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Top Stock Reports for Mastercard, Disney & Bank of America

Sheraz Mian
·6 min read

Tuesday, September 22, 2020

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 Bank of America (BAC). 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 in the year to date period (+9.8% vs. +1.7%). The Zacks analyst believes that Mastercard’s strategic acquisitions, alliances and technology upgrades, along with product-diversification and geographic-expansion initiatives augur well for the long term.

It is gaining from an increased demand for digital and contactless solutions owing to the COVID crisis. Investment in technology keeps it at the forefront of the rapidly-evolving payments industry. It is also witnessing buoyant demand for its Data & Analytics and Cyber solutions.

Mastercard’s solid capital position enables investment in business and returning value to shareholders. However, escalating costs might put pressure on the company’s margins. It also cancelled its annual 2020 outlook for net revenues and operating expense due to coronavirus-induced business loss.

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

Shares of Disney have lost -5.3% over the past year against the Zacks Media Conglomerates industry’s fall of -7.2%. The Zacks analyst believes that Disney has been benefiting from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering despite stiff competition.

The availability of Mulan on Disney+ is expected to boost app downloads. Moreover, upcoming launches in the Nordics, Belgium, Luxembourg, Portugal and Latin America are expected to rapidly expand Disney+’s subscriber base. However, Disney’s businesses continue to be affected by the coronavirus pandemic.

Shanghai Disney Resort re-opened in May and Hong Kong Disneyland Resort, despite reopening in late June, was closed again in July. The pandemic affected Disney’s third-quarter segmental operating income by $3.5 billion. Moreover, a leveraged balance sheet is a significant headwind.

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

Bank of America’s shares have gained +35.3% over the past six months against the Zacks Major Regional Banks industry’s rise of +23.7%. The Zacks analyst believes that opening of new branches, steady improvement in digital offerings and efforts to manage expenses will likely aid profitability.

A strong balance sheet and liquidity position are expected to continue supporting the company's financials amid economic slowdown. However, near-zero interest rates and no near-term chance of any change in the same are expected to hurt the bank’s margins and interest income.

Also, coronavirus-induced concerns will likely continue to hamper business activities. Thus, loan growth is expected to be muted. Further, dependence on capital markets performance is another concern, given its cyclical nature.

(You can read the full research report on Bank of America here >>>)

Other noteworthy reports we are featuring today include Johnson & Johnson (JNJ), Coca-Cola (KO) and Cisco Systems (CSCO).

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

Disney+ Drives Disney (DIS) Amid Coronavirus-Led Disruption

Digitization, New Branches Aid BofA (BAC) amid Lower Rates

Featured Reports

J&J's (JNJ) Pharma Segment Resilient Amid Generic Headwinds

Per the Zacks analyst, J&J's Pharma unit is performing at above-market levels, helped by the label expansion of its blockbuster drugs.

Coca-Cola (KO) to Streamline Portfolio for Enhanced Recovery

Per the Zacks analyst, Coca-Cola's strategy of streamlining the portfolio of brands is likely to boost the supply chain.

Cisco (CSCO) to Gain From Security Products & Webex Adoption

Per the Zacks analyst, Cisco is poised to benefit from expanding presence in the rapidly growing security market.

Cost Saving Actions Aid Caterpillar (CAT) Amid Weak Demand

Per the Zacks analyst, Caterpillar's focus on cutting down costs will help sustain margins despite weak demand due to the pandemic.

Buyouts, Loan Demand Aid Morgan Stanley Amid Lower Rates

Per the Zacks analyst, decent loan demand along with Morgan Stanley's focus on less capital-market dependent businesses will likely aid its top line.

Target's (TGT) Omnichannel Endeavors to Propel Top Line

Per the Zacks analyst, Target's focus on enhancing omnichannel capacities, and expanding same-day delivery options has been fueling sales.

Yum Brands (YUM) Banks On Digital Efforts, Traffic Dismal

Per the Zacks analyst, Yum Brands is likely to benefit from digital initiatives and third-party delivery services.

New Upgrades

COVID-19 Tests Sales, New Pacts Aid Quest Diagnostics (DGX)

The Zacks analyst believes the expanded long-term deal with UnitedHealthcare seems strategically aligned for Quest Diagnostics in the field of value-based programs.

Rising Loans, Fee Income Boost Fifth Third's (FITB) Top-Line

Per the Zacks analyst, organic growth remains a key strength at Fifth Third. Rising loans and deposits reflect strong liquidity position.

Solid Segments, Market Volatility Aid Virtu Financial (VIRT)

Per the Zacks analyst, its Market Making and Execution Services segments have been contributing to its overall revenues, thus helping it grow.

New Downgrades

Rogers Communications (RCI) Hurt By Weak Service Revenues

Per the Zacks analyst, Rogers Communications is hurt by lower roaming revenues attributed to lower overall roaming activity due to travel barriers that is negatively impacting service revenues.

Strategic Buyouts Aid, High Costs Hurt United Health (UHS)

Per the Zacks analyst, its strategic acquisitions such as The Danshell Group has led to significant growth.

Spirit (SAVE) Hurt by Coronavirus-Led Weak Air-Travel Demand

The Zacks analyst is concerned about Spirit's loss of passenger revenues, thanks to coronavirus weighing heavily on air-travel demand.


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Mastercard Incorporated (MA) : Free Stock Analysis Report
 
CocaCola Company The (KO) : Free Stock Analysis Report
 
Johnson Johnson (JNJ) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
 
Bank of America Corporation (BAC) : Free Stock Analysis Report
 
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