The Zacks Analyst Blog Highlights: PayPal, Bank of America, Citigroup, Zoom Video and Goldman Sachs
For Immediate Release
Chicago, IL – December 31, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: PayPal Holdings, Inc. PYPL, Bank of America Corporation BAC, Citigroup Inc. C, Zoom Video Communications, Inc. ZM and The Goldman Sachs Group, Inc. GS.
Here are highlights from Wednesday’s Analyst Blog:
Top Stock Reports for PayPal, Bank of America and Citigroup
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, Bank of America and Citigroup. 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 outperformed the Zacks Internet Software industry in the year to date period (+114.1% vs. +108.5%). 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. Further, intensifying digital payment competition is a risk.
(You can read the full research report on PayPal here >>>)
Shares of Bank of America have lost -14.8% over the past year against the Zacks Major Regional Banks industry's loss of -19.5%. The Zacks analyst believes that opening of new branches, steady improvement in digital offerings and efforts to manage expenses are likely to support profitability.
A strong balance sheet and liquidity position are expected to continue aiding the company's financials amid economic slowdown. Further, its capital deployments are decent. However, near-zero interest rates and no near-term chance of any change in the same are expected to continue hurting the bank's margins and interest income.
Additionally, coronavirus-induced concerns are likely to further hamper business activities. Thus, loan growth is expected to be muted in the near term.
(You can read the full research report on Bank of America here >>>)
Citigroup shares have gained +21.1% over the past six months against the Zacks Major Regional Banks industry's rise of +28.3%. The Zacks analyst believes that Citigroup's streamlining efforts, along with strategic investments in core business, bode well.
Also, net interest revenues will likely be supported by loan growth and mix, despite the low interest rates environment. Further, manageable debt level makes Citigroup less risky in case of any economic downturn. Though, pending litigation and subdued consumer banking business remain concerns, Citigroup's shrinking costs base due to the wind-down of legacy assets is aiding bottom-line expansion.
Notably, the company recently announced to have passed the Fed's second round of stress test and will resume buybacks in 2021.
(You can read the full research report on Citigroup here >>>)
Other noteworthy reports we are featuring today include Zoom Video Communications and Goldman Sachs.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
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