Friday, June 18, 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 Abbott Laboratories (ABT), Bank of America (BAC), 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 >>>
Shares of Abbott have underperformed the Zacks Medical Products industry in the year-to-date period (+1.8% vs. +3.8%). The Zacks analyst believes that the branded generics and international diabetes businesses should drive growth in the coming quarters. Further, new product launches and acquisitions are likely to boost Abbott’s sales further.
The company posted robust year-over-year improvements in the first quarter. It registered organic sales growth across most operating segments. Further, Diabetes Care sales were strong on the back of solid worldwide adoption of FreeStyle Libre. However, the company’s disappointing performance in the Pediatric Nutrition unit remains a major concern.
(You can read the full research report on Abbott here >>>)
Bank of America shares have gained +31.4% over the last six months against the Zacks Major Regional Banks industry’s gain of +27.9%. The Zacks analyst believes that opening of new branches, enhanced digital offerings, strategic acquisitions and efforts to manage expenses will continue to support the company’s profitability in the near term.
Moreover, a strong balance sheet and liquidity position are expected to continue aiding financials. However, lower interest rates and the Federal Reserve signaling no near-term chance of change in the same are expected to keep hurting the bank’s margins and interest income.
(You can read the full research report on Bank of America here >>>)
Shares of PayPal have gained +14.7% in the past three months against the Zacks Internet Software industry’s gain of +1%. The Zacks analyst believes that PayPal is benefiting from robust growth in total payments volume on the back of increasing net new active accounts. Moreover, strengthening customer engagement on the company’s platform is another positive.
Solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind. Also, accelerating transaction revenues of PayPal are likely to continue driving revenues. However, increasing credit loss reserves due to macroeconomic projections on account of the ongoing pandemic remains a matter of concern.
(You can read the full research report on PayPal here >>>)
Other noteworthy reports we are featuring today include The Procter & Gamble (PG), BHP Group (BHP) and Boeing (BA).
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Today's Must Read
Abbott (ABT) Base Business Rebounds, Drop in FY View Ails
Expense Saving Supports Bank of America (BAC) Amid Low Rates
PayPal (PYPL) Benefits From Increasing Total Payment Volume
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
Per the Zacks analyst, P&G has been witnessing cost-savings and efficiency gains across all its business driven by the productivity program.
Liquidity, High Iron Prices Aid BHP Group (BHP), Costs Hurt
The Zacks analyst believes BHP's strong cash flow, focus on lowering debt, higher iron prices, and efforts to make operations more efficient will drive growth despite higher costs.
Strategic Mergers Aid Boeing (BA), Low 737 Deliveries Hurt
Per the Zacks Analyst, strategic mergers made by Boeing, such as overtaking KLX, boost growth. However, low 737 deliveries as a result of the worldwide grounding of 737 Max jets raises concerns.
ConocoPhillips (COP) Banks on Oil-Rich Permian Footprint
The Zacks analyst expects ConocoPhillips to boost production from lucrative oil resources in the prolific Permian Basin.
New Product Development, Wide Market Reach Aid Eaton (ETN)
Per the Zacks analyst, Eaton's operations in 175 countries across the world and the development of new products through ongoing R&D investments will continue to drive demand and boost profitability.
Strategic Initiatives Benefit Aon (AON), Rising Debts Hurt
Per the Zacks analyst, buyouts and collaborations have enhanced the company's capabilities, which in turn, has led to bottom-line growth.
T. Rowe (TROW) Rides on Organic Growth Moves Amid High Costs
As per Zacks analyst, organic growth-focused initiatives and a debt-free position along with substantial liquidity might continue to support T. Rowe Price.
International Paper (IP) Rides on Favorable Demand, Buyouts
The Zacks analyst expects International Paper to gain from elevated packaging demand as well as focus on strategic acquisitions to strengthen its packaging business.
Western Digital (WDC) Rides on High-Capacity HDD Adoption
Per the Zacks analyst, Western Digital is benefiting from demand for high-capacity energy-assisted drives (16 and 18 terabytes) and its second-generation NVMe enterprise solid-state drives (SSDs).
Strength in E-Commerce Drives PVH Corp's (PVH) Top Line
Per the Zacks analyst, PVH Corp is gaining from solid online sales in all regions and brands, even after stores reopened. Notably, revenues in digital commerce unit surged 66% year over year in Q1.
Debt Maturity Profile to Weigh on Canadian Natural (CNQ)
The Zacks analyst is worried that the company is set to face debt maturities each year out till 2027, thereby exposing it to refinancing risk at a time of extremely volatile commodity prices.
Stiff Competitive Landscape, Forex Woes Ail Abiomed (ABMD)
The Zacks analyst is worried about Abiomed facing fierce competition in the field of treatments for heart-related diseases. Unfavorable currency movements are an added issue.
Cat Loss Exposure, Rising Expenses Hurt CNA Financial (CNA)
Per the Zacks analyst, CNA Financial's exposure to catastrophe loss induces underwriting volatility thus profitability while rising expenses affecting net operating income concerns.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Procter & Gamble Company The (PG) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
Bank of America Corporation (BAC) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
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