Monday, May 8, 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), The Coca-Cola Company (KO) and T-Mobile US, Inc. (TMUS). 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 (+18.0% vs. +10.2%). Company’s numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. We expect the company's top line at $25.2 billion in 2023. 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 is well-poised to gain from steady cash-generating abilities. A strong capital position allows it to pursue acquisitions and prudently deploy capital.

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 Coca-Cola have gained +1.4% over the year-to-date period against the Zacks Beverages - Soft drinks industry’s gain of +10.3%. The company’s earnings and sales improved year over year and surpassed the Zacks analyst estimates in the quarter. KO’s results benefited from the continued momentum in its business.

Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments. It provided an upbeat guidance for 2023.

However, shares of Coca-Cola lagged the industry in the past three months. Pressures from higher supply chain costs, higher marketing spends and currency headwinds are concerning.

(You can read the full research report on Coca-Cola here >>>)

Shares of T-Mobile US have outperformed the Zacks Wireless National industry over the past year (+18.0% vs. -4.8%). With industry-leading growth in postpaid and broadband customers driven by superior 5G network and focus on customers, T-Mobile reported solid first-quarter 2023 results driven by diligent execution of operational plans.

The company has augmented its 5G footprint by introducing 5G Home Internet services in several states. T-Mobile plans to reach 300 million people within 2023. It intends to bring more competition to home broadband, especially in underserved rural markets.

However, T-Mobile operates in a fiercely competitive and almost saturated U.S. telecom market, which lowers its growth potential to some extent. Several promotional activities to lure additional customers are further eroding profitability. Lower equipment revenues due to a challenging macroeconomic environment remain a concern. Debt obligation woes also persist.

(You can read the full research report on T-Mobile US here >>>)

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Northrop Grumman Corporation (NOC) and EOG Resources, Inc. (EOG).

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>>>