Top Stock Reports for PayPal, IBM & Fresenius Medical
Wednesday, April 22, 2020
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 (PYPL), International Business Machines (IBM) and Fresenius Medical Care (FMS). 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’s shares have outperformed the Zacks Internet Software industry over the past six months (+15.6% vs. +7.7%). The Zacks analyst believes that PayPal’s portfolio strength remains its key catalyst. Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding total active accounts.
Further, robust mobile checkout services of One Touch are contributing to the company’s total payment volume growth. Growing momentum across core peer to peer is also aiding in acceleration of payment volume. Additionally, the company is benefiting from well-performing core PayPal and Braintree. Positive contributions from Hyperwallet buyout are tailwinds.
However, eBay’s managed payments transition remains a concern. Moreover, declining eBay volume remains a headwind for the company’s TPV. Moreover, PayPal anticipates Honey and GoPay buyouts to limit earnings growth in 2020.
(You can read the full research report on PayPal here >>>)
Shares of IBM have lost -14.9% over the past year against the S&P 500’s fall of -7.2%. The Zacks analyst believes that growing clout of Watson Health and growth in Payer, Provider, Imaging and Life Sciences verticals are noteworthy. Also, gains from z15 hold promise.
IBM’s Q1 earnings and revenues declined year over year. Notably, adoption of cognitive applications and transaction processing platforms in March was affected by the coronavirus outbreak. For 2020, IBM has withdrawn guidance, citing uncertainty pertaining to coronavirus crisis.
Nevertheless, improving position in the hosted cloud, security and analytics domains bodes well. Moreover, Red Hat acquisition has helped IBM to enhance containerized software capabilities and strengthen competitive position in the hybrid cloud market. However, stiff competition in the cloud computing market and high-debt levels remain woes.
(You can read the full research report on IBM here >>>)
Fresenius Medical’s shares have lost -6.7% over the past three months against the Zacks Medical Instruments industry’s fall of -10.5%. The Zacks analyst believes that Fresenius Medical continues to gain from core Health Care Products and Services segments, which witnessed revenue growth in the quarter under review.
Revenues in the North American, EMEA and Asia-Pacific regions also improved. In fact, management remains optimistic about the buyouts of Sound Physicians and NxStage Medical. Furthermore, strong view for 2020 portrays a brighter picture. A wide range of dialysis products and services instills optimism in the stock.
Management expects to undertake meaningful investments in 2020 to capitalize on opportunities and optimize cost base. The company reported strong results in the fourth quarter. However, an intensely competitive dialysis products market and global coronavirus outbreak have added to woes.
(You can read the full research report on Fresenius Medical here >>>)
Other noteworthy reports we are featuring today include MPLX LP (MPLX), Laboratory Corporation of America (LH) and Insulet (PODD).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Solid Adoption of Cloud Solutions Aids IBM Amid High Debt
Solid Health Care Products Unit Aid Fresenius Medical (FMS)
Featured Reports
MPLX to Gain from Wink-to-Webster Crude Pipeline, Debt Ails
MPLX is well positioned to capitalize on the growing demand for midstream assets in the prolific Permian Basin with the W2W Pipeline. However, its debt burden concerns the Zacks analyst.
Chiltern Integration Boosts Covance Business of LabCorp (LH)
Strong synergy from the Chiltern Integration has started to strengthen LabCorp’s position in clinical development and is accelerating revenues within Covance.
Omnipod Pipeline & Expanding Market Access Aids Insulet (PODD)
Amid the coronavirus mayhem, the Zacks analyst expects the Omnipod business, which has a clinical trial and subsequent launch of Omnipod Horizon lined up, to maintain growth momentum.
Cost Savings Strategy Aids Deutsche Bank (DB) Amid Low Rates
Per Zacks analyst, Deutsche Bank’s cost-savings efforts to drive efficiency are encouraging and might neutralize impact of high legal costs, going forward.
News Corp (NWSA) Boosts Digital Offerings, Soft Ad a Concern
Per the Zacks analyst, News Corp is augmenting revenue streams through strategic buyouts, operational enhancement and enhanced digital offerings.
Lead Drug Promising For Immunomedics (IMMU) Amid Setbacks
Per the Zacks analyst, Immunomedics’s lead drug sacituzumab govitecan holds promise for the company given the target market.
Ocaliva Boost Intercept (ICPT), Overdependence Worrisome
Per the Zacks analyst, Intercept’s lead drug Ocaliva gains momentum and label expansion of the drug will boost sales.
New Upgrades
CommScope (COMM) Rides on Cost Optimization, 5G Products
Per the Zacks analyst, CommScope remains focused on reducing operational costs and optimizing overall expenses, while developing solutions to support wireline and wireless network convergence for 5G.
Cost Curtailment & Reduced Capex to Aid PBF Energy (PBF)
The Zacks analyst appreciates PBF Energy’s plan to lower cash outlays in 2020 amid coronavirus-hit refinery business, through cost curtailment measures and a cut in capital budget.
Product Innovations to Aid JAKKS Pacific’s (JAKK) Top Line
Per the Zacks analyst, JAKKS Pacific’s solid international footprint, focus on innovation and collaborations with popular brands and movie franchisees should boost top-line growth.
New Downgrades
Contract Wins Aids Leidos (LDOS), Enterprise Valuation Hurts
Per the Zacks Analyst, increased contract wins from the Pentagon bolster its backlog. However, a comparative analysis of its (EV/FCF) ratio reflects a gloomy picture that might be a cause of concern.
Coronavirus-Led Supply-Chain Disruption to Hurt SYNNEX (SNX)
Per the Zacks Analyst, SYNNEX’s near-term prospects look gloomy as coronavirus continues to disrupt technology supply chains and logistics services across the globe.
Coronavirus-led lower demand & Forex Woes Ail Sonic (SAH)
Per the Zacks Analyst, fewer footfall in stores amid coronavirus will hurt Sonic Automotive’s sales. Further, unfavorable foreign currency translations are likely to hurt profits, going forward.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
MPLX LP (MPLX) : Free Stock Analysis Report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report
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