Wednesday, June 8, 2022
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 Incorporated (MA), Comcast Corporation (CMCSA), and NextEra Energy, Inc. (NEE). 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 over the past year (+0.7% vs. -30.3%) as well as rival Visa (-15.9%). The company’s profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard’s business to expedite its shift to digital mode. Its focus on the Southeast Asia and LatAm markets is expected to intensify.
The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital. However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.
(You an
read the full research report on Mastercard here >>>
)
Comcast
shares have declined -22.7% over the past year against the Zacks Cable Television industry’s decline of -24.9%. The Zacks analyst believes that the company persistently suffering from video-subscriber attrition due to cord-cutting. Moreover, a leveraged balance sheet is a major concern. Nevertheless, Comcast is benefiting from strength in broadband subscriber base and strong momentum in the wireless business. The company’s strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience.
Moreover, COVID-led increased media consumption and the work-from-home and online-learning waves bode well for Comcast’s Internet business. The company’s streaming service Peacock gained significant traction within a short span and is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
(You can
read the full research report on Comcast here >>>
)
NextEra Energy
shares have gained +12.3% over the past year against the Zacks Utility – Electric Power industry’s gain of +13.6%. The Zacks analyst believes that the company through proper execution of organic projects and strategic acquisitions is expanding its operations and efficiently serving more customers. NextEra Energy currently has a lot of renewable projects in its backlog and the number is rising every quarter, which is aiding NextEra to cut emissions.
The merger of Gulf Power and FPL strengthens NextEra Energy’s position in Florida. Improving Florida economy and FPL’s reliable services is expanding its customer volume in every quarter. The company has ample liquidity to meet its near-term debt obligations. However, nature of its business is subject to complex federal, state and other regulations. Unfavorable weather conditions and an increase in supply costs adversely impact earnings.
(You can
read the full research report on NextEra Energy here >>>
)
Other noteworthy reports we are featuring today include TotalEnergies SE (TTE), Mondelez International, Inc. (MDLZ), and Freeport-McMoRan Inc. (FCX).
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
Mastercard’s (MA) Accretive Buyouts Aid, Elevated Costs Hurt
Broadband Subscriber Gain Drives Comcast’s (CMCSA) Prospects
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Featured Reports
ConocoPhillips (COP) Banks On Oil-Rich Bakken Shale Assets
The Zacks analyst is upbeat about ConocoPhillips’ 750 undrilled locations in the Bakken Shale play, which will drive oil production growth. Yet, rising production and operating costs are concerning.
Mondelez International’s (MDLZ) Top Line Gains from Buyouts
Per the Zacks analyst, Mondelez International has been gaining from its prudent acquisitions. Contributions from Chipita, Grenade and Gourmet Food buyouts contributed to its top line in first quarter.
Exploration Progress, Debt Reduction to Aid Freeport (FCX)
Per the Zacks analyst, Freeport will gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid headwind from higher costs.
Project Investments, Productivity to Aid Air Products (APD)
While Air Products faces headwinds from higher power and fuel costs, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.
Aspen (AZPN) to Gain From Product Portfolio & Acquisitions
Per the Zacks analyst, Aspen’s diversified product portfolio is witnessing heathy momentum. The integration with Emerson’s OSI Inc and the Geological Simulation Software business also bodes well.
Chemed’s (CHE) Roto-Rooter Arm Grows Despite Staffing Issues
The Zacks analyst is upbeat about Chemed’s Roto-Rooter arm that continues to see robust demand for commercial and residential services. However, Roto-Rooter remains understaffed in several markets.
Increase in Membership Aid Planet Fitness (PLNT), Traffic Low
Per the Zacks analyst, Planet Fitness is likely to benefit from increased membership levels, marketing initiatives and expansion efforts. Decline in traffic from pre-pandemic levels is a concern.
New Upgrades
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies’s presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Imperial (IMO) to Gain from Majority Holding by ExxonMobil
The Zacks analyst believes that Imperial Oil’s financial backing by majority owner ExxonMobil adds to the company’s economic stability and helps it to access cheap capital.
Loan Demand, Higher Rates Aid SVB Financial (SIVB) Revenues
Per the Zacks analyst, SVB Financial is likely to benefit from a solid balance sheet, higher rates and solid loan demand. Global expansion strategy and acquisitions are also expected to aid growth.
New Downgrades
Perrigo (PRGO) Faces Pricing Pressure, Stiff Competition
Per the Zacks analyst, Perrigo’s revenues continue to be unfavourably impacted by pricing and other macro-economic pressures. Stiff competition remains a threat as well.
Zumiez (ZUMZ) Witnesses High SG&A Costs & Supply-Chain Issues
Per the Zacks analyst, Zumiez is witnessing higher SG&A costs for a while, which has been hurting margins. Also, global supply-chain issues, logistics costs and a tight labor market are concerns.
Challenging Market, High Costs Hurt Artisan Partners (APAM)
Per the Zacks analyst, challenging operating backdrop and geopolitical concerns might disrupt traditional asset allocations for Artisan Partners. Rising costs are likely to impede the bottom line.
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