Today's Must Read
ExxonMobil (XOM) Guyana Oil Finds to Generate Huge Cash Flow
Business Diversification & Cost Control Benefits Goldman (GS)
Thursday, January 14, 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 PayPal (PYPL), Exxon Mobil (XOM) and Goldman Sachs (GS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
PayPal shares have outperformed the Zacks Internet Software industry over the past year (+113.2% vs. +96.6%) on the back of 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. Furthermore, Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts. Additionally, growing momentum of core peer to peer and PayPal Checkout experiences is a tailwind.
Also, benefits from Honey buyout 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.
Shares of Exxon Mobil have gained +8.5% in the last six months against the Zacks Integrated International Oil industry’s gain of +11.5%. The Zacks analyst believes that ExxonMobil can combat the coronavirus pandemic-induced volatile crude pricing environment since it can rely on its balance sheet, which has significantly lower debt exposure.
The company has recently chalked out a new five-year program to lower greenhouse gas emissions. The target for elimination of routine flaring in the next decade is another plan which the firm said will align with the initiative of World Bank.
ExxonMobil’s bellwether status in the energy space, optimal integrated capital structure that has historically produced industry-leading returns and management’s track record of capex discipline across the commodity price cycle makes it a relatively lower-risk energy sector play.
Goldman Sachs shares have gained +45.2% over the past three months against the Zacks Financial - Investment Bank industry’s rise of +44.8%. The Zacks analyst believes that business diversification helps Goldman sustain growth. The company’s cost management efforts continue to support bottom line growth.
Earnings estimate have been revised upward prior to the fourth-quarter earnings release. The company has a decent earnings surprise history, outpacing the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. The company’s cost management efforts continue to support bottom line growth.
Moreover, with strong liquidity, Goldman carries a low credit risk in case of any economic downturn. Though, legal issues, high dependence on overseas revenues and volatile client-activity might impede top-line growth, steady capital deployment activities keep us encouraged.
Other noteworthy reports we are featuring today include Charter Communications (CHTR), Southern (SO) and Biogen (BIIB).
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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>>>