Consensus Estimate for current-year earnings has been revised 1.1% upward over the last 30 days. However, escalating costs might put pressure on margins. In order to gain customers and new business, Mastercard has been incurring high levels of costs under rebates and incentives, which remain a concern.

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

Shares of Adobe have gained 4.9% in the past three months against the Zacks Software industry’s rise of 9.8%. The Zacks analyst remains optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud.

Adobe’s increasing demand for its creative products continues to drive its top-line growth. Also, the company’s Adobe Document Cloud and Adobe Experience Cloud products, along with growing subscription for cloud application are positives.

It has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion.

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

NVIDIA's shares have gained 52.2% over the past six months against the Zacks General Semiconductor industry's rise of 33.5%. The Zacks analyst believes that company is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues.

Solid momentum of its real-time ray tracing technology is also a positive. Increase in Hyperscale demand is a tailwind for Data Center business as well. Growing adoption in the inference market is an upside too. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, strength across mobile workstation products is aiding Professional Visualization revenues.

However, the company’s bleak guidance for the fourth quarter due to seasonality is a concern. Management expects strong sequential growth in Data Center to be offset by a seasonal decline in GeForce notebook GPUs and SoC modules for gaming platforms.

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

Other noteworthy reports we are featuring today include United Technologies (UTX), Lockheed Martin (LMT) and Estee Lauder (EL).

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 >>

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)

Adobe (ADBE) Rides on Creative Strength; Expenses A Concern

NVIDIA (NVDA) Gets a Boost From Gaming Business Recovery

Featured Reports

Aerospace Drives United Technologies (UTX), High Debt Hurts

Per the Zacks analyst, strong performance of United Technologies' aerospace business will drive its revenues.

Favorable Budget to Aid Lockheed (LMT), F-35 Cost Issues Woe

Per the Zacks analyst, expansionary U.S. defense budgetary provision should boost Lockheed's growth.

Solid Online Business to Fuel Estee Lauder's (EL) Top Line

Per the Zacks analyst, Estee Lauder sales will get a boost from solid online sales, which saw double-digit growth across all types of distribution channels in first-quarter fiscal 2020.

Rising Demand Aids Raytheon (RTN), High Material Costs Hurt

Per the Zacks Analyst, Raytheon enjoys solid order inflows from overseas courtesy of its combat-proven defense products.

Boston Scientific's (BSX) Rising Product Uptake Drives Growth

The Zacks analyst expects Boston Scientific to maintain its robust growth momentum across its structural heart and urology arms.

Order Flows to Aid Northrop (NOC) Amid Rising Cost Issues

Per the Zacks analyst, solid product portfolio enables Northrop to win notable orders, which bolster its top line.

Las Vegas Sands (LVS) Banks on Macao Business Amid High Debt

Per the Zacks analyst, Las Vegas Sands' planned investment in new capital projects in Macao and higher revenues from The Parisian Macao are likely to drive growth. Yet high debt remains a concern.

New Upgrades

Deckers' (DECK) Top Line to Gain on HOKA ONE ONE Brand

Per the Zacks analyst, Deckers' HOKA ONE ONE brand has been contributing to its top line. Management expects sales from the brand to be up in the mid to high 40% range for the year.

Allegiant (ALGT) Rides on Fleet Upgrade & Passenger Revenues

The Zacks analyst is impressed with passenger revenue growth at Allegiant backed by strong demand for air travel. Efforts to modernize its fleet are also encouraging.

EchoPark Growth, Cost Control to Aid Sonic Automotive (SAH)

Per the Zacks Analyst, Sonic Automotive is poised to gain from the expansion of its used-car segment, EchoPark, as well as focus on expense control and improving its balance sheet.

New Downgrades

Soft Traffic Trends Hurt Gap's (GPS) Comps and Top Line

Per the Zacks analyst, Gap witnesses dismal comparable store sales and sales due to soft traffic trends and declines across core brands.

Higher Material & Buyout Costs Hurts Beacon Roofing (BECN)

Per the Zacks analysts, higher raw material prices and costs related to acquisitions along with stiff competition are concerns for Beacon Roofing.

High Operating Costs and Debt Burden Ail Tenneco (TEN)

Per the Zacks analyst, high raw material costs and SG&A expenses along with elevated leverage of 70% are likely to mar the prospects of Tenneco, going forward.

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United Technologies Corporation (UTX) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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