Wednesday, October 19, 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), CrowdStrike Holdings, Inc. (CRWD) and Eni S.p.A. (E). 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 declined -16.8% over the past year against Visa's (V) -19.6% decline and the S&P 500 index's -19% pullback.

Helping the stock hold up better are numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. Our estimates suggest revenues for 2022 to rise 17.9% from the 2021 levels. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for Mastercard's business to expedite its shift to the digital mode.

Its focus on the Southeast Asia and LatAm markets is expected to intensify. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital.

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

CrowdStrike shares have declined -44.7% over the past year against the Zacks Internet - Software industry’s decline of -64.9%. The company is facing intensifying competition in the security application market remains a concern. Also, elevated selling & marketing and research & development spends remain overhangs on the margins.

However, CrowdStrike is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and increasing necessity for security and networking products amid the growing hybrid working trend. Continued digital transformation and cloud-migration strategies adopted by organizations are key growth drivers.

Its portfolio strength, is mainly the Falcon platform’s 10 cloud modules which boosts its competitive edge and helps add users. Additionally, strategic acquisitions like that of Humio and Preempt, are expected to drive growth for the company. According to the Zacks analyst revenue estimates for CrowdStrike suggests CAGR of 42.2% through fiscal 2023-2025.

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

Eni shares have underperformed the Zacks Oil and Gas - Integrated - International industry over the past year (-19.9% vs. +27.9%). The company’s balance sheet has more debt exposure compared with the composite stocks belonging to the industry. Also, it has been witnessing a year-over-year decline in oil and gas production volumes for the past few quarters. As such, the stock warrants a cautious stance.

Nevertheless, its constant efforts to expand its upstream operations will go a long way in generating growth. With discovery of huge oil resources this year, the firm’s production outlook seems bright. Eni made multiple discoveries in Egypt’s Meleiha concession.

With the discoveries, Eni adds 8,500 barrels of oil equivalent per day to its overall production. Moreover, the company expects to discover new exploration resources of around 700 million boe this year. Also, Eni increased its share buyback program by €1.3 billion to an annual total of €2.4 billion.

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

Other noteworthy reports we are featuring today include PepsiCo, Inc. (PEP), SAP SE (SAP) and The Kroger Co. (KR).

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>>>