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The Zacks Analyst Blog Highlights: Mastercard, Honeywell, Thermo Fisher, Cigna and Norfolk Southern

Zacks Equity Research
Mastercard (MA) Q1 earnings gained on increase in revenues partly offset by rise in expenses.

For Immediate Release

Chicago, IL – April 10, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include:Mastercard MA, Honeywell HON, Thermo Fisher TMO, Cigna CI and Norfolk Southern NSC.

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Mastercard, Honeywell and Thermo Fisher

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, Honeywell and Thermo Fisher. 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 +35.2% in the past year, significantly outperforming the Zacks Financial Transaction Services industry’s rally of +25%. The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives, plus significant opportunities from the secular shift toward electronic payments. Its numerous acquisitions have aided revenue growth.

However, escalating costs will put pressure on the company’s bottom line. Also, in order to gain customers and new business, Mastercard has been incurring high levels of costs under rebates and incentives, which remains a concern. Nevertheless, its strong balance sheet enables its significant investments, thereby driving growth.

Shares of Honeywell have outperformed the Zacks Diversified Operations industry in the past year, gaining +11.3% vs. a +3.2% increase. Honeywell believes that strength in its commercial aftermarket and sensing businesses as well as solid demand for its productivity and commercial fire products will boost revenues in the quarters ahead.

The Zacks analyst thinks stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will likely augment its near-term profitability. Notably, the company anticipates generating organic sales growth in the range of 2-5% in 2019. Rising costs of revenues are a worry for the company's gross margin.

Also, analysts have become increasingly bearish on the company over the past 90 days. A rise in debt levels may increase its financial obligations.

Buy-rankedThermo Fisher’s shares have outperformed the Zacks Medical Instruments industry in the past three months (+16.5% vs. +8.1%). The Zacks analyst thinks Thermo Fisher is currently demonstrating strength in all end markets categorized either by customer type or geography. In the last-reported quarter, the company registered solid international performance with strong growth in the Asia-Pacific region including China.

A series of product launches with progress in precision medicine initiatives aided its performance. The company’s recent purchases of Advanced Bioprocessing business from BD and its initiative to buy Gatan to boost electron microscopy suite are encouraging moves.

Even after considering the impact of the company’s impending divestiture of its Anatomical Pathology business, its 2019 guidance looks pretty encouraging. On the flip side, Thermo Fisher’s business segments are getting impacted by unfavorable business mix. Also, competitive headwinds and escalating costs pose a threat.

Other noteworthy reports we are featuring today include Cigna and Norfolk Southern.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Cigna Corporation (CI) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
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