Tuesday, April 6, 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 Alphabet (GOOGL), Visa (V), and PayPal Holdings (PYPL). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Alphabet shares have outperformed the Zacks Internet Services industry in the year to date period (+25.9% vs. +19.3%). The Zacks analyst believes that Alphabet’s strengthening cloud unit is aiding substantial revenue growth. Moreover, expanding data centers will continue to bolster its presence in the cloud space.
Further, major updates in its search segment are enhancing the search results, which is a major positive. Moreover, Google’s robust mobile search is gaining solid momentum. Additionally, strong focus on innovation of AI techniques and the home automation space should aid business growth in the long term.
However, the company’s growing litigation issues and increasing expenses might hurt profitability. Further, the company faces persistent pressure from advertisers to tighten controls on YouTube video service.
Visa shares have gained +8% over the last six months against the Zacks Financial Transaction Services industry’s gain of +8.9%. The Zacks analyst believes that numerous acquisitions and alliances have paved the way for long-term growth and consistently drove revenues for Visa.
Also, technological as well as a shift in payments to digital modes is a boon for the company. The acquisition of Visa Europe is a strategic fit as well. The coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding the company’s business volumes in turn.
However, high operating expenses stress the operating margins. Ramped-up client initiatives will dent the top line. Also, a sluggish cross-border business due to coronavirus looms on.
Shares of PayPal have gained +7.6% in the past three months against the Zacks Internet Software industry’s loss of -10.2%. 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. Additionally, solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind. Also, well-performing merchant services 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.
Other noteworthy reports we are featuring today include Costco Wholesale (COST), Bristol-Myers Squibb (BMY) and Target (TGT).
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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
Per the Zacks analyst, Costco’s growth strategies, decent comps run and solid membership trend are likely to fuel sales.
Per the Zacks analyst, Eliquis and Revlimid fuel Bristol-Myers as Opdivo faces competitive pressure. Nevertheless, the label expansion of Opdivo for first-line NSCLC should boost prospects.
Per the Zacks analyst, Target’s focus on enhancing omnichannel capacities, coming up with new brands, remodeling stores, and expanding same-day delivery options are likely to fuel top-line growth.
The Zacks analyst admires S&P Global’s buyout strategy to innovate, increase differentiated content and develop new products.
Per the Zacks analyst, growth in digital infrastructure and cloud adoption is driving the demand for Equinix’s assets.
The Zacks analyst is bullish on the $4.2-billion colossal acquisition of BTG successfully boosting Boston Scientific’s Peripheral Interventions portfolio despite pandemic-led mayhem.
Per the Zacks analyst, the addition of its new ship Enchanted Princess, to its global fleet of Princess Cruises to drive growth.
Per the Zacks analyst, Cadence benefits from solid demand for its broad-based product portfolio. Traction witnessed by Palladium Z1 and EDA-optimized Cloud-Hosted Design solution is also a positive.
Per Zacks analyst, Fifth Third’s rising deposits are a key source of funding and revenue growth. Also, with a decent cash position and falling debt, the bank’s liquidity position is strong.
Per the Zacks analyst, operational cost savings through productivity actions will support the company’s bottom line. Acquisitions including SO.F.TER. and Omni Plastics will also drive its results.
Per to the Zacks analyst, higher raw material and acquisition-related costs will weigh on the company’s bottom line. It also faces demand headwind from softness in its commercial end market.
Per the Zacks analyst, operational headwinds at the Holt Mine will exert pressure on Kirkland Lake Gold’s margins in 2021. The rising cost of production will also affect results.
Per the Zacks analyst, Sally Beauty’s sales remain troubled by pandemic-led hurdles like temporary store closures in Europe, Canada and Latin America and capacity constraints in some domestic markets.
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Visa Inc. (V): Free Stock Analysis Report
Target Corporation (TGT): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Get Free Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Bristol Myers Squibb Company (BMY): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.