Tuesday, March 19, 2024

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), AbbVie Inc. (ABBV) and Salesforce, Inc. (CRM). 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 peer Visa (V) over the past year (+37.9% vs. +31.1%). The company’s numerous acquisitions are helping 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 the firm's business to expedite its shift to the digital mode.

Mastercard is well-poised to gain from steady cash-generating abilities. A strong capital position allows it to pursue acquisitions and prudently deploy capital through share buybacks and dividend payments. Mastercard also increased its quarterly dividend to 66 cents per share.

However, steep operating expenses might stress its margins. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.

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

Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (+18.5% vs. +14.3%). The company has several new drugs in its portfolio with the potential to drive the top line and make up for lost Humira revenues.

Newer products, Skyrizi and Rinvoq, are performing extremely well, bolstered by approval in new indications, which should support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. Though revenues declined in 2023, AbbVie expects to return to robust sales growth in 2025. The ImmunoGen and Cerevel (proposed) acquisitions will strengthen its pipeline.

However, the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and weakness in fillers.

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

Salesforce shares have outperformed the Zacks Computer - Software industry over the past year (+62.4% vs. +51.1%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help it tap the growing opportunities in the space.

However, stiff competition and unfavorable currency fluctuations are concerns. Also, softening IT spending amid the ongoing macroeconomic uncertainties could hurt its growth prospects.

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

Other noteworthy reports we are featuring today include Bank of America Corporation (BAC), Thermo Fisher Scientific Inc. (TMO) and Mondelez International, Inc. (MDLZ).

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>>>