Wednesday, April 5, 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), AstraZeneca PLC (AZN) and Philip Morris International Inc. (PM). 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 (+3.5% vs. -4.8%). Numerous acquisitions are helping the company 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.

Mastercard is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions as well as deploy capital through share buybacks and dividend payments.

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 AstraZeneca have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+29.7% vs. +17.0%). The company’s key drugs, mainly cancer medicines, Lynparza, Tagrisso and Imfinzi should keep driving revenues. Its pipeline is strong with several phase III data readouts lined up for 2023.

AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Cost-cutting efforts should drive earnings. The Alexion buyout strengthened its immunology franchise, adding several drugs that are boosting its top line.

However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales are slowing down in its key market, China.

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

Shares of Philip Morris have outperformed the Zacks Tobacco industry over the past year (+3.9% vs. -6.2%). The company has been gaining on its pricing power. Higher pricing variance was an upside to the company’s performance during the fourth quarter of 2022. During the quarter, top and bottom lines grew year over year and beat the Zacks Consensus Estimate.

Focus on reduced risk products, especially IQOS, has been working well for the company, which is witnessing a continued product mix shift from cigarettes to smoke-free products. These upsides are likely to boost organic revenues in 2023.

However, Philip Morris has been battling cost-related headwinds and expects certain margin pressures in the first half of 2023. Also, soft cigarette shipment volumes are a concern. In 2023, total international industry volume is estimated to decline by 1-2%, excluding China and the United States.

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

Other noteworthy reports we are featuring today include The Goldman Sachs Group, Inc. (GS), The TJX Companies, Inc. (TJX) and Citigroup Inc. (C).

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>>>