Top Research Reports for Walt Disney, Broadcom & PayPal

Friday, October 28, 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 The Walt Disney Company (DIS), Broadcom Inc. (AVGO) 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 >>>

Walt Disney’s shares have declined -32.6% over the year-to-date period against the Zacks Media Conglomerates industry’s decline of -30.2%. The Zacks analyst believes that Disney+’s profitability in recent times was negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.

However, the company continues to benefit from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base. Theme Park business is likely to gain from strong demand across both the domestic and international parks.

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

Shares of Broadcom have declined -31.5% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s decline of -40.4%. The Zacks analyst believes that increasing competition, along with high debt levels, are persistent overhangs. But Broadcom did report impressive third-quarter fiscal 2022 results. Top-line growth was driven by strength in cloud and service provider segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth.

Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. An upbeat fourth-quarter fiscal 2022 guidance is encouraging. The VMware acquisition will aid prospects over the long term.

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

Shares of PayPal have outperformed the Zacks Internet - Software industry over the past three-month period (+0.9% vs. -16.7%). The Zacks analyst believes that PayPal is benefiting from growing total payments volume owing to increasing net new active accounts. Strengthening customer engagement on the company’s platform is a major positive. Further, Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts growth.

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 >>>)

Other noteworthy reports we are featuring today include Becton, Dickinson and Company (BDX), Valero Energy Corporation (VLO), and Norfolk Southern Corporation (NSC).

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>>>

Today's Must Read

Disney+ Growth & Revival of Parks Business Aids Disney (DIS)

Strong Demand for Networking Products Aids Broadcom (AVGO)

PayPal (PYPL) Benefits From Increasing Total Payment Volume

Featured Reports

Dividends Lift Norfolk Southern (NSC) Despite Cost Woes
The Zacks analyst is impressed with the company's efforts to pay out dividends even in the current uncertain scenario. Escalated costs due to high oil price are, however, stunting bottom-line growth.

Fluid & Metering Segment Drives IDEX (IEX), High Costs Ail
Per the Zacks analyst, IDEX will benefit from strength in Fluid & Metering segment, led by demand in the industrial market as well as strength in the energy and infrastructure markets.

General Mills (GIS) Gains From Focus on Accelerate Strategy
Per the Zacks analyst, General Mills is gaining from its Accelerate strategy, as part of which it is competing efficiently via brand building, investing in saving initiatives and reshaping portfolio.

Several Product Launches Aid BD (BDX) Amid Stiff Competition
The Zacks analyst is upbeat about BD's slew of product launches over the past few months despite its operation in a highly competitive market.

Low Breakeven Costs to Aid Marathon Oil's (MRO) Cash Flows
The Zacks analyst believes that Marathon's extremely low oil price breakeven costs of just $35 a barrel should generate meaningful free cash flows and improve future profitability.n

Improved Bookings Aid Caesars Entertainment (CZR), Traffic low
Per the Zacks analyst, Caesars Entertainment is likely to have benefitted from pent-up demand and solid booking trends in Las Vegas.

Monolithic Power (MPWR) Poised to Gain from 5G-Based Products
Per the Zacks analyst, Monolithic Power is likely to gain from fast 5G rollout driven by a robust portfolio of legacy routers, wireless applications and 5G networking infrastructure-related products.

New Upgrades

Rising Loans & Interest Rates Aid BOK Financial (BOKF)
Per the Zacks analyst, BOK Financial's organic strength is reflected by rising loan balances. Increased margins and net interest revenues on rising interest rates will likely support top-line growth.

Valero (VLO) Gains On Higher Gulf Coast Refinery Throughput
The Zacks analyst is impressed by Valero's Gulf Coast refineries, contributing the most to its total throughput volumes. Higher Gulf Coast export volumes will also support its margins.

Expanding Solar Market to Boost Enphase Energy (ENPH) Growth
Per the Zacks analyst, the expanding solar market that has set the stage for the solar microinverter market's boom tends to benefit Enphase as it remains a leading U.S. manufacturer of microinverters.

New Downgrades

Masco (MAS) Ails From Lower Demand, Higher Operational Costs
Per the Zacks analyst, Masco is witnessing low demand and foreign currency headwinds. Also, freight and material costs, and production and absorption inefficiencies due to changing volume levels ail.

Policy Headwinds, High Debt Levels Impede Navient (NAVI)
Per the Zacks analyst, loan forgiveness plans and high rates are reducing Navient's refinance loan originations. With high debt and limited liquidity, capital deployment plans seem unsustainable.

Assurant (AIZ) Witnesses Cost Woes and Declining Premiums
Per the Zacks analyst, Assurant's high cost due to higher administrative expenses weighs on margin expansion.

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Norfolk Southern Corporation (NSC) : Free Stock Analysis Report
 
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
 
Valero Energy Corporation (VLO) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Broadcom Inc. (AVGO) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
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