Top Stock Reports for Visa, Home Depot & Toyota Motor

Thursday, April 4, 2024

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 Visa Inc. (V), The Home Depot, Inc. (HD) and Toyota Motor Corporation (TM). 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 >>>

Shares of Visa have gained +21.9% over the past year, modestly lagging the S&P 500 index's +25.4% gain and significantly underperforming rival Mastercard's +32.2% gain over the same time period. The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving its revenues. It expects net revenues to increase in low double digits for fiscal 2024.

Visa, fueled by increased payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

However, elevated operating expenses pose margin challenges. It is witnessing a declining cash volume from the Asia Pacific and CEMEA regions. Rising client incentives will affect its adjusted revenues. As such, the stock warrants a cautious stance.

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

Home Depot shares have gained +28% over the past year against the Zacks Building Products - Retail industry’s gain of +28.9%. The company has been witnessing benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. It on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in fourth-quarter fiscal 2023. Results were impacted by a deflation in lumber and copper prices and pressures from softness in big-ticket discretionary categories, which weighed on comps.

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

Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past year (+72.2% vs. +51.1%). The Japan’s auto biggie put up a stellar show in the fiscal third quarter of 2024. A robust lineup of trucks and sport utility vehicles are set to fuel Toyota’s sales volumes.

Its electric vehicle (EV) push is a major tailwind. The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. It aims to expand global sales of BEVs to 1.5 million units in 2026. Upbeat projections for profit and revenues for fiscal 2024 spark optimism. Revenues and operating income for the current fiscal are projected to be ¥43.5 trillion and ¥4.9 trillion, indicating a year-over-year surge of 18% and 79.8%, respectively.

Toyota’s commitment to maximize shareholders value via dividends and buyback is also praiseworthy. These factors account for our bullish stance on the stock for the time being.

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

Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), TotalEnergies SE (TTE) and Eaton Corporation plc (ETN).

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

Visa (V) Rides on Increasing Payments Volume, Expenses High

Home Depot's (HD) Interconnected Strategy to Boost Sales

Continued Demand & Electric Push to Benefit Toyota (TM)

Featured Reports

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.

New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 175 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Quanta (PWR) Banks on Solid Backlog Amid Intense Competition
Per the Zacks analyst, infrastructure investment on energy transition, technological advancements, and initiatives focused on grid resilience and security benefit Quanta. Yet, intense competition ails

Ayvakit Sales Boosts Blueprint (BPMC), High Dependence a Woe
Per the Zacks Analyst, BPMC is witnessing increased growth in Ayvakit sales, following label expansion in the U.S. and EU markets. However, high dependency on Ayvakit for revenue generation is a woe.

High Gold Prices, Mine Performances to Drive B2Gold (BTG)
Per the Zacks analyst, a pickup in mine performances along with the company's ongoing growth strategies will drive B2Gold's results. The rise in gold prices will also boost results.

SkyWest (SKYW) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is helping SkyWest carry more passengers and witness more revenues.

Expansion Efforts Aid OUTFRONT Media (OUT), Expenses High
Per the Zacks Analyst, OUTFRONT Media's diversified advertising sites and strategic investments for digital-billboard portfolio bode well, despite elevated expenses and high interest rates.

New Upgrades

Applied Materials (AMAT) Rides on Strength in AGS Segment
Per the Zacks analyst, solid adoption of 200-mm systems and strengthening subscription business are benefiting Applied Materials Applied Global Services (AGS) segment.

Solid Demand for AI Servers Aids Dell Technologies (DELL)
Per the Zacks analyst, Dell is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications.

Sunoco (SUN) Continues to Gain From Rising Gasoline Demand
The Zacks analyst likes Sunoco since it is a leading distributor of motor fuel and, hence, is well-positioned to gain from increasing gasoline demand.

New Downgrades

Bandwidth's (BAND) Margins Marred by Sino-US Trade Spat
Per the Zacks analyst, Bandwidth is likely to be plagued by latent Sino-US geopolitical tensions relating to the trade restrictions imposed on the sale of communication equipment to China-based firms.

Wolverine World Wide (WWW) Troubled by Soft DTC Revenues
Per the Zacks analyst, Wolverine remains troubled by a tough trading environment, which has been impacting its direct-to-consumer channel. The company's DTC revenues fell 17.6% in the fourth quarter.

Rising costs and Stiff Rivalry Impede Envista' (NVST) Growth
The Zacks analyst is worried about Envista facing challenging macroeconomic conditions resulting in a significant escalation in its costs and expenses. Stiff rivalry remains a concern.

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Visa Inc. (V) : Free Stock Analysis Report

Toyota Motor Corporation (TM) : Free Stock Analysis Report

Eaton Corporation, PLC (ETN) : Free Stock Analysis Report

The Home Depot, Inc. (HD) : Free Stock Analysis Report

Applied Materials, Inc. (AMAT) : Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : 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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