Wednesday, December 21, 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 Linde plc (LIN), BP p.l.c. (BP) and PayPal Holdings, Inc. (PYPL). 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 Linde, the maker of industrial gases, have held up better than the peer group as well as the broader market. The stock is down -5% this year vs. the decline of -8.2% for the Zacks Diversified Chemicals industry and -7.3% decline for the Zacks Basic Materials sector.

Driving the stock's momentum is the wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.

Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. The firm reported strong third-quarter results, owing to increased prices and volumes across all end markets, except for healthcare.

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

BP shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+28.9% vs. +15.9%). The company has a strong portfolio of upstream projects, backing impressive production growth. BP boasted that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key projects was met successfully.

It set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. Although there is no production from its Russia incorporated joint ventures, BP is projecting higher upstream volumes this year. Before reporting its December-quarter results, the energy major is willing to complete an additional $2.5 billion in share buy-backs.

However, the leading integrated energy company’s balance sheet is considerably more levered than most peers, limiting its financial flexibility. Also, increasing production & manufacturing costs have been affecting the company's income.

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

Shares of PayPal have underperformed the Zacks Internet - Software industry over the past year (-63.6% vs. -62.5%). The company trimmed its guidance for revenue growth in anticipation of an economic downturn, which might slow down consumer spending. This is a major negative. Further, intensifying market competition and foreign exchange headwinds remain risks.

However, PayPal’s third quarter results were driven by strong growth in total payments volume owing to increasing net new active accounts. Strengthening customer engagement was a positive. Strong performance by Venmo contributed well to the TPV growth. The Zacks analyst believe growing transaction revenues are likely to continue driving the top-line growth.

Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. Further, PayPal’s growing traction in the United States remains a major positive. Considering the abovementioned facts, the Zacks analyst expect net revenues in 2022 to rise 8.4% from 2021.

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

Other noteworthy reports we are featuring today include BHP Group Limited (BHP), Air Products and Chemicals, Inc. (APD) and Kimberly-Clark Corporation (KMB).

Director of Research

Sheraz Mian

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>>>