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Top Analyst Reports for Mastercard, Netflix & NVIDIA

Tuesday, January 23, 2018

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 (MA), Netflix (NFLX) and NVIDIA (NVDA). 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 >>>

Buy-rated Mastercard’s shares have gained +51.7% over the past year, outperforming the Zacks Financial Transaction Services industry which has gained +41.8% over the same period. The Zacks analyst likes its solid market position, ongoing expansion and digital initiatives.

Significant opportunities have arisen from the secular shift toward electronic payments. The acquisitions of VocaLink and NuData Security complement the company’s efforts to participate in new payment flows and enhance its safety and security offerings.

The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.3% upward over the last 60 days. However, it continues to face increasing costs, a volatile forex environment and legal issues. Also, higher incentives and rewards will put pressure on the bottom line.

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

Shares of Netflix have vastly outperformed the Zacks Broadcasting industry, gaining +79.4% vs. +22.9% in the past one year. Netflix fourth-quarter results benefited from content strength that helped in expanding international subscriber base. The company’s efforts to attract viewers through investing in more regional programming resulted in better-than-expected net addition of subscribers.

The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast.  The Zacks analyst thinks continuing subscriber additions and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward.

However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Rising competition is also a major concern.

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

Buy-rated NVIDIA’s shares have surged over the last year, gaining in excess of +121% versus the Zacks General Semiconductor industry’s +53.3% gain, thanks to the company’s positive record of earnings surprises in the recent quarters. The Zacks analyst thinks NVIDIA’s sustained efforts toward attaining a robust position in several emerging industries such as Artificial Intelligence (AI), deep learning and driverless cars industry have improved its growth prospects.

NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs remain the positives. The company’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors.

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

Other noteworthy reports we are featuring today include M&T Bank (MTB), Public Storage (PSA) and Valero Energy (VLO).

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Mark Vickery

Senior Editor

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>>>

Featured Reports

Business Divestments May Hamper STERIS' (STE) Top line

Per the Zacks analyst, STERIS may incur sales loss due to divested businesses in the coming quarters. Synergy Health incorporation strengthens foothold in infection prevention and sterilization space.

Hasbro's (HAS) Gaming Crate Impresses, Rising Costs a Worry

The Zacks analyst believes that Hasbro's gaming subscription service, Hasbro Gaming Crate will aid profits.

Project Investments, Cost Cuts to Aid Air Products (APD)

Per the Zacks analyst, Air Products will gain from strong project backlog and strategic investments in high-return projects.

Bullish Media Industry to Drive Omnicom's (OMC) Growth

Per the Zacks analyst, an increasing demand for media services and massive proliferation of channels is likely to drive Omnicom's future growth, despite operating risks.

Tapestry's (TPR) Multi-Brand Strategy to Aid Top-Line Growth

Per the Zacks analyst, the buyouts of Stuart Weitzman and Kate Spade mark steps to become a multi-brand entity.

Valero's (VLO) Higher Throughput Volume to Offset Debt Load

The Zacks analyst believes that improving throughput volume on higher refinery utilization will help Valero to generate more cash flow.

United Therapeutics' (UTHR) PAH Drugs to Drive Sales

Per the Zacks analyst, strong position in the PAH market with four approved products will drive strong top-and bottom-line growth.

New Upgrades

Subscriber Growth, Dividends & Buybacks Aid Sirius XM (SIRI)

The Zacks analyst appreciates the company's healthy net subscriber growth. Efforts to reward shareholders through dividends and buybacks are also encouraging.

Fortive (FTV) Benefits From Acquisitions & Cloud Growth

Per the Zacks analyst, Fortive continues to benefit from the acquisitions of eMaint Enterprises and Global Traffic that have increased Fortive's share into the rapidly-growing cloud computing market.

Rising Loans & Fee Income Boost M&T Bank's (MTB) Top-Line

Per the Zacks analyst, M&T Bank continues to gain from increasing loans balance amid an improving economy.

New Downgrades

Ameren's (AEE) Old Facilities Compromise Normal Operations

The Zacks analyst believes Ameren's aging transmission and distribution facilities can disrupt operations and expose the company to unplanned capital expenditures and operating costs.

High Self-Storage Units Supply to Hurt Public Storage (PSA)

Per the Zacks analyst, a development boom for self-storage units exists in many markets. This is likely to fuel competition for Public Storage, curb its power to raise rents and result in discounting.

Softness in Commercial Business Hurts HCA Healthcare (HCA)

Per the Zacks analyst, continued weakness in Commercial business, stemming from falling admissions, affects HCA Healthcare's top line adversely.

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Valero Energy Corporation (VLO): Free Stock Analysis Report
Public Storage (PSA): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
M&T Bank Corporation (MTB): Free Stock Analysis Report
Mastercard Incorporated (MA): Free Stock Analysis Report
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