Top Stock Reports for Mastercard, Oracle & Adobe
Thursday, July 6, 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), Oracle Corporation (ORCL) and Adobe Inc. (ADBE). 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 (+24.0% vs. +12.9%). Company’s numerous acquisitions are helping the it to grow 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.
It is well-poised to gain from steady cash-generating abilities. A strong capital position allows it to pursue acquisitions and prudently deploy capital via share buybacks and dividends.
However, steep operating expenses might stress margins. High rebates and incentives may weigh on the company's 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 Oracle have outperformed the Zacks Computer - Software industry over the past year (+64.7% vs. +29.9%). The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings.
Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with NVIDIA and Microsoft benefits Oracle.
Oracle is partnering with NVIDIA to build the world's largest high-performance computer, an AI computer, with 16,000 GPUs. The company also announced that it is launching a generative AI cloud service for enterprise customers. However, stiff competition is hurting growth.
(You can read the full research report on Oracle here >>>)
Shares of Adobe have outperformed the Zacks Computer - Software industry over the past six months (+42.5% vs. +42.0%). The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Rising subscription revenues and solid momentum across the mobile apps were major positives.
Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.
However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. High acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
Other noteworthy reports we are featuring today include Accenture plc (ACN), QUALCOMM Incorporated (QCOM) and Schlumberger Limited (SLB).
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)
Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Featured Reports
Accenture (ACN) Gains From Service Demand Amid Talent Cost
Per the Zacks analyst, Accenture has been steadily gaining traction in its outsourcing and consulting businesses backed by high demand for services. A competitive talent market remains a concern.
Qualcomm (QCOM) Rides on 5G Traction, Automotive Strength
Per the Zacks analyst, Qualcomm will likely gain from solid 5G traction with greater visibility and a diverse revenue stream. Strength in snapdragon portfolio in the automotive sector is a tailwind.
SLB Likely to Gain From Increased Oilfield Service Demand
SLB anticipates another year of margin growth from increased service pricing since its overall operations see broad-based expansion. Yet, its aggressive capital budget concerns the Zacks analyst.
High Brand-Value, Expansion Efforts Aid Public Storage (PSA)
Per the Zacks Analyst, Public Storage is well-poised to benefit from its high-brand value, favorable self-storage industry fundamentals and expansion moves. However, high interest rates are worrisome.
McCormick (MKC) Benefits From CCI & GOE Saving Programs
Per the Zacks analyst, McCormick's focus on Comprehensive Continuous Improvement and Global Operating Effectiveness programs have been aiding margins and are likely to generate savings in fiscal 2023.
Healthcare MSP Aid AMN Healthcare (AMN) Amid Stiff Competition
The Zacks analyst is upbeat about AMN Healthcare's expanded portfolio serving a diverse and growing set of healthcare talent-related needs despite its operation in a highly competitive market.
Immunovant's (IMVT) Candidate Promising, Lean Pipeline A Woe
Per the Zacks Analyst, Immunovant's mid-to-late-stage studies on lead candidate batoclimab are progressing well. However, the absence of any revenue stream in the meantime is a major concern.
New Upgrades
PPG Industries (PPG) Gains on Cost Reduction & Acquisitions
Per the Zacks analyst, cost savings from restructuring actions will support the company's margins. Acquisitions including Tikkurila, Worwag and Cetelon will also contribute to its sales.
Strategic Buyouts to Underpin Allison's (ALSN) Sales
The Zacks Analyst is optimistic about the buyout of Off-Highway transmission portfolio of AVTEC that offers growth opportunities to Allison in the India Off-Highway market.
Solid Off-Premise Sales Boosts Red Robin's (RRGB) Prospects
Per the Zacks Analyst, Red Robin is likely to benefit from solid off-premise sales growth, menu innovation and strategic pricing. Also, its focus on digital initiatives bode well.
New Downgrades
Air Transport Services (ATSG) Grapples With High Fuel Costs
The Zacks analyst is worried about the escalating fuel prices as they are likely to keep the bottom line under pressure.
WestRock (WRK) Remains Troubled by Slowdown in Volumes
Per the Zacks analyst, WestRock is seeing declining in volume as customers are rebalancing their inventory and spending has been muted due to weak economic conditions.
Inflation-Led Drab Demand to Ail Hibbett's (HIBB) Performance
Per the Zacks analyst, Hibbett has been reeling under by inflation, higher interest rates and weak demand, particularly for discretionary products. These factors are likely to hurt FY24 results.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.2% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
