Today's Must Read
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Steady Investment & Renewable Focus Aid NextEra Energy (NEE)
Wednesday, May 5, 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 UnitedHealth Group (UNH), PayPal Holdings (PYPL), and NextEra Energy (NEE). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of UnitedHealth have outperformed the Zacks Medical Insurance industry in the last one-year period (+41.5% vs. +37%). The Zacks analyst believes that the company remains well poised to gain from its government business. A sturdy balance sheet and consistent cash flow generation have both contributed to a solid capital position.
Meanwhile, the top line has benefited from new deals, renewed agreements and expansion of service offerings. Its numerous acquisitions also bode well. Further, a strong 2021 view buoys investor optimism on the stock. However, the company is witnessing a slowdown in international and commercial businesses.
PayPal shares have gained +24.6% over the last six months against the Zacks Internet Software industry’s loss of -7.6%. The Zacks analyst believes that PayPal is benefiting from a robust growth in total payments volume on the back of increasing net new active accounts. Further, strengthening customer engagement on the company’s platform is a major positive.
Meanwhile, accelerating transaction revenues are likely to continue driving revenues. However, increasing credit loss reserves due to macroeconomic projections on account of the ongoing pandemic is concerning. Further, intensifying digital payment competition is a risk.
Shares of NextEra have lost -9.3% in the past three months against the Zacks Electric Power industry’s gain of +4.7%. The Zacks analyst believes that NextEra is on course to achieve its long-term growth objectives despite the pandemic, on the back of solid execution of organic projects, expansion of natural gas pipelines and strategic acquisitions.
Also, the company has ample liquidity to meet the current obligations. However, its nature of business is subject to complex federal, state, as well as other regulations. Moreover, if the planned nuclear plant outages last longer, the company’s operations and profitability might be hampered.
Other noteworthy reports we are featuring today include Adobe (ADBE), Thermo Fisher Scientific (TMO) and Anheuser-Busch InBev (BUD).
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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>>>