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Top Stock Reports for Mastercard, NVIDIA & Costco

Sheraz Mian
·6-min read

Friday, March 5, 2021

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 (MA), NVIDIA (NVDA) and Costco Wholesale (COST). 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 (+23.9% vs. +11.6%). The Zacks analyst believes that the company is gaining from solid demand for digital and contactless solutions amid the COVID crisis.

Investment in technology keeps Mastercard at the forefront of the rapidly-evolving payments industry.  The company is well poised to gain from consistent cash generating abilities from operations. Its strong capital position drives investment in business and shareholder value addition.

The company's earnings of $1.64 per share beat the Zacks Consensus Estimate by 8.6% but the same declined 16% year over year due to weak cross-border business. However, steep costs might stress margins. The company's cross-border volumes will remain suppressed due to COVID-led restriction on travel and entertainment.

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

Shares of NVIDIA have lost -2.5% in the last six months against the Zacks General Semiconductor industry’s gain of +9.8%. The Zacks analyst believes that NVIDIA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave.

It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive user base.

Additionally, collaboration with Daimler-owned Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. However, management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.

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

Costco’s shares have lost -16.5% over the past three months against the Zacks Discount Retail industry’s loss of -7.8%. The Zacks analyst believes that Costco has been benefiting from the coronavirus-induced spike in demand due to its status of an essential retailer.

The company’s growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. Cumulatively, these factors have been aiding in registering impressive sales and earnings numbers.

Costco put up a decent performance in second-quarter fiscal 2021, wherein both the top and the bottom lines grew year over year. However, margins still remain an area to watch. Any deleverage in SG&A rate as well incremental wages and sanitation costs cannot be ignored.

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

Other noteworthy reports we are featuring today include The Walt Disney Company (DIS), Bristol-Myers Squibb (BMY) and PetroChina (PTR).

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Sheraz Mian

Director of Research

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>>>

Today's Must Read

Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)

Strong GPU Adoption in Gaming, Datacenter Aids NVIDIA (NVDA)

Decent Comps Run to Fuel Costco's (COST) Sales, Cost a Concern

Featured Reports

Disney+ Drives Disney (DIS) Amid Coronavirus-Led Disruption

Per the Zacks analyst, growing popularity of Disney+ makes it a key catalyst for Disney's growth prospects amid disruptions caused by the coronavirus outbreak.

Revlimid, Eliquis Fuel Bristol-Myers (BMY) As Opdivo Weakens

Per the Zacks analyst, Eliquis and Revlimid fuel Bristol-Myers as Opdivo faces competitive pressure.

Upstream Unit Buoys PetroChina (PTR) Amid Weak Refined Margin

The Zacks analyst believes oil production growth and lower lifting costs should aid PetroChina's upstream unit outlook but is worried over the lower refined products margins.

Core MedSurg Unit Aids Stryker (SYK), Pricing Pressure Ails

Per the Zacks analyst, Stryker continues to gain from solid prospects of its core MedSurg arm. However, pricing pressure continues to remain a woe.

S&P Global (SPGI) Backed By Cash Balance Amid Peer Pressure

The Zacks analyst is impressed by S&P Global's cash and cash equivalent position, which is now higher than total debt.

Loan Growth Supports U.S. Bancorp (USB), Higher Costs a Woe

The Zacks Analyst believes that solid business model and initiatives to expand market share have helped U.S. Bancorp witness growth in loan and deposits.

Blackstone (BX) Poised for Asset Growth Driven by Inflows

Per the Zacks analyst, continued net inflows will keep aiding Blackstone's assets under management. Its diversified products and superiority in the alternative investments space will support top line.

New Upgrades

Liquidity, Superior Debt Profile to Aid HollyFrontier (HFC)

The Zacks analyst likes HollyFrontier's ample liquidity with $1.4 billion in cash and an undrawn $1.35 billion revolving credit facility. Further, the company's earliest debt maturity is in 2026.

Strong Demand & Product Innovation to Benefit iRobot (IRBT)

Per the Zacks analyst, iRobot Corporation's strong product innovation capabilities along with robust demand for its Roomba and Braava products will continue to lend momentum to the company.

PBF Energy's (PBF) Cost-Saving Efforts to Boost Profits

Per the Zacks analyst, PBF Energy's East Coast refining reconfiguration and other favorable moves are likely to result in massive cost savings. Also, its complex refineries are advantageous.

New Downgrades

Soft Advertising Trend to Hurt New York Times (NYT) Top Line

Per the Zacks analyst, soft advertising revenue, primarily the print, is likely to hurt The New York Times Company. First-quarter 2021 advertising revenue is projected to decline in the high-teens.

B&G Foods (BGS) Troubled by Increased COVID-19 & Input Costs

Per the Zacks analyst, B&G Foods is seeing high COVID-19 costs, which came in at $4.3 million in fourth quarter.

Ironwood's (IRWD) Sole Drug Linzess Face Rising Competition

Per the Zacks analyst, Ironwood's dependence on sole marketed drug Linzess is a concern amid rising competition in the targeted segment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PetroChina Company Limited (PTR) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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