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Top Stock Reports for Walmart, PayPal & Comcast

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Monday, May 24, 2021

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 Walmart Inc. (WMT), PayPal Holdings, Inc. (PYPL), and Comcast Corporation (CMCSA). 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 >>>

Shares of Walmart have modestly outperformed the Zacks Retail - Supermarkets industry in the last three-month period (+7.3% vs. +7.0%). The Zacks analyst believes that Walmart is gaining on rising demand for essentials amid the pandemic. Stay-at-home trends are also boosting e-commerce sales, which increased across all units in first-quarter fiscal 2022.

During the quarter, the top and bottom lines grew year over year, with U.S. comp sales rising for the 27th straight time. With curbs being lifted, the company’s U.S. store environment is in good shape, while e-commerce also remains on the growth trajectory. To this end, Walmart’s efforts to enhance deliveries are also noteworthy. Encouragingly, management raised its guidance for fiscal 2022.

However, the second-quarter earnings view suggests a decline, due to divestitures related to the International unit. Additionally, management expects supply-chain hiccups and wage cost inflation.

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

Shares of PayPal have outperformed the Zacks Internet - Software industry in the last one-year period (+66.2% vs. +35.3%). In fact, the company reported strong first quarter results wherein both earnings and revenues grew year over year. Robust growth in total payments volume owing to increasing net new active accounts drove the top line.

Moreover, strengthening customer engagement was a positive. Further, strong performance by Venmo and merchant services contributed well to the TPV growth. Additionally, boom in digital payment owing to the coronavirus pandemic, remained a tailwind.

The Zacks analyst believes that growing transaction revenues of the company are likely to continue driving the top-line growth. Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. However, intensifying competition in the digital payment market poses a serious risk to the company’s market position. Also, foreign exchange headwinds remain concerns.

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

Shares of Comcast have gained +42.2% over the past year against the Zacks Cable Television industry’s gain of +36.0%. The Zacks analyst believes that the company is benefiting from solid high-speed Internet customer wins as reflected by its first-quarter results. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience.

Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business. Its streaming service Peacock has gained significant tract within a short span of time and is a key catalyst in driving broadband sales.

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Theme park revenues are expected to suffer from lower footfall. Further, weakness in film business is also a headwind. Moreover, a leveraged balance sheet is a concern.

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

Other noteworthy reports we are featuring today include The Boeing Company (BA), HSBC Holdings plc (HSBC) and Target Corporation (TGT).

Infrastructure Stock Boom to Sweep America

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The only question is “Will you get into the right stocks early when their growth potential is greatest?”


Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

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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

Walmart (WMT) Benefits from Robust E-Commerce Operations

PayPal (PYPL) Benefits From Increasing Total Payment Volume

High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)

Featured Reports

Glaxo (GSK) Expects New Approvals Amid Rising Competition

The Zacks analyst expects several new drug/line extension approvals for Glaxo in 2021, which should boost long term growth. However, competitive pressure on its HIV and respiratory drugs is rising.

Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt

Per the Zacks analyst, strategic mergers made by Boeing, such as overtaking KLX, boosts growth. However, low 737 deliveries as a result of the worldwide grounding of 737 Max jets raises concerns.

Xerox (XRX) Rides on Project Own It Program Amid High Debt

The Zacks analyst believes Project Own It, intended to increase productivity and operational efficiency, reduce costs and realign business, is benefiting Xerox's bottom line.

Strong Product Portfolio, Buyouts to Drive EnerSys (ENS)

The Zacks analyst believes that EnerSys' strong product portfolio, along with solid demand for its TPPL products and accretive buyouts like NorthStar, will continue to lend momentum to the company.

Rising Top Line, Solid Cash Flows Aid Encompass Health (EHC)

Per the Zacks analyst, Encompass Health is benefiting from improving top line, courtesy of pricing discipline and acquisitions.

Restructuring to Aid HSBC Holdings (HSBC) Amid Low Rates

Per the Zacks analyst, HSBC Holdings' efforts to improve efficiency through business restructuring will aid profits. Low global interest rates and the pandemic related uncertainty will hurt revenues.

Cerner (CERN) Rides on EHR & EMRs, Margin Contraction a Woe

Per the Zacks analyst, Cerner continues to benefit from its lucrative EHR (Electronic Health Record) & EMR (Electronic Medical Record) platforms.

New Upgrades

Expanding Footprint & Digitalization to Drive Copart (CPRT)

Copart's expanding network across the United States and international markets along with its rising e-commerce efforts are likely to boost the company's profitability, per the Zacks analyst.

Target's (TGT) Omnichannel & Store Expansion to Boost Sales

Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, coming up with new brands, remodeling stores and expanding same-day delivery options are likely to fuel top-line growth.

Petrobras (PBR) to Gain from Brazil's Pre-Salt Reserves

The Zacks analyst believes that Petrobras' impressive portfolio, particularly its stakes in Brazil's attractive pre-salt oil reservoirs should boost its earnings outlook.

New Downgrades

Lower Replacement Equipment Sales Hurt Planet Fitness (PLNT)

Per the Zacks analyst, Planet Fitness has been negatively impacted by lower replacement equipment sales owing to the pandemic. Also, slowdown in new store developments and remodels remains a concern.

Twitter (TWTR) Suffers from Stiff Competition for Ad-Dollars

Per the Zacks analyst, intensifying competition for ad dollars from the likes of Facebook and Google doesn't bode well. Lack of revenue diversification is a major concern for Twitter.

CrowdStrike's (CRWD) Profits to Hurt by Elevated Expenses

Per the Zacks analyst, elevated investment toward enhancing sales capabilities to gain enterprise customers and grab larger market share to weigh on CrowdStrike's bottom-line results in the near-term.

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
Walmart Inc. (WMT) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Comcast Corporation (CMCSA) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
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