Friday, March 19, 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 Holdings (PYPL), Wells Fargo (WFC), and Lockheed Martin (LMT). 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 been under pressure lately as interest rates have moved up, but they have outperformed the Zacks Internet Software industry over the past year (+178% vs. +137.8%). 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. Furthermore, 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.

Also, well-performing merchant services are a positive. However, increasing credit loss reserves owing to macroeconomic projections on account of coronavirus is a serious matter of concern.

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

Wells Fargo shares have gained +65.3% over the last six months against the Zacks Major Regional Banks industry’s gain of +62.4%, as the interest rate backdrop has finally become favorable for the group. The Zacks analyst finds the company's efforts to enhance compliance and risk-management capability, along with streamlining initiatives, encouraging.

Also, strong deposits balance depicts robust liquidity position. The company carries less credit risk in case of any economic downturn. Declining expenses due to its cost savings efforts might support bottom-line growth to an extent.

However, Wells Fargo's revenues remain under pressure due to low rates and volatile fee income trend. Also, legal hassles pose a concern. Further, restrictions on asset growth placed by Federal reserve, has taken a toll on the company's loan growth ability.

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

Shares of Lockheed Martin have gained +0.6% in the past three months against the Zacks Aerospace Defense industry’s gain of +10.9%. The Zacks analyst believes that expansionary U.S. budgetary provisions will immensely boost this defense prime’s business.

Its F-35 program continues to be a key growth driver for the company’s Aeronautics business segment, having added 120 aircraft in 2020. It has a stable liquidity position. However, forced cost reduction initiatives for F-35 program might hamper its operating results.

America and Turkey's tiff on the latter accepting Russian products may hurt Lockheed's component supply from Turkey. Moreover, the company is facing performance issues in relation to some of its products, which in turn may hurt its results.

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

Other noteworthy reports we are featuring today include Intuit (INTU), ConocoPhillips (COP) and Equinix (EQIX).

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

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>>>