November 23, 2020

Top Analyst Reports for Mastercard, JPMorgan & Eli Lilly

Friday, October 9, 2020

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), JPMorgan Chase (JPM) and Eli Lilly (LLY). 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 in the year to date period (+17.4% vs. +5.5%). The Zacks analyst believes that Mastercard’s strategic acquisitions, alliances and technology upgrades, along with product-diversification and geographic-expansion initiatives augur well for the long-term.

The company has undertaken several acquisitions to supplement organic efforts and diversify revenues over the years, which has helped expand its addressable markets and strengthen core product solutions. It is gaining from an increased demand for digital and contactless solutions owing to the COVID crisis.

Investment in technology keeps it at the forefront of the rapidly-evolving payments industry. It is also witnessing buoyant demand for its Data & Analytics and Cyber solutions. However, escalating costs might put pressure on the company’s margins. It also cancelled its annual 2020 outlook for net revenues and operating expense due to coronavirus-induced losses.

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

JPMorgan shares have outperformed other money-center banks latey, but the stocks continue to lag the broader market as investors remain focused on the tough operating environment for banks characterized by low interest rates and cyclical pressures. These headwinds notwithstanding, the Zacks analyst is optimistic about JPMorgan’s long-term prospects ahead of its quarterly report next week on the back of branch openings in new regions, acquisition of InstaMed, reversal in mortgage banking business and focus on credit card operation.

Additionally, the company has kept the dividend level unchanged currently, following the clearance of annual stress test results. However, the Fed’s accommodative policy and near-zero rates are expected to hurt the bank’s interest income and margins.

Further, coronavirus-induced economic downturn will likely continue to hamper business activities. Thus, loan growth will likely be muted in the near term.

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

Eli Lilly shares have gained +7.3% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of +6.5%. The Zacks analyst believes that generic competition for several drugs, rising pricing pressure in the United States, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds for the company.

Lilly expects revenue growth to be driven by higher demand for its growth drugs like Trulicity, Taltz, and others and from product launches in diabetes, autoimmune diseases and cancer. Lilly is making significant pipeline progress including its efforts to make therapies to treat COVID-19.

Though new prescription volume of several medicines declined in Q2 due to COVID-19, the trends are expected to improve in the second half. Estimates have gone up ahead of Q3 results. Lilly has a positive record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include Bristol-Myers Squibb (BMY), Caterpillar (CAT) and Anthem (ANTM).

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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

Revenue Growth, Solid Balance Sheet Aid Mastercard (MA)

Branch Expansion Efforts Aid JPMorgan (JPM) Amid Low Rates

Eli Lilly (LLY) Makes Significant Pipeline Progress

Featured Reports

Opdivo, Eliquis Fuel Bristol-Myers (BMY) Amid Competition

Per the Zacks analyst, label expansion of blockbuster drug Opdivo should maintain momentum for Bristol-Myers amid stiff competition. Moreover, Eliquis and Revlimid further propel the top-line.

Caterpillar (CAT) Rides on Cost Control Amid Weak Demand

Per the Zacks analyst, Caterpillar’s focus on cutting down costs will help sustain margins despite the weak demand owing to the impact of the coronavirus pandemic.

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.

ADP Rides on Strategic Buyouts Amid Technological Challenges

The Zacks analyst believes that acquisitions help ADP strengthen its position in the HCM market.

Expanding Cloud Portfolio & Partner Base Aids VMWare (VMW)

Per the Zacks analyst, VMware is benefiting from strong demand for its expanding cloud-based solutions, strong partner base, and Carbon Black & Pivotal acquisitions.

Dollar General’s (DG) Sturdy Comps Run to Propel Top-Line

Per the Zacks analyst, better price management, merchandise efforts, operational initiatives, and coronavirus-led demand spike should drive sales.

Regulated Investments & Cost Management Aid Exelon (EXC)

Per the Zacks analyst, Exelon’s cost management initiatives will have a positive impact on margins and its planned $26B investments through 2023 will strengthen its operation.

New Upgrades

Omnicell’s (OMCL) EnlivenHealth Launch to Aid Patient Outcomes

The Zacks analyst is upbeat about Omnicell’s launch of EnlivenHealth to improve patient outcomes and cut costs via Software-as-a-Service technology solutions.

Avnet (AVT) Gains From IoT Strategy And Acquisitions

Per the Zacks analyst, Avnet’s continued focus on boosting its IoT capabilities is helping it expand in newer markets and gain customers.

Resistors & Capacitors Portfolio Strength Aids Vishay (VSH)

Per the Zacks analyst, Vishay is riding on strength across its resistors and capacitors offerings which are aiding its presence in the industrial, military, and medical end-markets.

New Downgrades

Alaska Air Group (ALK) Stung by Low Passenger Revenues

The Zacks analyst is worried about the coronavirus-led decline in passenger revenues. Moreover, trimmed capacity is flaring up unit costs.

Weak Demand, Lower Commodity Prices Ail Univar (UNVR)

Per the Zacks analyst, soft demand due to weakness in global industrial markets will hurt the company’s top line. It also faces headwinds from lower pricing in certain bulk commodities.

End-Market and Forex Woes to Hurt Altra Industrial (AIMC)

Per a Zacks analyst, softness in various end-markets, including commercial aerospace, metals, mining, and others, might hurt Altra Industrial (AIMC) in the quarters ahead.

Click to get this free report

Mastercard Incorporated (MA): Free Stock Analysis Report

Eli Lilly and Company (LLY): Free Stock Analysis Report

JPMorgan Chase Co. (JPM): Free Stock Analysis Report

Caterpillar Inc. (CAT): Free Stock Analysis Report

Bristol Myers Squibb Company (BMY): Free Stock Analysis Report

Anthem, Inc. (ANTM): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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