Thursday, February 15, 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), SAP SE (SAP) and CrowdStrike Holdings, Inc. (CRWD). 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 (+28% vs. +19.7%) as well as rival Visa (28% vs. +24.1%) over the past year . 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. It 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.

However, steep operating expenses might stress 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 SAP have outperformed the Zacks Computer - Software industry over the past six months (+29.1% vs. +25.1%). The company’s performance is benefiting from continued strength in its cloud business, especially the Rise with SAP and Grow with SAP solutions. Momentum in SAP’s business technology platform, particularly the S/4HANA solution, along with proliferation of generative AI bodes well.

SAP is now focusing more on vital strategic growth areas, especially Business AI, and position the company for future growth. Management also reaffirmed its 2025 long-term targets for cloud and total revenues. Frequent product launches, and strategic acquisitions and collaborations are other tailwinds.

However, continued softness in the Software license and support business segment coupled with global macroeconomic weakness are concerning. Increasing costs and stiff competition are additional headwinds.

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

CrowdStrike shares have outperformed the Zacks Internet - Software industry over the past year (+190.6% vs. +69.9%). The company benefits from the rising demand for cyber-security solutions due to a slew of data breaches and the increasing need for security and networking products amid the growing hybrid working trend.

Continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. The company’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users.

Additionally, strategic acquisitions, such as Bionic and Reposify, are expected to fuel growth. However, intensifying competition in the security application market is a concern. Elevated selling & marketing and research & development spends remain overhangs on margins.

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

Other noteworthy reports we are featuring today include Eli Lilly and Company (LLY), Republic Services, Inc. (RSG) and AMETEK, Inc. (AME).

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>>>