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Top Analyst Reports for PayPal, Comcast & Novartis

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Sheraz Mian
·6 min read
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Monday, November 2, 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 PayPal (PYPL), Comcast (CMCSA) and Novartis (NVS). 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 >>>

PayPal shares have been stellar performers lately, bu they have modestly lagged the Zacks Internet Software industry in the year-to-date period (+72% vs. +74.1%). The Zacks analyst believes that PayPal is benefiting from robust growth in total payments volume owing to increasing net new active accounts.

Further, strengthening customer engagement on the company’s platform is a major positive. Furthermore, Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts. Additionally, growing momentum of core peer to peer and PayPal Checkout experiences is a tailwind.

Also, benefits from Honey buyout are positives. However, increasing credit loss reserves owing to macroeconomic projections on account of coronavirus is a serious matter of concern. Also, intensifying digital payment competition is a risk.

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

Shares of Comcast have lost -3.7% over the past year against the Zacks Cable Television industry’s rise of +2.5%. The Zacks analyst believes that growing high-speed Internet user base due to coronavirus, solid demand for Xfinity X1 and Flex services and newly launched Peacock ad-supported streaming service are key catalysts for Comcast’s growth.

Comcast’s third-quarter 2020 results were driven by solid growth in high-speed Internet, Business Services, Wireless and Sky segments. The growth in advertising revenues reflected an increase in political advertising revenues. However, Comcast persistently suffered video-subscriber attrition due to cord-cutting.

Moreover, its Universal Studios Hollywood theme park remains closed. Further, Comcast expects Sky EBITDA for the fourth quarter to decline. Weakness in film business is also a headwind. Moreover, the balance sheet remains significantly leveraged, which is a concern.

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

Novartis shares have lost -7.1% over the past six months against the Zacks Large-Cap Pharmaceuticals industry’s fall of -6%. The Zacks analyst believes that new launches like Piqray, Mayzent and Beovu should boost sales despite a slowdown due to the pandemic. The biosimilars portfolio also gains traction with new approvals and is expected to drive growth.

Novartis’ third-quarter results were mixed as sales were hit by the coronavirus pandemic but earnings beat expectations. Particularly, the dermatology, ophthalmology and Sandoz retail businesses were affected. Entresto maintained momentum on increased patient share across markets, although Cosentyx’s sales were soft.

Contributions from Kisqali and gene therapy, Zolgensma, have also boosted the performance in recent times. However, Sandoz’s generics business has been soft in the past few quarters. Moreover, pipeline setbacks and generic competition for key drugs are concerning.

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

Other noteworthy reports we are featuring today include BlackRock (BLK), Stryker (SYK) and FedEx (FDX).

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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

PayPal (PYPL) Benefits From Increasing Total Payment Volume

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

New Drugs Fuel Novartis (NVS) Amid Coronavirus Slowdown

Featured Reports

Strategic Buyouts, Rising AUM Balance Aids BlackRock (BLK)

Per the Zacks analyst, strategic acquisitions over the years have expanded BlackRock's market share. This bodes well for the company.

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.

Growing E-commerce Demand & Strong Liquidity Aid FedEx (FDX)

The Zacks analyst is appreciative of the company's solid cash position and shareholder-friendly measures.

Expansion Efforts Amid High Demand To Drive Equinix (EQIX)

Per the Zacks analyst, Equinix's efforts to expand the data-center platform organically and through buyouts aids it to capitalize on rising demand.

Delivery Business Aids Uber (UBER) Amid Mobility Weakness

The Zacks analyst is optimistic about the robust growth in Uber's delivery business. However, a downturn in the company's mobility business due to coronavirus-led woes is concerning.

Debt Reductions, Randgold Acquisition Aid Barrick (GOLD)

While Barrick faces challenges from higher production costs, it should gain from its actions to cut debt and synergies of the Randgold buyout, per the Zacks analyst.

Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail

Per the Zacks analyst, Chipotle is likely to benefit from its redesigned online ordering site featuring online payment and meal customizations.

New Upgrades

End-Market Strength & Diversification Aids Amphenol (APH)

Per the Zacks analyst, Amphenol benefits from strong information technology and data communications end-market demand.

Loan Growth & Varied Fee Income Aids UMB Financial (UMBF)

Per the Zacks analyst, UMB Financial benefits from rising loans and deposits along with diversified fee income. Moreover, a healthy balance sheet position acts as a tailwind for the company.

Investments & Cost Control Actions to Drive Terex (TEX)

The Zacks analyst expects Terex to gain from cost-reduction initiatives, investment in innovative products as well as on expansion of manufacturing facilities.

New Downgrades

Sarepta's (SRPT) Dependence on Exondys 51 Raises Concern

Per the Zacks analyst, Sarepta is dependent on Exondys 51 for its near-term growth, which raises concern. Competition in RNA-based treatment is another threat.

Post Holdings (POST) Troubled by Soft Foodservice Segment

Per the Zacks analyst, the pandemic-led soft away-from-home demand in channels like restaurants is a worry for Post Holdings' Foodservice unit. The unit is likely to be troubled in the fourth quarter.

High Import Tariff, Covid Impact Hurts FLIR Systems (FLIR)

Per the Zacks analyst, an escalating tariff is expected to raise costs and disrupt the company's supply chain. The prolonged impact of the COVID-19 pandemic will also impact its operations.

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
Stryker Corporation (SYK) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
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