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Research Daily

Monday, July 29, 2019

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 Alphabet (GOOGL), Intel (INTC) and PayPal (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 >>>

Alphabet’s shares have gained +1.2% in the past one year, outperforming the Zacks Internet Services industry's decline of -14.9%. Alphabet reported strong second-quarter results driven by strength in advertising and cloud businesses.

The Zacks analyst thinks its strong focus on bolstering its presence in the cloud market on the back of expanding data centers and robust cloud offerings continues to aid growth. Its strong initiatives toward elimination of bad ads and introducing useful major search updates are tailwinds. Further, Google’s robust mobile search is also a positive.

Google’s strong focus on the innovation of its AI techniques and home automation space is aiding its business growth. However, the company’s growing litigation issues, rising competition and increased spending on YouTube and consumer gadgets might hurt its profitability.

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

Shares of Intel have outperformed the Zacks General Semiconductor industry in the past year, gaining +8.2% vs. a decline of -1.8%. Intel reported stellar second-quarter results and provided encouraging third-quarter guidance.

The Zacks analyst thinks the company is benefiting from rising demand for its higher performance products, both in data center and client domains. Moreover, synergies from Mobileye acquisition and growing clout in ADAS market favor the company’s growth prospects. Further, Intel’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is yielding results.

Notably, Intel recently announced that Apple is likely to acquire its failed 5G smartphone modem business. However, weakness in from China and softness in NAND flash pricing trends, expenses pertaining to 10-nanometer (nm) ramp and constrained supply remain major concerns.

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

PayPal’s shares have outperformed the Zacks Internet Software industry in the past year (+40.1% vs. +26.5%). PayPal reported mixed second quarter results with earnings surpassing estimates while revenues missed the same. However, both top-line as well as bottom line reflected year over year growth on the back of benefits from investment in MercadoLibre and increasing customer engagements on PayPal’s platform.

Further, robust growth in total payments volume owing to Venmo and One Touch also lifted performance. The Zacks analyst thinks growing momentum of the company’s core peer to peer and merchant services are a major positive.

However, weak eBay performance remains a headwind for the company’s total payment volume. Negative impact of sale of the U.S. consumer credit receivables portfolio to Synchrony is a risk to the company’s top-line growth.

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

Other noteworthy reports we are featuring today include 3M (MMM), Starbucks (SBUX) and Stryker (SYK).

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Senior Editor

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>>>

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