Thursday, April 14, 2022
 
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 Holdings, Inc. (PYPL), Zoetis Inc. (ZTS), and CSX Corporation (CSX). 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 declined -61.8% over the past year against the Zacks Internet - Software industry’s decline of -47.3% as sentiment has soured on growth stocks whose full profitability is way out in the future in a rising interest rate environment. The Zacks analyst points out to intensifying competition in the digital payment market as a headwind for the company’s market position. 

However, PayPal continues to benefit 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.
 

Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts growth. Additionally, solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind.

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

Shares of Zoetis have outperformed the Zacks Medical - Drugs industry over the past year (+14.2% vs. -22.4%). The Zacks analyst believes that an innovative portfolio of petcare parasiticides, including Simparica Trio and dermatology products (Apoquel and Cytopoint) will help the company’s continued momentum. The uptake of Librela and Solensia, its new monoclonal antibody (mAb) therapies for osteoarthritis (OA) pain in dogs and cats, is encouraging in Europe and should boost growth. Zoetis’ companion animal portfolio maintains momentum.
 

The launch of innovative products (ProHeart, Librela, Revolution Plus and many vaccines) bolstered the portfolio and should fuel growth in the upcoming quarters. However, the livestock portfolio has been affected by generic competition across cattle, poultry, swine, and dairy consumer markets in the United States. Pricing pressure will continue to hurt sales, which is a woe.

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

Shares of CSX have outperformed the Zacks Transportation - Rail industry over the past year (+7.7% vs. +4.9%). The Zacks analyst believes that due to healthy freight environment, CSX is benefiting from higher export coal volumes, international intermodal shipments, and pricing gains. The company’s Volumes rose 6% in 2021, leading to an 18% jump in revenues, efforts to reward shareholders are encouraging. In February, CSX hiked its dividend by 7.5%.
 

The company returned over $3.7 billion to shareholders via dividends and share buybacks. However, supply chain disruptions are hurting CSX’s operations. Weakness in the merchandise segment due to lower automotive volumes is concerning. High costs, primarily due to escalating fuel expenses, pose a threat to CSX’s bottom line. The company’s high capital expenditures are also worrisome.

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

Other noteworthy reports we are featuring today include PetroChina Company Limited (PTR), Northrop Grumman Corporation (NOC), and The Kraft Heinz Company (KHC).
 
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>>>