Top Stock Reports for Alphabet, Visa & PayPal

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.

You can see all of today’s research reports here >>>

Alphabet shares have outperformed the Zacks Internet Services industry in the year to date period (+25.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} vs. +19.3{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}). 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.

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

Visa shares have gained +8{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} over the last six months against the Zacks Financial Transaction Services industry’s gain of +8.9{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. 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.

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

Shares of PayPal have gained +7.6{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3} in the past three months against the Zacks Internet Software industry’s loss of -10.2{14cc2b5881a050199a960a1a3483042b446231310e72f0dc471a7a1eddd6b0c3}. 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.

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

Other noteworthy reports we are featuring today include Costco Wholesale (COST), Bristol-Myers Squibb (BMY) and Target (TGT).

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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

Alphabet (GOOGL) Rides on Diversification; Risks Remain

Growing Top-line Aid Visa (V), Escalating Expenses Hurt

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Featured Reports

Decent Comps Run to Fuel Costco’s (COST) Sales, Cost a Concern

Per the Zacks analyst, Costco’s growth strategies, decent comps run and solid membership trend are likely to fuel sales.

Revlimid, Eliquis Fuel Bristol-Myers (BMY) As Opdivo Weakens

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.

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

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.

S&P Global (SPGI) Rides on Buyouts Despite Weak Bond Issuance

The Zacks analyst admires S&P Global’s buyout strategy to innovate, increase differentiated content and develop new products.

Strong Data-Center Demand Aids Equinix (EQIX) Amid Debt Woes

Per the Zacks analyst, growth in digital infrastructure and cloud adoption is driving the demand for Equinix’s assets.

BTG Acquisition Aids Boston Scientific (BSX) Amid Pandemic

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.

New Fleet to Aid Carnival (CCL), Cruise Cancellation Hurts

Per the Zacks analyst, the addition of its new ship Enchanted Princess, to its global fleet of Princess Cruises to drive growth.

New Upgrades

Cadence (CDNS) Rides on EDA, Hardware & IP Solutions Demand

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.

Growing Deposits & Liquidity Strength Aid Fifth Third (FITB)

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.

Productivity Actions, Acquisitions to Aid Celanese (CE)

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.

New Downgrades

Higher Costs, Commercial Weakness Ail Sherwin-Williams (SHW)

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.

Operational Headwind, High Costs Ail Kirkland Lake Gold (KL)

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.

Sally Beauty (SBH) Troubled by Pandemic-Led Store Closures

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.

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
 
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.