Thursday, July 6, 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), Oracle Corporation (ORCL) and Adobe Inc. (ADBE). 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 year (+24.0% vs. +12.9%). Company’s numerous acquisitions are helping the it to grow 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.

It is well-poised to gain from steady cash-generating abilities. A strong capital position allows it to pursue acquisitions and prudently deploy capital via share buybacks and dividends.

However, steep operating expenses might stress margins. High rebates and incentives may weigh on the company's 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 Oracle have outperformed the Zacks Computer - Software industry over the past year (+64.7% vs. +29.9%). The company is benefiting from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure services and Autonomous Database offerings.

Solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP bodes well. Oracle’s Gen 2 Cloud is delivering better performance at a lower cost due to high bandwidth and low-latency RDMA networks. Partnerships with NVIDIA and Microsoft benefits Oracle.

Oracle is partnering with NVIDIA to build the world's largest high-performance computer, an AI computer, with 16,000 GPUs. The company also announced that it is launching a generative AI cloud service for enterprise customers. However, stiff competition is hurting growth.

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

Shares of Adobe have outperformed the Zacks Computer - Software industry over the past six months (+42.5% vs. +42.0%). The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products drove the top-line growth. Rising subscription revenues and solid momentum across the mobile apps were major positives.

Growth in emerging markets, robust online video creation demand and solid adoption of Acrobat are tailwinds. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, strategic acquisitions and solid adoption of cloud applications.

However, the ongoing tensions between Russia and Ukraine remain major headwinds for Digital Media segment. High acquisition expenses do not bode well for its margin expansion.

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

Other noteworthy reports we are featuring today include Accenture plc (ACN), QUALCOMM Incorporated (QCOM) and Schlumberger Limited (SLB).

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>>>