Top Analyst Reports for Apple, Mastercard & 3M

Wednesday, January 3, 2018

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 Apple (AAPL), Mastercard (MA) and 3M (MMM). 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-rated Apple’s shares are up +48.5% over the past year, handily outperforming the S&P 500 (up +19.4%) and the Zacks Technology sector (up +27.5%). The company is benefiting from steady iPhone sales, spurt in Services segment and resurgence in Mac and iPad sales.

Apple is anticipated to benefit from the strong demand for iPhone X in mature markets, which will help it to sustain momentum in the near term. Going ahead, the Zacks analyst thinks foray into fast-growing technologies like autonomous vehicles, artificial intelligence (AI) & AR/VR are long-term drivers.

Estimates have remained stable ahead of the company's Q1 earnings release. The company has positive record of earnings surprises in recent quarters. However, the new iPhone X at $999 is quite pricey, particularly for cost sensitive markets like India. Intensifying competition from cheaper Chinese handset-makers remains a concern.

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

Shares of Mastercard have gained +42.8% over the past one year, outperforming the Zacks Financial Transaction Services industry which has gained +34.4% over the same period. The Zacks analyst likes its solid market position, ongoing expansion and digital initiatives, and significant opportunities from the secular shift toward electronic payments. The acquisitions of VocaLink and NuData Security complement the company’s efforts to participate in new payment flows and enhance its safety and security offerings.

The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2.5% upward over the last 90 days. However, Mastercard continues to face increasing costs, a volatile forex environment and legal issues. Also, higher incentives and rewards will put pressure on the bottom line.

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

3M's shares have gained +8.9% over the past three months, outperforming the Zacks Diversified Operations industry, which has declined -3.4% over the same period. The Zacks analyst likes 3M's global footprint, diversified product portfolio and the ability to penetrate different markets.

At the same time, the company is continuing with its portfolio restructuring efforts by divesting assets that no longer fit in its strategy and continues to make investments in other lucrative markets. Portfolio management, investment in innovation and business transformation are the three key levers on which the company intends to focus. However, given its international presence, adverse foreign currency translations are likely to affect 3M’s ability to realize projected growth rates in sales and earnings.

3M is also facing increased pension expenses as its workforce begins to retire. The related extra costs are a drag on the bottom line. Sustained dollar strength remains another headwind as exports consume a significant part of the company’s operations.

(You can read the full research report on 3M here >>>).

Other noteworthy reports we are featuring today include Chubb (CB), AstraZeneca (AZN) and Mondelez (MDLZ).

Investor Alert: Breakthroughs Pending

A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.

Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.

Click here to see them >>

Mark Vickery

Senior Editor

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

Apple (AAPL) Banks on Acquisitions, Robust iPhone X Demand

Numerous Deals, Investment in Technology Aid Mastercard (MA)

3M's (MMM) Core Focus Marred by Pension Costs, Currency Woes

Featured Reports

Helmerich's (HP) High-End FlexRigs To Offset Sluggish Orders

While appreciating Helmerich & Payne's more efficient and technologically-advanced FlexRigs, the Zacks analyst remains worried over the slow pace of new contract orders and stiff price competition.

Acquisition, Rebuilding Demand to Aid Beacon Roofing (BECN)

Per the Zacks analyst, the Allied Building buyout will broaden Beacon's product portfolio and geographical reach.

Mondelez (MDLZ) Strong on Cost Savings, Volume Trend Weak

The Zacks analyst thinks Mondelez's efficient cost savings has resulted in margin expansion despite lower sales.

Acquisition of C. R. Bard Boosts Becton, Dickinson (BDX)

The Zacks analyst is bullish on Becton, Dickinson and Company's recent acquisition of C. R. Bard. The company will now establish a new segment - BD Interventional, into which Bard will be integrated.

Easing Margin Pressure, GEAM Deal Support State Street (STT)

Per the Zacks analyst, easing margin pressure, synergies from GE Asset Management (GEAM) deal and new business wins will likely continue supporting State Street's profitability in the quarters ahead.

Solid Organic Sales to Fuel Growth at Church & Dwight (CHD)

Per the Zacks analyst, Church & Dwight is set to keep gaining from solid organic sales that was fueled by broad-based growth in third quarter.

Robust Software Sales Aid Blackberry (BB) Amid High Costs

The Zacks analyst is impressed by its decision to focus exclusively on software business. Strong software sales are aiding the company hugely.

New Upgrades

Occidental (OXY) to Gain from Higher Production in Permian

The Zacks analyst believes that amid improving oil prices Occidental is expected to benefit from its higher-margin production from the Permian Resources business.

Chubb Limited (CB) Continues to Gain from Higher Premiums

Per the Zacks analyst, improving premiums continue to boost revenues for Chubb, with the top line set to improve further on solid organic as well as inorganic growth.

Principal's (PFG) Fee-Based Model, Capital Deployment Impress

Per the Zacks analyst, Principal Financial remains poised for growth, riding on fee-based business model, strong segmental performance, growing assets under management and a solid capital position.

New Downgrades

AstraZeneca (AZN) Faces Generic Woes, Diabetes Pressure

The Zacks analyst stresses that AstraZeneca's core products like Nexium, Crestor and Seroquel are facing generic competition which is hurting sales. The diabetes franchise also faces stiff competition

Old Facilities, Emission Rules to Hurt NRG Energy (NRG)

The Zacks analyst believes NRG Energy could be adversely impacted by unplanned outages in old facilities. 30% coal fired production can also increase operating costs for meeting emission standards.

TiVo (TIVO) Sales to Be Hit by Delay in Comcast Settlement

Delay in dispute settlement with Comcast may hurt TiVo's 2018 revenues per the Zacks analyst. Comcast may avoid renewing its existing licensing agreement with TiVo, which will expire in July 2018.

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
 
3M Company (MMM) : Free Stock Analysis Report
 
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
D/B/A Chubb Limited New (CB) : Free Stock Analysis Report
 
Astrazeneca PLC (AZN) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research