Tuesday, February 28, 2023

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 Incorporated (MA), Raytheon Technologies Corporation (RTX) and BP p.l.c. (BP). 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’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+3.2% vs. -2.3%). The company’s numerous acquisitions are helping it to grow in addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the adoption of digital and contactless solutions, providing an opportunity for MA's business to expedite its shift to the digital mode.

Mastercard’s growing footprint in the crypto universe can position it for long-term growth. It is well-poised to gain from steady cash-generating abilities. A strong capital position allows MA to pursue acquisitions and deploy capital.

However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. Its dividend yield is still lower than the industry average. As such, the stock warrants a cautious stance.

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

Shares of Raytheon Technologies have gained +7.6% over the past six months against the Zacks Aerospace - Defense Equipment industry’s gain of +10.6%. The company continues to receive ample orders for its combat-proven defense products. A steady recovery in commercial air traffic continues to boost commercial OEM as well as commercial aftermarket sales for Raytheon. The stock holds a solid solvency position.

However, economic sanctions imposed by governments in response to Russia’s invasion of Ukraine might hurt Raytheon. A comparative analysis of its trailing 12-month Price/Book ratio indicates a relatively gloomy picture, which might be a cause for investors’ concern. The appreciating U.S. dollar has been burdening airlines, which may hurt the stock.

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

BP’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+41.1% vs. +20.2%). The company has a strong portfolio of upstream projects, backing impressive production growth. It boasted that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key projects was met successfully.

BP set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. Although there is no production from its Russia incorporated joint ventures, BP is projecting higher upstream volumes this year. Before reporting its December-quarter results, the energy major is willing to complete an additional $2.5 billion in share buy-backs.

However, the leading integrated energy company’s balance sheet is considerably more levered than most peers, limiting its financial flexibility. Also, increasing production & manufacturing costs have been affecting the company's income.

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

Other noteworthy reports we are featuring today include CVS Health Corporation (CVS), ICICI Bank Limited (IBN) and Uber Technologies, Inc. (UBER).

Director of Research

Sheraz Mian

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>>>