Top Stock Reports for Mastercard, Medtronic & HCA Healthcare

Monday, March 31, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Mastercard Inc. (MA), Medtronic plc (MDT) and HCA Healthcare, Inc. (HCA), as well as a micro-cap stock United Homes Group, Inc. (UHG). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

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 >>>

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You can read today's AWS here >>> Q1 Ends Today, Jobs Week & Tariffs - Oh My!

Today's Featured Research Reports

Shares of Mastercard have gained +13.7% over the past year against the Zacks Financial Transaction Services industry’s gain of +17.4%. The company’s acquisitions are helping it to grow addressable markets and drive new revenue streams. It expects low-double-digit net revenue growth in 1Q25. The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode.

Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. But its dividend yield is lower than the industry average.

Growing operations will likely support a future rebound. Steep operating expenses might stress its margins in the future. The Zacks analyst expects adjusted operating costs to jump 13% in 2025. High rebates and incentives may weigh on net revenues. Also, the stock is overvalued relative to its industry.

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

Medtronic’s shares have gained +4.1% over the past year against the Zacks Medical - Products industry’s gain of +9.5%. The company is strategically expanding its global presence to address unmet demand for advanced medical devices. Within Cardiovascular, the company is gaining market share, banking on product launches in CRM and Structural Heart. Hypertension has brought up multibillion-dollar opportunities.

In MedSurg, despite all distributor disruptions, Medtronic is scaling the production of Hugo RAS. The Neuroscience portfolios continue to contribute. Further, the company’s Pacing business is driving strong growth from Micra leadless pacemaker. A strong liquidity position should allow it to meet its near-term debt obligations.

Meanwhile, ongoing supply-related disruptions in many of Medtronic’s markets raise concerns. Higher costs and expenses stemming from geopolitical tensions weigh on its profitability. Currency woes add to the risks.  

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

Shares of HCA Healthcare have outperformed the Zacks Medical – Hospital industry over the past year (+4.4% vs. +1.1%). The company’s revenues remain on an uptick on the back of growth in admissions and in-patient surgeries. The resumption of deferred elective procedures is likely to sustain the trend.

Revenues are anticipated to be between $72.8 billion and $75.8 billion in 2025, the midpoint of which indicates a 5.2% rise from the 2024 figure. Multiple buyouts aided in increasing patient volumes and added hospitals to the portfolio. The company is benefiting from its telemedicine business line. Its operating cash flows rose 11.5% YoY in 2024.

The company resorts to prudent capital deployment via share buybacks and dividend payments. However, a debt-heavy balance sheet induces a rise in interest expenses. Also, escalating expenses may strain margins. As such, the stock warrants a cautious stance.

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

United Homes’ shares have underperformed the Zacks Real Estate - Development industry over the past year (-57.9% vs. -13.9%). This microcap company with market capitalization of $176.98 million is having profitability under pressure from margin compression, high SG&A, shrinking community count and rate-sensitive buyer segments. Execution risks, geographic concentration and EBITDA decline warrant caution. Exposure to tariffs on imported lumber and steel could inflate material costs and pressure margins.

Nevertheless, United Homes is showing strengthening demand, with net new orders up 19.4% year over year in fourth-quarter 2024 and growing backlog visibility driven by a refreshed product lineup. New home plans and a vendor re-bidding initiative are improving gross margins and lowering construction costs.

The asset-light model with 98% of lots under option enhances return on equity and flexibility. M&A has expanded geographic reach and added higher-end offerings. A recent debt refinancing enhances financial flexibility and reduces dilution risk.

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

Other noteworthy reports we are featuring today include Eaton Corp. plc (ETN), Agnico Eagle Mines Ltd. (AEM) and Fastenal Co. (FAST).

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

Acquisitions and Partnerships Aid Mastercard (MA), High Costs Ail

Cardiovascular Sales, Expansion Plans Drive Medtronic (MDT)

Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)

Featured Reports

New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst Eaton's operations in 160 countries across the world and development of new products through ongoing R&D investments will continue to drive demand and boost profitability.

Growth Projects, Kirkland Buyout Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output and its acquisition of Kirkland Gold amid headwinds from higher costs.

Fastenal (FAST) Benefits From eBusiness, High Costs Ail
Per the Zacks analyst, Fastenal's increased adoption of its digital platforms is expected to boost growth. Yet, high costs and expenses given ongoing investments in its business are risks.

SpringWorks (SWTX) Banks on Ogsiveo, Overdependence a Concern
Per the Zacks analyst, SpringWorks' newly approved drug, Ogsiveo, for treating desmoid tumors has witnessed a strong start, driven by a robust launch. However, overdependence on Ogsiveo is a concern.

Patterson-UTI (PTEN) to Gain from Advancing Rig Technology
The Zacks analyst believes that Patterson-UTI's investment in its Apex Tier-1 drilling rigs and automation systems enhances efficiency but is worried over declining revenue and profitability.

New Upgrades

Guidewire (GWRE) Benefits from Momentum in Cloud Platform
Per the Zacks analyst, momentum in Guidewire Cloud platform is driving the topline expansion. However, rising costs and forex volatility amid broader market uncertainity are concerns.

Molson Coors (TAP) Revitalization Plan to Act As Catalyst
Per the Zacks analyst, Molson Coors is advancing its revitalization plan, aiming for sustainable sales growth by optimizing operations and reinvesting in its brands and core capabilities.

New Downgrades

Agios' (AGIO) Sole Dependence on Pyrukynd A Concern
Per the Zacks Analyst, Agios is highly dependent on its sole marketed drug, Pyrukynd, to drive sales. Other than Pyrukynd, the company's pipeline drugs are still in early-stage development.

Auto and Industrial Slowdown Hurt ON Semiconductor (ON)
Per the Zacks analyst, onsemi struggles with soft automotive and industrial demand, geopolitical tensions, inventory digestion, and pricing pressures.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research