The Zacks Analyst Blog Highlights Mastercard, Cisco, PayPal, Vertex Pharmaceuticals and ICICI Bank

MA CSCO VRTX IBN PYPL

For Immediate Release

Chicago, IL – August 23, 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) , Cisco Systems, Inc. (CSCO - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) , Vertex Pharmaceuticals Inc. (VRTX - Free Report) and ICICI Bank Ltd. (IBN - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for Mastercard, Cisco and PayPal

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 Inc. (MA - Free Report) , Cisco Systems, Inc. (CSCO - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) . 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 three-month period (+1.7% vs. +0.9%). The Zacks analyst believes that the company’s profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams.

The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard's business to expedite its shift to digital mode.

The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital. However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues.

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

Cisco shares have declined -23.0% over the year-to-date period against the Zacks Computer - Networking industry’s decline of -23.2%. The Zacks analyst believes that Cisco is suffering from the disruptions caused by the war in Ukraine and COVID related lockdowns in China. The lockdowns resulted in severe shortages of components that hurt Cisco’s ability to ship products to customers.

Management cautioned that component shortages and ongoing supply chain issues are expected to persist in the rest of fiscal 2022 and bump up costs. This is likely to dent revenues and margin expansion. 

Nevertheless, Cisco’s performance is expected to benefit from strength in its product portfolio, customer segments and momentum in product order growth. It is benefiting from healthy uptake of identity and access, advanced threat and unified threat management security solutions amid high growth in Internet traffic. The buyout of Acacia Communications bodes well for the long haul.

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

PayPal shares have underperformed the Zacks Internet - Software industry over the year-to-date period (-48.8% vs. -46.7%). The Zacks analyst believes that intensifying competition in the digital payment market poses a serious risk to the company’s market position. Further, sluggishness in the international market is a concern. Foreign exchange headwinds remain risks.

Nonetheless, the company’s second quarter results were driven by strong growth in total payments volume owing to increasing net new active accounts. Strengthening customer engagement was a positive. Also, strong performance by Venmo contributed well to the TPV growth. We believe growing transaction revenues are likely to continue driving the top-line growth.

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

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Inc. (VRTX - Free Report) and ICICI Bank Ltd. (IBN - Free Report) .

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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.

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