Thursday, April 4, 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 Visa Inc. (V), The Home Depot, Inc. (HD) and Toyota Motor Corporation (TM). 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 Visa have gained +21.9% over the past year, modestly lagging the S&P 500 index's +25.4% gain and significantly underperforming rival Mastercard's +32.2% gain over the same time period. The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving its revenues. It expects net revenues to increase in low double digits for fiscal 2024.

Visa, fueled by increased payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

However, elevated operating expenses pose margin challenges. It is witnessing a declining cash volume from the Asia Pacific and CEMEA regions. Rising client incentives will affect its adjusted revenues. As such, the stock warrants a cautious stance.

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

Home Depot shares have gained +28% over the past year against the Zacks Building Products - Retail industry’s gain of +28.9%. The company has been witnessing benefits from the execution of the “One Home Depot” investment plan, which focuses on expanding supply chain facilities, technology investments and enhancement to the digital experience.

The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters. It on track with its strategic investments to build a Pro ecosystem.

However, Home Depot's top and bottom-lines declined year over year in fourth-quarter fiscal 2023. Results were impacted by a deflation in lumber and copper prices and pressures from softness in big-ticket discretionary categories, which weighed on comps.

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

Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past year (+72.2% vs. +51.1%). The Japan’s auto biggie put up a stellar show in the fiscal third quarter of 2024. A robust lineup of trucks and sport utility vehicles are set to fuel Toyota’s sales volumes.

Its electric vehicle (EV) push is a major tailwind. The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. It aims to expand global sales of BEVs to 1.5 million units in 2026. Upbeat projections for profit and revenues for fiscal 2024 spark optimism. Revenues and operating income for the current fiscal are projected to be ¥43.5 trillion and ¥4.9 trillion, indicating a year-over-year surge of 18% and 79.8%, respectively.

Toyota’s commitment to maximize shareholders value via dividends and buyback is also praiseworthy. These factors account for our bullish stance on the stock for the time being.

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

Other noteworthy reports we are featuring today include Applied Materials, Inc. (AMAT), TotalEnergies SE (TTE) and Eaton Corporation plc (ETN).

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>>>