Thursday, December 12, 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), The Procter & Gamble Company (PG) and Novartis AG (NVS), as well as two micro-cap stocks, IDT Corporation (IDT) and GSI Technology, Inc. (GSIT). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Mastercard shares outperformed Visa shares over the past year (+25.6% vs. +19.9%), but lagged the broader market over the same time period (+25.6% vs. +30.5%). The Zacks analyst notes that numerous acquisitions are helping Mastercard to grow addressable markets and drive new revenue streams. Mastercard expects low-teens net revenue growth in the fourth quarter of 2024. The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode.

However, steep operating expenses might stress its margins in the future. High rebates and incentives may weigh on net revenues.

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

Procter & Gamble shares have outperformed the Zacks Consumer Products - Staples industry over the past year (+14.9% vs. +10.1%). The Zacks analyst believes that the company has been gaining from a strategy that focuses on sustainability and adaptability, responding to the evolving demands of consumers and society. It has been focused on productivity and cost-saving plans to boost margins.

Yet, PG has been witnessing headwinds related to the market issues in Greater China, geopolitical tensions, and financial impacts from currency volatility.

(You can read the full research report on Procter & Gamble here >>>)

Shares of Novartis have underperformed the Zacks  Large Cap Pharmaceuticals industry over the past two years (+8.7% vs. +15.0%). Per the Zacks analyst, the loss of patent protection for some of the key drugs in Novartis’ portfolio is a concern. Gleevec/Glivec, Diovan and Exforge face continued and increasing generic competition in major markets. Novartis has continued to suffer legal setbacks in its attempt to block the entry of a generic version of its blockbuster heart drug Entresto. The company has also suffered quite a few pipeline setbacks.

However, Novartis maintains strong momentum on the back of a strong and diverse portfolio with drugs like Entresto, Kesimpta, Kisqali, Cosentyx, Pluvicto and Leqvio. The label expansion of Kisqali further fuels sales of this drug. Approval of new drugs and label expansion of existing drugs should aid.

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

IDT’s shares have outperformed the Zacks Diversified Communication Services industry over the last six months (+40.5% vs. -1.5%). The Zacks analyst believes that IDT's growth strategy centers on high-growth segments like NRS, BOSS Money, and net2phone, which are expanding in digital payments, international remittances, and cloud communications. IDT's cost controls boosted profitability. Positioned in digital and cashless payment trends, IDT leverages BOSS Money and NRS's strong merchant network.

Yet, competition and regulatory compliance pressures may impact profitability. The legacy communications segment's decline and fintech competition pose challenges for sustaining revenue growth. Other challenges include regulatory pressures, currency volatility and scaling investments.

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

GSI Tech’s shares have outperformed the Zacks Computer – Storage Devices industry over the last six months (+4.1% vs. -26.5%). The Zacks analyst believes that introduction of Gemini-I APU servers has boosted the company’s prospects. Expansion into government contracts through SBIR initiatives diversifies revenue and enhances defense sector credibility. The company's next development, Gemini-II, aims to enhance data processing efficiency, promising significant market penetration.

Yet, challenges arise from a significant drop in core SigmaQuad sales and dependency on major customers like Nokia, introducing revenue volatility. Competitive pressures in the rapidly evolving HPC market necessitate continuous innovation.

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

Other noteworthy reports we are featuring today include Sony Group Corporation (SONY), Enbridge Inc. (ENB) and Motorola Solutions, Inc. (MSI).

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>>>