Friday, August 9, 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 Mastercard Incorporated (MA), Advanced Micro Devices, Inc. (AMD) and Intuit Inc. (INTU), as well as a micro-cap stock United-Guardian, Inc. (UG). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 (+14.7% vs. +11.7%). The company’s Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. It reported strong 2Q24 results thanks to resilient consumer spending and solid cross-border volumes. 

The accelerated adoption of digital and contactless solutions is providing an opportunity for the firm'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 MA to pursue acquisitions and prudently deploy capital through share buybacks and dividend payments. 

However, steep operating expenses might stress its margins. High rebates and incentives may weigh on net revenues. Also, it is overvalued than the industry at current levels. As such, the stock warrants a cautious stance.

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

Shares of AMD have gained +23.7% over the past year against the Zacks Electronics - Semiconductors industry’s gain of +46.4%. The company’s second quarter 2024 results benefited from robust Data Center and Client revenues that fully offset sluggishness in the Gaming and Embedded segments.    

Data center benefited from the solid adoption of AMD Instinct GPUs and strong growth in fourth-gen AMD EPYC CPU sales. Exiting second-quarter 2024, AMD had more than 900 public cloud instances available, with Netflix and Uber selecting fourth-gen EPYC public cloud instances. In the data center AI business, MI300 quarterly revenues exceeded $1 billion for the first time. 

Enterprise and Cloud AI customer pipeline remains robust. AMD and its partners, including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro, have instinct platforms in production. AMD expects third-quarter 2024 revenues to be $6.7 billion (+/-$300 million) representing roughly 16% year-over-year growth at mid-point.

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

Intuit shares have outperformed the Zacks Computer - Software industry over the past year (+24.8% vs. +20.7%). The company is benefiting from strong growth in revenues driven by the Online and Consumer Group business segments. Strong momentum in international online revenues and solid professional tax revenues were significant growth boosters. 

The TurboTax Live offering is also driving growth in the Consumer tax business. Momentum in QuickBooks Capital remains positive. Moreover, the company’s strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. 

Additionally, growth in the Desktop ecosystem helped the company boost its revenues. Nonetheless, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue affecting bottom-line results in the near term.

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

Shares of United-Guardian have outperformed the Zacks Medical - Products industry over the past year (+44.5% vs. +6.3%). This microcap company with market capitalization of $51.31 million reported a significant 27% year-over-year increase in first-quarter 2024 sales to $3.25 million. The improvement was driven by a 146% rise in cosmetic ingredient sales, mainly from ASI. 

United-Guardian holds a strong financial position, with $7.1 million in cash and low debt. Strategic moves include launching Natrajel for sexual wellness and discontinuing low-growth industrial products, focusing on higher-margin segments. UG’s market strength in cosmetic ingredients and medical lubricants is supported by a global customer base, with 83% of ASI's sales being international. 

Efficient supply chain and cost management further bolster operational stability, with a modest increase in operating expenses. Additionally, the company benefits from the Medicare Part D Manufacturer Discount Program, which may reduce financial burdens.

(You can read the full research report on United-Guardian here >>>)
Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), CSX Corporation (CSX) and The Bank of New York Mellon Corporation (BK).

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>>>