Top Research Reports for Mastercard, Raytheon Technologies & BP

Tuesday, February 28, 2023

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), Raytheon Technologies Corporation (RTX) and BP p.l.c. (BP). 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 over the past year (+3.2% vs. -2.3%). The company’s numerous acquisitions are helping it to grow in addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for MA's business to expedite its shift to the digital mode.

Mastercard’s growing footprint in the crypto universe can position it for long-term growth. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions and deploy capital.

However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. Its dividend yield is still lower than the industry average. As such, the stock warrants a cautious stance.

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

Shares of Raytheon Technologies have gained +7.6% over the past six months against the Zacks Aerospace - Defense Equipment industry’s gain of +10.6%. The company continues to receive ample orders for its combat-proven defense products. A steady recovery in commercial air traffic continues to boost commercial OEM as well as commercial aftermarket sales for Raytheon. The stock holds a solid solvency position.

However, economic sanctions imposed by governments in response to Russia’s invasion of Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio indicates a relatively gloomy picture, which might be a cause for investors’ concern. The appreciating U.S. dollar has been burdening airlines, which may hurt the stock.

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

BP’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+41.1% vs. +20.2%). The company has a strong portfolio of upstream projects, backing impressive production growth. It boasted that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key projects was met successfully.

BP set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. Although there is no production from its Russia incorporated joint ventures, BP is projecting higher upstream volumes this year. Before reporting its December-quarter results, the energy major is willing to complete an additional $2.5 billion in share buy-backs.

However, the leading integrated energy company’s balance sheet is considerably more levered than most peers, limiting its financial flexibility. Also, increasing production & manufacturing costs have been affecting the company's income.

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

Other noteworthy reports we are featuring today include CVS Health Corporation (CVS), ICICI Bank Limited (IBN) and Uber Technologies, Inc. (UBER).

Director of Research

Sheraz Mian

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

Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)

Order Growth Aids Raytheon (RTX) Amid Jet Fuel Price Hike

BP to Benefit From Renewable Energy Project in Australia

Featured Reports

CVS Health (CVS) Digital Offerings Grow Amid Stiff Rivalry
The Zacks analyst is impressed with CVS Health's digital product expansion efforts helping it to add 7 million new customers during Q4. Yet, stiff rivalry remains a concern.

Technology, Loans Support ICICI Bank (IBN), High Costs Ail
Per the Zacks analyst, ICICI Bank's efforts to digitize operations, rising rates and steady loan and deposit growth will aid profitability. Yet, weak credit quality and higher costs are key headwinds.

Uber (UBER) Rides on Delivery Business Amid Rising Expenses
The Zacks Analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. However, rising costs and expenses are concerning as they pose a threat to Uber's bottom

Incyte (INCY) Jakafi Fuels Growth, Competition a Concern
Per the Zacks analyst, consistent growth in Incyte fueled by patient demand and encouraging uptake of other recently approved drugs should fuel Incyte. However, competition for Jakafi is stiff.

New Acquisitions Aids Royal Gold (RGLD), Lower Sales a Woe
Per the Zacks analyst, contribution from recent acquisitions will help offset the impact of lower sales and volatility in metal prices on Royal Gold's results.

Universal Display (OLED) Rides on Robust End Market Demand
Per the Zacks analyst, Universal Display will likely benefit from solid end-market demand for OLED technology backed by its robust portfolio of 5000 patents worldwide.

Steven Madden (SHOO) Brand Strength & DTC Unit Look Good
Per Zacks analyst, Steven Madden's business model, solid execution of its strategies and brand strength have been contributing to its performance. Its direct-to-consumer business is also encouraging.

New Upgrades

Hologic (HOLX) Surgical Volume Grows, Product Launches Aid
The Zacks analyst is impressed with Hologic's Surgical business growth on procedural volumes return as well as acceleration from new business lines. New assays within molecular diagnostics aid growth.

RenaissanceRe (RNR) Rising Premiums & Strategic Buyouts Aid
Rate increases will support RenaissanceRe's premium growth from Casualty and Specialty business, expects the Zacks analyst. Also, strategic acquisitions will bring in high-growth low-risk assets.

AXIS Capital (AXS) Set to Grow on Improved Portfolio Mix
Per the Zacks analyst, AXIS Capital continues to build on Specialty Insurance, Reinsurance plus Accident and Health. Improved portfolio mix and effective capital deployment should pave way for growth.

New Downgrades

Pricing Pressure Impact Stericycle's (SRCL) Bottom Line
Per the Zacks Analyst, consistent reduction in price and the inability to increase prices can significantly reduce the Stericycle's earnings.

Logitech (LOGI) Hurt by Soft Demand & Higher Component Costs
Per the Zacks analyst, waning pandemic-led demand for peripherals and accessories will hurt Logitech's sales in the near-term while elevated component costs might weigh on profitability.

Low Enrollments Impact Strategic Education's (STRA) Growth
Per the Zacks analyst, Strategic Education's low enrollment rates and inflationary pressure pose a threat to the growth of the company.

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BP p.l.c. (BP) : Free Stock Analysis Report

Mastercard Incorporated (MA) : Free Stock Analysis Report

ICICI Bank Limited (IBN) : Free Stock Analysis Report

CVS Health Corporation (CVS) : Free Stock Analysis Report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

Raytheon Technologies Corporation (RTX) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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