Monday, July 29, 2019
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 Alphabet (GOOGL), Intel (INTC) and PayPal (PYPL). 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 >>>
Alphabet’s shares have gained +1.2% in the past one year, outperforming the Zacks Internet Services industry's decline of -14.9%. Alphabet reported strong second-quarter results driven by strength in advertising and cloud businesses.
The Zacks analyst thinks its strong focus on bolstering its presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid growth. Its strong initiatives toward elimination of bad ads and introducing useful major search updates are tailwinds. Further, Google’s robust mobile search is also a positive.
Google’s strong focus on the innovation of its AI techniques and home automation space is aiding its business growth. However, the company’s growing litigation issues, rising competition and increased spending on YouTube and consumer gadgets might hurt its profitability.
(You can read the full research report on Alphabet here >>>).
Shares of Intel have outperformed the Zacks General Semiconductor industry in the past year, gaining +8.2% vs. a decline of -1.8%. Intel reported stellar second-quarter results and provided encouraging third-quarter guidance.
The Zacks analyst thinks the company is benefiting from rising demand for its higher performance products, both in data center and client domains. Moreover, synergies from Mobileye acquisition and growing clout in ADAS market favor the company’s growth prospects. Further, Intel’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is yielding results.
Notably, Intel recently announced that Apple is likely to acquire its failed 5G smartphone modem business. However, weakness in from China and softness in NAND flash pricing trends, expenses pertaining to 10-nanometer (nm) ramp and constrained supply remain major concerns.
(You can read the full research report on Intel here >>>).
PayPal’s shares have outperformed the Zacks Internet Software industry in the past year (+40.1% vs. +26.5%). PayPal reported mixed second quarter results with earnings surpassing estimates while revenues missed the same. However, both top-line as well as bottom line reflected year over year growth on the back of benefits from investment in MercadoLibre and increasing customer engagements on PayPal’s platform.
Further, robust growth in total payments volume owing to Venmo and One Touch also lifted performance. The Zacks analyst thinks growing momentum of the company’s core peer to peer and merchant services are a major positive.
However, weak eBay performance remains a headwind for the company’s total payment volume. Negative impact of sale of the U.S. consumer credit receivables portfolio to Synchrony is a risk to the company’s top-line growth.
(You can read the full research report on PayPal here >>>).
Other noteworthy reports we are featuring today include 3M (MMM), Starbucks (SBUX) and Stryker (SYK).
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
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
Alphabet (GOOGL) Rides on Diversification, Legal Troubles Ail
Intel (INTC) Rides on AI-based Alliances & Product Rollouts
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Starbucks' (SBUX) Strong Global Footprint to Drive Growth
Per the Zacks analyst, Starbucks' solid global footprint, successful innovations, best-in-class loyalty program and digital offerings like mobile order and delivery services will drive performance.
Buyouts & Restructuring Moves Aids 3M (MMM), High Costs Ail
Per a Zacks analyst, 3M gains from its restructuring actions aimed at lowering costs, productivity enhancement and boosting cash flow.
Core MedSurg Unit Aids Stryker (SYK) Amid Pricing Pressure
Per the Zacks analyst, Stryker continues to gain from the sustained performance at its MedSurg unit.
Increase in New Business Aid Travelers (TRV), Cat Loss Hurts
Per the Zacks analyst, Travelers is poised for growth on high retention, increase in new business and positive renewal premium change.
T-Mobile (TMUS) Rides on Customer Growth, Network Expansion
Per the Zacks analyst, T-Mobile is poised to benefit from accelerated customer growth, while investing in its network and preparing for nationwide 5G with the aggressive rollout of 600 MHz spectrum.
Cost Cuts Aid Norfolk Southern (NSC) Amid Sluggish Volumes
The Zacks analyst likes the efforts to check costs. Initiatives to reward its shareholders are encouraging too.
Cancer Drugs Fuel AstraZeneca's (AZN) Return to Sales Growth
The Zacks analyst points out that AstraZeneca returned to product sales growth in 2018 with the momentum continuing in 2019 on the back of its cancer drugs.
Solid Investments, Customer Growth Aid American Water (AWK)
Per the Zacks analyst, American Water Works' $8 to $8.6 billion capital spending plan for next five years and consistent customer growth via organic & inorganic methods will drive its performance.
Leadership Brands Likely to Keep Driving Helen of Troy (HELE)
Per the Zacks analyst, Helen of Troy has been gaining from growth in Leadership Brands. The category, which improved 7.4% in the first quarter, is expected to remain a key catalyst in fiscal 2020.
Fekola Mine Expansion & Low Debt Levels to Aid B2Gold (BTG)
Per the Zacks analyst, B2Gold will benefit from focus on lowering debt levels and the expansion of Fekola mine that continues to produce gold ahead of expectations.
Increasing Costs, Exposure to Risky Loans Hurt Zions (ZION)
Per the Zacks analyst, rising costs due to continued investments in franchise will likely hurt Zions' bottom line. The company's significant exposure to real estate loans might hamper financials.
High Tariff Costs & Low Shipments Ail Harley (HOG)
Per the Zacks analyst, Harley's operating income is adversely impacted by incremental EU and China tariff costs, reduced shipments and unfavorable product mix.
Rising Plant Operating Expenses Hurts Covanta Holding (CVA)
Per the Zacks analyst, persistently higher plant operating expenses are hurting Covanta Holding's profits and margins. Commodity price volatility is also a headwind.
Stryker Corporation (SYK) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research