Tuesday, September 12, 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), SAP SE (SAP) and Texas Instruments Incorporated (TXN). 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 year-to-date period (+20.4% vs. +16.3%). The company’s numerous acquisitions are helping 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 dividend payments.

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 SAP have outperformed the Zacks Computer - Software industry over the past year (+64.1% vs. +38.9%). The company’s performance is benefiting from continued strength in its cloud business (especially the new Rise with SAP solution) across all regions. Momentum in SAP’s business technology platform particularly the S/4HANA solution along with opportunities presented by proliferation of generative AI bode well.

SAP’s restructuring plan is expected to align its go-to-market approach with its accelerated cloud transformation. Frequent product launches like Grow with SAP, and strategic acquisitions and collaborations are other tailwinds.

However, the company’s performance is affected by continued softness in the Software license and support business segment coupled with global macroeconomic weakness and geopolitical instability. Also, increasing research & development costs, and stiff competition in the cloud space are concerns.

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

Shares of Texas Instruments have gained +2.6% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +124.4%. The company is benefiting from solid momentum across its Embedded Processing segment. Growing demand for embedded technologies across the automotive and industrial markets is contributing well.

Additionally, continuous improvement in the automotive market is a tailwind. According to the Zacks analyst the company’s growing investments in new growth avenues and competitive advantages remain tailwinds. Further, its portfolio of long-lived products and efficient manufacturing strategies are other positives.

However, sluggishness in the Analog segment remains a concern. Further, weakening momentum across enterprise systems and communication equipment end-markets is a negative. Additionally, weak demand environment and imposition of new export regulations are headwinds.

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

Other noteworthy reports we are featuring today include Morgan Stanley (MS), Bristol-Myers Squibb Company (BMY) and AT&T Inc. (T).

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>>>