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The Zacks Analyst Blog Highlights: Mastercard Inc., Pfizer Inc. and Citigroup Inc
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For Immediate Release
Chicago, IL – January 26, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Mastercard Inc. (MA - Free Report) , Pfizer Inc. (PFE - Free Report) and Citigroup Inc. (C - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Earnings Season Scorecard and Analyst Reports for Matercard, Pfizer and Citigroup
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q4 earnings season, in addition to new research reports on 12 major stocks, including Mastercard Inc., Pfizer Inc., and Citigroup Inc.. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Q4 Earnings Season Scorecard (as of Tuesday, January 25th)
Including all of this morning's earnings releases, we now have Q4 results from 79 S&P 500 members or 15.8% of the index's total membership. Total earnings for these 79 companies are up +21.9% from the same period last year on +11.3% higher revenues, with 84.8% beating EPS estimates and 78.5% beating revenue estimates.
The Q4 EPS and revenue beats percentages are within historical ranges, though below what we had seen from the same group of companies in the first three quarters of the year.
The revisions trend for current (2022 Q1) and coming quarters appears to have turned positive after modestly turning negative in the comparable period to the preceding earnings season.
It will be a notable positive for the market if this favorable turn on the revisions front continues through the rest of this earnings season.
Today's Featured Research Reports
Shares of Mastercard have outperformed the Zacks Financial Transaction Services industry over the past year (+6.6% vs. -24.4%). The Zacks analyst believes that Mastercard's profit levels are rising thanks to higher consumer spending. It executed several acquisitions, which helped to grow its addressable markets and drive new revenue streams.
Deal wins, renewed agreements and an expanded service suite are expected to aid long-term growth. The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. This provides an opportunity for Mastercard's business to expedite its shift to digital mode.
However, steep costs might stress margins. High rebates and incentives may weigh on revenues. As such, the stock warrants a cautious stance.
Shares of Pfizer have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+38.2% vs. +8.1%). The Consumer Healthcare joint venture with Glaxo and the merger of the Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.
The Zacks analyst, however, believes that the smaller Pfizer should see better revenue growth. Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales. Its COVID-19 vaccine has become a key contributor to the top line. The approval of Paxlovid, its oral antiviral pill for COVID, can bring in additional revenues in 2022.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth prospects due to competitive pressure.
Shares of Citigroup have underperformed the Zacks Banks - Major Regional industry over the past year (+2.9% vs. +29.3%). However, Citigroup’s fourth-quarter 2021 results were driven by revenue and loan growth, while escalating expenses were concerning. Nonetheless, the company has an impressive earnings surprise history, having beaten the Zacks Consensus Estimate in the trailing four quarters.
The Zacks analyst believes that exiting the consumer banking business in announced markets will simplify operations and release $12 billion of allocated tangible common equity that can be deployed to expand institutional franchises in targeted regions. Recently, the bank revealed plans to exit the consumer, small business and middle-market banking operations in Mexico.
Meanwhile, high expenses on transformation investments and regulatory costs might limit bottom-line growth. The subdued consumer banking business might dent fee income.
Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI) and CSX Corp. (CSX).
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Mastercard Inc., Pfizer Inc. and Citigroup Inc
For Immediate Release
Chicago, IL – January 26, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Mastercard Inc. (MA - Free Report) , Pfizer Inc. (PFE - Free Report) and Citigroup Inc. (C - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Earnings Season Scorecard and Analyst Reports for Matercard, Pfizer and Citigroup
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time update on the ongoing Q4 earnings season, in addition to new research reports on 12 major stocks, including Mastercard Inc., Pfizer Inc., and Citigroup Inc.. 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 >>>
Q4 Earnings Season Scorecard (as of Tuesday, January 25th)
Including all of this morning's earnings releases, we now have Q4 results from 79 S&P 500 members or 15.8% of the index's total membership. Total earnings for these 79 companies are up +21.9% from the same period last year on +11.3% higher revenues, with 84.8% beating EPS estimates and 78.5% beating revenue estimates.
The Q4 EPS and revenue beats percentages are within historical ranges, though below what we had seen from the same group of companies in the first three quarters of the year.
The revisions trend for current (2022 Q1) and coming quarters appears to have turned positive after modestly turning negative in the comparable period to the preceding earnings season.
It will be a notable positive for the market if this favorable turn on the revisions front continues through the rest of this earnings season.
Today's Featured Research Reports
Shares of Mastercard have outperformed the Zacks Financial Transaction Services industry over the past year (+6.6% vs. -24.4%). The Zacks analyst believes that Mastercard's profit levels are rising thanks to higher consumer spending. It executed several acquisitions, which helped to grow its addressable markets and drive new revenue streams.
Deal wins, renewed agreements and an expanded service suite are expected to aid long-term growth. The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. This provides an opportunity for Mastercard's business to expedite its shift to digital mode.
However, steep costs might stress margins. High rebates and incentives may weigh on revenues. As such, the stock warrants a cautious stance.
(You can read the full research report on Mastercard here >>>)
Shares of Pfizer have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+38.2% vs. +8.1%). The Consumer Healthcare joint venture with Glaxo and the merger of the Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines.
The Zacks analyst, however, believes that the smaller Pfizer should see better revenue growth. Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales. Its COVID-19 vaccine has become a key contributor to the top line. The approval of Paxlovid, its oral antiviral pill for COVID, can bring in additional revenues in 2022.
However, currency headwinds and pricing pressure are key top-line headwinds. Concerns remain about its long-term growth prospects due to competitive pressure.
(You can read the full research report on Pfizer here >>>)
Shares of Citigroup have underperformed the Zacks Banks - Major Regional industry over the past year (+2.9% vs. +29.3%). However, Citigroup’s fourth-quarter 2021 results were driven by revenue and loan growth, while escalating expenses were concerning. Nonetheless, the company has an impressive earnings surprise history, having beaten the Zacks Consensus Estimate in the trailing four quarters.
The Zacks analyst believes that exiting the consumer banking business in announced markets will simplify operations and release $12 billion of allocated tangible common equity that can be deployed to expand institutional franchises in targeted regions. Recently, the bank revealed plans to exit the consumer, small business and middle-market banking operations in Mexico.
Meanwhile, high expenses on transformation investments and regulatory costs might limit bottom-line growth. The subdued consumer banking business might dent fee income.
(You can read the full research report on Citigroup here >>>)
Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI) and CSX Corp. (CSX).
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.