Top Stock Reports for PayPal, ConocoPhillips & T-Mobile

Monday, July 16, 2018

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), ConocoPhillips (COP) and T-Mobile (TMUS). 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 >>>

PayPal’s shares have outperformed the Zacks Internet Software industry over the last year (+52.8% vs. +35.3%). The Zacks analyst thinks PayPal continues to benefit from its growing number of acquisitions and strategic partnerships with CaixaBank, Bankia, HSBC and Barclays Bank. All these remain positive for its improving customer base.

Additionally, the introduction of new services and offers for the debit and credit card users are helping it to attract new customers to the platform. This will continue to benefit the company’s total payment volume. Further, new agreement with eBay will make PayPal as former’s payment partner, which will help the company to recover what it had lost from the discontinuation of previous partnership between the two companies.

Estimates have been stable lately ahead of the company’s Q2 earnings release. The company has positive record of earnings surprises in recent quarters. However, foreign exchange fluctuations, interest rate risks and intensifying competition are major concerns.

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

Shares of Strong Buy-ranked ConocoPhillips are up +66.8% over the last year, outperforming the Zacks U.S. Integrated Oil industry, which has gained +44% over the same period. ConocoPhillips is one of the largest exploration and production players in the world based on proved reserves and production.

The Zacks analyst likes the company’s initiative to divest non-core assets as the explorer could divert the proceeds toward oil-rich Eagle Ford shale, Delaware basin and Bakken shale. In fact, there are significant opportunities for the firm in the Eagle Ford where it owns about 3,400 undrilled locations. Strong focus on these prospective resources is expected to help ConocoPhillips achieve its target of 22% compound annual growth rate (CAGR) of production through 2017 to 2020.

The oil and gas explorer is also strongly committed toward returning cash to stockholders as reflected by the firm’s decision to boost the 2018 share buyback plan to $3 billion from the prior projection of $2 billion.

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

T-Mobile’s shares have outperformed the Zacks National Wireless industry over the last three months, losing -2.1% vs. -2.5%. T-Mobile has rolled out 600 MHz wireless spectrum across its footprints and conducted Narrowband Internet of Things tests. T-Mobile and Sprint have agreed to merge.

The Zacks analyst thinks the deal will help accelerate development of faster 5G wireless networks. The combined entity will have about 127 million customers. It will experience the network capacity to rapidly create a nationwide 5G network. T-Mobile’s innovative network expansion methodologies continue to be faster and technologically sounder.

However, a competitive and saturated wireless market and high costs of the low-priced promotional plans remain major headwinds. The company has increased its top-line by adding customers but compromised on its profitability. Industry consolidation and intense competition could limit T-Mobile’s ability to attract and retain customers and may adversely affect its operating results.

(You can read the full research report on T-Mobile here >>>).

Other noteworthy reports we are featuring today include Ecolab (ECL), Zoetis (ZTS) and PACCAR (PCAR).

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Mark Vickery

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>>>

Today's Must Read

PayPal (PYPL) Rides on Acquisitions Amid Rising Competition

ConocoPhillips (COP) to Gain on Oil-Rich Eagle Ford Acreage

Network Density & Sprint Deal Aid T-Mobile (TMUS), Opex Ails

Featured Reports

Global Institutional Unit Aids Ecolab (ECL) Amid Competition

The Zacks analyst is apprehensive about cutthroat competition in the MedTech space that mars prospects for the company.

Zoetis' (ZTS) Wide Animal Portfolio Strong Amid Competition

Per the Zacks analyst, Zoetis' companion animal business driven by higher sales of Apoquel and Simparica should maintain growth amid competition.

Spirit's (SAVE) Expansion Efforts Impress Amid High Costs

Though encouraged by the company's efforts to expand its presence, the Zacks analyst is concerned about the high labor and fuel costs, which are limiting bottom-line growth.

BlackBerry (BB) Benefits From Software Sales, R&D Cost Hurts

Per the Zacks analyst, solid software and services billing growth driven by demand for security-focused products will boost BlackBerry's cash flow, although high R&D costs remain an impediment.

Solid Membership Aids Molina Healthcare (MOH), High Costs Ail

Per the Zacks analyst, constant membership growth through new health plans and development of current ones has driven the performance.

Alexandria (ARE) to Grow on Life-Science Asset Acquisitions

Per the Zacks analyst, Alexandria's buyout of premium life-science assets bodes well amid robust fundamentals in the industry.

Martin Marietta (MLM) Rides on Higher Construction Activity

The Zacks analyst stresses, increased activities in the non-residential and residential markets are expected to boost demand for Martin Marietta's product.

New Upgrades

Dividends, Buybacks & Acquisitions Buoy Wabtec (WAB)

The Zacks analyst is positive on the company's growth-by-acquisition strategy. The company's efforts to reward investors through dividends and buybacks are also encouraging.

PACCAR (PCAR) Rides on Growing Demand for Class 8 Trucks

Per the Zacks analyst, rising demand for Class 8 trucks due to robust economy, high consumer spending and strong freight demand will drive PACCAR's truck retail sales.

Hess Corporation (HES) Banks on Offshore Guyana Oil Finds

The Zacks analyst believes that world-class discoveries made in the offshore Guyana resources will boost Hess' crude production.

New Downgrades

Low Meat-Based Protein Demand to Hit Pilgrim's Pride (PPC)

Per the Zacks analyst, Pilgrim's Pride sales are likely to be hit by soft demand for meat-based protein products due to organic alternatives. USDA projects lower growth for U.S. chicken space in 2018.

Rising Expenses, High Debt Ail CNH Industrial (CNHI)

Per the Zacks analyst, increase in expenses due to higher raw material costs and research and development expenses will hurt CNH Industrial's margin. Rising debt level is also a concern.

Infineon (IFNNY) Hurt by Higher Investments & Competition

Per the Zacks analyst, Infineon is having a tough time, given the requisite of large capital investments to maintain a competitive cost position. Also, stiff competition from peers is a major concern.

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Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
PACCAR Inc. (PCAR) : Free Stock Analysis Report
 
Ecolab Inc. (ECL) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
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