Today's Must Read
Solid Adoption of Cloud Solutions Aids IBM Amid High Debt
Solid Health Care Products Unit Aid Fresenius Medical (FMS)
Wednesday, April 22, 2020
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 (PYPL), International Business Machines (IBM) and Fresenius Medical Care (FMS). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
PayPal’s shares have outperformed the Zacks Internet Software industry over the past six months (+15.6% vs. +7.7%). The Zacks analyst believes that PayPal’s portfolio strength remains its key catalyst. Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding total active accounts.
Further, robust mobile checkout services of One Touch are contributing to the company’s total payment volume growth. Growing momentum across core peer to peer is also aiding in acceleration of payment volume. Additionally, the company is benefiting from well-performing core PayPal and Braintree. Positive contributions from Hyperwallet buyout are tailwinds.
However, eBay’s managed payments transition remains a concern. Moreover, declining eBay volume remains a headwind for the company’s TPV. Moreover, PayPal anticipates Honey and GoPay buyouts to limit earnings growth in 2020.
Shares of IBM have lost -14.9% over the past year against the S&P 500’s fall of -7.2%. The Zacks analyst believes that growing clout of Watson Health and growth in Payer, Provider, Imaging and Life Sciences verticals are noteworthy. Also, gains from z15 hold promise.
IBM’s Q1 earnings and revenues declined year over year. Notably, adoption of cognitive applications and transaction processing platforms in March was affected by the coronavirus outbreak. For 2020, IBM has withdrawn guidance, citing uncertainty pertaining to coronavirus crisis.
Nevertheless, improving position in the hosted cloud, security and analytics domains bodes well. Moreover, Red Hat acquisition has helped IBM to enhance containerized software capabilities and strengthen competitive position in the hybrid cloud market. However, stiff competition in the cloud computing market and high-debt levels remain woes.
Fresenius Medical’s shares have lost -6.7% over the past three months against the Zacks Medical Instruments industry’s fall of -10.5%. The Zacks analyst believes that Fresenius Medical continues to gain from core Health Care Products and Services segments, which witnessed revenue growth in the quarter under review.
Revenues in the North American, EMEA and Asia-Pacific regions also improved. In fact, management remains optimistic about the buyouts of Sound Physicians and NxStage Medical. Furthermore, strong view for 2020 portrays a brighter picture. A wide range of dialysis products and services instills optimism in the stock.
Management expects to undertake meaningful investments in 2020 to capitalize on opportunities and optimize cost base. The company reported strong results in the fourth quarter. However, an intensely competitive dialysis products market and global coronavirus outbreak have added to woes.
Other noteworthy reports we are featuring today include MPLX LP (MPLX), Laboratory Corporation of America (LH) and Insulet (PODD).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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>>>