Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Amazon, Facebook, Mastercard and Merck

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 2, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Amazon (AMZN - Free Report) , Facebook , Mastercard (MA - Free Report) and Merck (MRK - Free Report) .

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Amazon, Facebook, Mastercard & Merck

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Amazon, Facebook, Mastercard and Merck. 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 >>>

Buy-ranked Amazon’s shares have outperformed the broader market year to date by a wide margin. (the stock is up +36.7% vs. the +1.4% gain for the S&P 500 as a whole). Amazon reported third-quarter results wherein both earnings and revenues improved significantly year over year driven by strengthening retail position.

The company’s expanding physical presence and strengthening Prime program aided its momentum in the retail sector. Moreover, the rapid expansion of grocery services via Prime was a major positive throughout the quarter. Further, expanding customer base of Amazon Web Services (AWS) and its cloud offerings contributed well to the top-line growth during the reported quarter.

The Zacks analyst thinks the improving Alexa features and the growing number of device compatible with it will aid the company’s presence in the virtual assistant market. However, intensifying competition in the cloud computing market is a significant headwind. Also, heavy investment in fulfillment centers remains a concern.

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

Shares of Facebook have underperformed the S&P 500 index over the past three months, declining -13.9% vs. -4.3%. However, Facebook reported strong third-quarter 2018 results. Both earnings and revenues increased on a year-over-year basis driven by strong growth in Asia-Pacific.

Facebook stated that the developed markets are almost saturated and growth will now come from developing countries. The Zacks analyst thinks Facebook’s top-line benefits from mobile ad growth strength. Moreover, increasing effectiveness of Instagram ads is a key catalyst. Nevertheless, aggressive investments for the initiatives related to improving ad transparency, removal of fake accounts and curbing fake news is expected to hurt profitability in the near term.

Further, the company is expected to lose some ad impression opportunities due to its focus on growth of Stories on the core Facebook app. This is expected to negatively impact top-line growth.

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

Buy-ranked Mastercard’s shares have increased +33.3% over the past year, outperforming the Zacks Financial Transaction Services industry’s rally of +18.6%. Mastercard’s earnings beat expectations and increased year over year.

Better-than-expected results were primarily backed by higher switched transactions, increase in cross-border volume and gross dollar volume as well as gains from acquisitions. An increase in year-over-year rebates and incentives was a partial dampener.

The Zacks analyst thinks the company is poised for growth, given its solid market position, ongoing expansion and digital initiatives plus significant opportunities from the secular shift toward electronic payments. Its numerous acquisitions are aiding revenue growth. However, escalating costs, higher incentives and rewards will put pressure on the company’s bottom line.

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

Shares of Buy-ranked Merck have gained +30.8% year to date, significantly outperforming the Zacks Large Cap Pharmaceuticals industry, which has gained +4.1% over the same period. Merck beat estimates for earnings while missing the same for sales in Q3.

The Zacks analyst thinks new products like Keytruda, Lynparza, and Bridion are contributing meaningfully to the top line. Keytruda sales are gaining momentum with approval for additional indications, especially in the first-line lung cancer positioning as it is the only anti-PD-1 approved in this setting. Animal health and vaccine products are also performing strongly and remain core growth drivers for Merck.

Merck will continue to focus on cost-cutting initiatives to drive the bottom line. However, generic competition for several drugs and pricing pressure will continue to be overhangs on the top line. Rising competitive pressure on the diabetes franchise and products like Isentress (HIV), Zepatier (HCV) and Zostavax (vaccine) remains a concern.

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

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Amazon.com, Inc. (AMZN) - free report >>

Mastercard Incorporated (MA) - free report >>

Merck & Co., Inc. (MRK) - free report >>

Published in