Top Stock Reports for Mastercard, Home Depot & Walt Disney

Thursday, May 13, 2021

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Mastercard Inc. (MA), The Home Depot, Inc. (HD), and The Walt Disney Co. (DIS). 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 >>>

Shares of Mastercard have outperformed the Zacks Financial Transaction Services industry in the last one-year period (+28.6% vs. +16.8%). The Zacks analyst believes that the company’s several acquisitions helped it expand its addressable markets, drive new revenue streams and strengthen core product solutions.

Further, it is gaining from solid demand for digital and contactless solutions amid the COVID crisis. The company is well-poised to gain from its consistent cash-generating abilities. Strong capital position boosts investment in business.

However, steep costs might stress its margins. Its cross-border volumes will also remain suppressed due to COVID-led restrictions on travel and entertainment.

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

Shares of Home Depot have outperformed the Zacks Building Products - Retail industry in the year-to-date period (+19.4% vs. +16.4%). The Zacks analyst believes that the company outpaced the industry in year-to-date courtesy of its fundamental strength and a robust surprise trend with third straight quarter of earnings and sales beat posted in fourth-quarter fiscal 2020.

During the quarter, the company witnessed continued strong demand for home improvement projects. Also, broad-based strength across its business and geographies led to comparable sales growth.

It also gained from strong growth in its Pro and DIY customer categories. Its interconnected retail strategy and underlying technology infrastructure have helped boost web traffic in fiscal 2020. However, the company has been witnessing soft margins on higher expenses. Negative product mix and pressures from shrink and higher transportation costs have been headwinds.

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

Walt Disney shares have gained +67.9% in the last one-year period against the Zacks Media Conglomerates industry’s gain of +68.8%. The Zacks analyst believes that Disney benefits from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering as reflected by first-quarter fiscal 2021 results.

Moreover, availability in the Nordics and Latin America will help in further expanding user base. Further, reopening of California theme parks will boost top-line growth.

Nevertheless, disruptions caused by the coronavirus outbreak are expected to hurt the top line in the near term. Cruise line business remains close and its re-opened resorts are operating at a lower capacity, thereby negatively impacting top-line. Moreover, a leveraged balance sheet remains a headwind.

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

Other noteworthy reports we are featuring today include Netflix, Inc. (NFLX), Pfizer Inc. (PFE) and Medtronic plc (MDT).

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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>>>

Today's Must Read

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

Interconnected Retail Strategy Aids Home Depot's (HD) Growth

Disney (DIS) Banks on Disney+ Growth & Reopening of Parks

Featured Reports

Military Business Aids Boeing (BA), Poor Deliveries Hurt

Per the Zacks analyst, Boeing boasts $2.6 trillion market opportunity for defense and space, which in turn would bolster its growth. Yet, poor deliveries of 787 jets continue to hurt the stock.

LYFT Benefits From Improving Ride Volumes & Reduced Costs

The Zacks analyst is optimistic about the uptick in Lyft's ride volumes as coronavirus vaccinations increase in the United States.

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

Per the Zacks analyst, Netflix's robust content portfolio is driving subscriber addition that is helping to it steer away competition from Disney+, Apple TV+, Amazon prime video, HBO Max and Peacock.

Ventilator Sales Aid Medtronic (MDT) amid Procedural Delay

The Zacks analyst believes Medtronic's Respiratory Interventions business to get a boost on inflating global demand for ventilators to meet the COVID-19 patient need.

Key Brands & COVID-19 Vaccine to Drive Pfizer's (PFE) Sales

The Zacks analyst expects Pfizer's key brands like Ibrance, Inlyta and Eliquis and its COVID-19 vaccine to drive sales in 2021.

New Upgrades

Strong Liquidity and Balance Sheet Strength Boosts Suncor (SU)

The Zacks analyst believes that Suncor's strong liquidity and modest near-term debt maturities provides it financial flexibility to tap growth opportunities.

Nexeo Buyout, Productivity Actions Aid Univar (UNVR)

Per the Zacks analyst, Univar will benefit from significant synergies of the Nexeo Solutions acquisition. Its cost and productivity improvement actions should also lend support to margins.

New Downgrades

American Public (APEI) Hurt by Delay in ArmyIgniteED Portal

The temporary delay and suspension of the Army's new registration portal ArmyIgniteED is likely to weigh on American Public's second-quarter enrollment, per the Zacks analyst.

Higher Spending Amid Stiff Competition Hurts Take Two (TTWO)

Per the Zacks analyst, intense competition from the likes of EA and Activision is compelling Take Two to spend more on game development and advertising thereby keeping margins under pressure.

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Pfizer Inc. (PFE) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
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