Wednesday, October 20, 2021

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 Microsoft Corporation (MSFT), Mastercard Incorporated (MA), and Pfizer Inc. (PFE). 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 Microsoft have outperformed the S&P 500 in the year to date period (+39.1% vs. +22.7%). The Zacks analyst believes that the enterprise refresh cycle, new subscription model, as well as strength in Teams and Gaming segment is likely to continue generating sizeable cash flows for the company.

Microsoft’s performance is driven by strength in its Azure cloud amid accelerated global digital transformation. The company is also witnessing growth in user base of Microsoft 365 suite and Dynamics. Softness in the core computing market, increasing costs related to Azure enhancements amid intensifying competition in the cloud are the major headwinds though.

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

Mastercard shares have gained +7.6% over the past year against the Zacks Financial Transaction Services industry’s decline of -3.5%. The Zacks analyst believes that strategic acquisitions, technology upgrades, product-diversification efforts and geographic-expansion initiatives are some of the major catalysts for growth.

The company’s efforts to expedite its shift to the digital mode to address the greater adoption of digital and contactless solutions bodes well. It is poised to gain from its steady cash-generating abilities. A strong capital position not only enables the company to pursue acquisitions but also prudently deploy capital. Higher expenses, high rebates and incentives might stress the company's margins though.

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

Shares of Pfizer have gained +10.7% over the past six months against the Zacks Large-Cap Pharmaceuticals industry’s gain of +7.5%. The Zacks analyst believes that strong growth of key brands like Ibrance, Inlyta and Eliquis to drive sales.

Its COVID-19 vaccine candidate is now approved for emergency use in several countries and has been contributing immensely to the top line growth. Currency headwinds and pricing pressure, however, are key top-line headwinds. High profile pipeline failures in the central nervous system category including insomnia drug Indiplon and antipsychotic asenapine are an added concern.

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

Other noteworthy reports we are featuring today include PepsiCo, Inc. (PEP), Chevron Corporation (CVX) and Merck & Co., Inc. (MRK).

Sheraz Mian

Director of Research

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>>>