Top Stock Reports for Microsoft, Amazon.com & Mastercard

Tuesday, May 13, 2025

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 Microsoft Corp. (MSFT), Amazon.com, Inc. (AMZN) and Mastercard Inc. (MA), as well as a micro-cap stock CBL & Associates Properties, Inc. (CBL). 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 >>> CPI Inflation Rate at +2.3%, Earnings Reports Mixed

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+6.8% vs. +4.5%). The company’s Q3 fiscal 2025 earnings and revenues beat estimates, driven by strength in its AI business and Copilot adoption and backed by accelerating growth in Azure cloud infrastructure unit.

Productivity and Business Processes revenues rose due to strong adoption of Office 365 Commercial solutions. ARPU growth was driven by E5 as well as M365 Copilot. Intelligent Cloud revenues were driven by growth in Azure AI services and a rise in AI Copilot business. Focused execution drove non-AI services results aided by accelerated growth in the enterprise customer segment as well as some improvement in scale motions.

Xbox content and services revenues benefited from stronger-than-expected performance in third-party and first-party content. However, higher operating expenses and spending on Azure amid stiff competition in the cloud space remain concerns.

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

Shares of Amazon.com have gained +14.5% over the past year against the Zacks Internet - Commerce industry’s gain of +18.7%. The company’s first-quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance.

Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. Deepening focus on GenAI is a major plus.

However, Amazon announced mixed guidance for the second quarter. High tariffs imposed by President Trump on goods imported from China have cast uncertainty on retailers such as Amazon. AMZN's free cash flow has decreased significantly.

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

Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+28.8% vs. +24.9%). The company’s first-quarter earnings beat estimates. Its acquisitions are helping the company to grow addressable markets and drive new revenue streams. It expects mid-teens net revenue growth in 2Q25.

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. Operating cash flows surged 42.3% year over year in the first quarter of 2025.

However, its dividend yield is lower than the industry average. Steep operating expenses might stress its margins in the future. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.

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

Shares of CBL & Associates Properties have outperformed the Zacks REIT and Equity Trust - Retail industry over the past year (+27% vs. +11.7%). This microcap company with market capitalization of $788.55 million have its balance sheet, driven by non-recourse debt and a $60 million year-over-year net debt reduction, enhances stability and minimizes refinancing risk.

Liquidity remains robust with $276 million in cash and marketable securities, supporting flexibility and a $25 million buyback plan. Asset sales totaling $73.3 million unlocked gains and aided deleveraging. Despite modest same-center NOI declines and tenant closures, leasing momentum persists, with strong new rent spreads and 90.4% occupancy.

A stable $1.50 FFO and $6.98–$7.34 guidance reinforce earnings visibility. While a 12.5–13.3% dividend yield and 18.3% annual growth offer total return appeal, rising expenses, soft tenant sales, sustainability risks and leasing headwinds pose risks. CBL’s valuation suggests relative value for investors seeking undervalued income-generating REITs.

(You can read the full research report on CBL & Associates Properties here >>>)

Other noteworthy reports we are featuring today include Medtronic plc (MDT), Royal Caribbean Cruises Ltd. (RCL) and Xcel Energy Inc. (XEL).

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

Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)

Amazon (AMZN) Rides on Prime & AWS Amid Rising Competition

Accretive Buyouts, Strong Balance Sheet Aid Mastercard (MA)

Featured Reports

Cardiovascular Sales Boost Medtronic (MDT), FX Woes Worry
The Zacks analyst is impressed with Medtronic's Cardiac Ablation Solutions business positively boosting growth in the Cardiovascular arm. Yet, currency fluctuations remain a drag on sales.

Solid Bookings Aid Royal Caribbean (RCL), High Costs Hurt
Per the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, strength in onboard consumer spending and digital innovations. However, high fuel costs and macro woes ail.

Investments & Expanding Customer Base Aid Xcel Energy (XEL)
Per the Zacks analyst, Xcel Energy's investment of $45 billion through 2029 is likely to strengthen operations. The rising electric and natural gas customer base will boost demand and profitability.

Solid Budget to Aid Teledyne (TDY) Amid Supply Chain Issues
Per the Zacks Analyst, increasing U.S. defense budget boost growth prospects for Teledyne. However, persistent supply chain challenges in commercial aviation continue to pose threat for the stock

Tyson Foods (TSN) Gains From Solid Chicken Unit Performance
Per the Zacks analyst, Tyson Foods is benefiting from its solid Chicken segment, fueled by operational improvements. The segment's net sales rose 2% year-over-year in the second quarter.

Carlyle (CG) Rides on Rising AUM Balance Amid High Expenses
Per the Zacks Analyst, Carlyle's global presence and efforts to expand business are likely to continue aiding asset under management (AUM) growth. Yet, rising expenses are concerning.

Strength in HBP Segment to Benefit Griffon Amid Forex Woes
Per the Zacks analyst, Griffon's Home and Building Products (HBP) segment is driven by strong fundamentals in the residential market. Forex woes are an added concern for the company.

New Upgrades

Growing Top Line, Solid Capital Position Aid Palomar (PLMR)
Per the Zacks analyst, Palomar's growing revenues driven by higher premiums and net investment income have led to significant growth. Moreover, robust capital position supports capital deployment.

Copa Holdings (CPA) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Copa Holdings' top-line performance.

Amarin (AMRN) Rides on Robust Vascepa Sales Performance in EU
Per the Zacks analyst, label expansion of Amarin's sole marketed drug, Vascepa, in European markets is driving the top line. The recent restructuring plan to streamline operations also holds promise

New Downgrades

USA Compression (USAC) Depends Heavily on Its Key Clients
The Zacks analyst believes that USA Compression may face revenue risks due to high customer concentration, as its top 10 clients contribute approximately 33% of total revenue.

Onto Innovation (ONTO) Hit By Tariff Headwinds & Rising Costs
Per the Zacks analyst, the Trump administration's tariffs are adversely affecting Onto Innovation due to the U.S.-based manufacturing of its products, affecting both incoming costs and export costs.

Volatile Capital Markets, High Costs Hurt Jefferies (JEF)
Per the Zacks analyst, heightened volatility in the capital markets because of ongoing economic and policy concerns hurt Jefferies' top-line growth. Also, a steady rise in expenses is a headwind.

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

Zacks Investment Research