Monday, May 24, 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 Walmart Inc. (WMT), PayPal Holdings, Inc. (PYPL), and Comcast Corporation (CMCSA). 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 >>>
 

Shares of Walmart have modestly outperformed the Zacks Retail - Supermarkets industry in the last three-month period (+7.3% vs. +7.0%). The Zacks analyst believes that Walmart is gaining on rising demand for essentials amid the pandemic. Stay-at-home trends are also boosting e-commerce sales, which increased across all units in first-quarter fiscal 2022.
 

During the quarter, the top and bottom lines grew year over year, with U.S. comp sales rising for the 27th straight time. With curbs being lifted, the company’s U.S. store environment is in good shape, while e-commerce also remains on the growth trajectory. To this end, Walmart’s efforts to enhance deliveries are also noteworthy. Encouragingly, management raised its guidance for fiscal 2022.
 

However, the second-quarter earnings view suggests a decline, due to divestitures related to the International unit. Additionally, management expects supply-chain hiccups and wage cost inflation.
 

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

Shares of PayPal have outperformed the Zacks Internet - Software industry in the last one-year period (+66.2% vs. +35.3%). In fact, the company reported strong first quarter results wherein both earnings and revenues grew year over year. Robust growth in total payments volume owing to increasing net new active accounts drove the top line.
 

Moreover, strengthening customer engagement was a positive. Further, strong performance by Venmo and merchant services contributed well to the TPV growth. Additionally, boom in digital payment owing to the coronavirus pandemic, remained a tailwind.
 

The Zacks analyst believes that growing transaction revenues of the company are likely to continue driving the top-line growth. Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. However, intensifying competition in the digital payment market poses a serious risk to the company’s market position. Also, foreign exchange headwinds remain concerns.
 

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

Shares of Comcast have gained +42.2% over the past year against the Zacks Cable Television industry’s gain of +36.0%. The Zacks analyst believes that the company is benefiting from solid high-speed Internet customer wins as reflected by its first-quarter results. Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience.
 

Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business. Its streaming service Peacock has gained significant tract within a short span of time and is a key catalyst in driving broadband sales.
 

However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Theme park revenues are expected to suffer from lower footfall. Further, weakness in film business is also a headwind. Moreover, a leveraged balance sheet is a concern.
 

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

Other noteworthy reports we are featuring today include The Boeing Company (BA), HSBC Holdings plc (HSBC) and Target Corporation (TGT).
 

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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>>>