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Top Stock Reports for Nike, PayPal & BNY Mellon

Top Stock Reports for Nike, PayPal & BNY Mellon

Wednesday, December 20, 2017

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 Nike (NKE), PayPal (PYPL) and BNY Mellon (BK). 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 >>>

Nike’s shares have outperformed the Zacks Shoes and Retail Apparel industry over the last one year (+22.8% vs. +22.4%), driven by strength in international business and the global Nike Direct business. Also, Nike has been focused on its Consumer Direct Offense plan.

Driven by its Triple Double strategy, this restructuring plan focuses on using digital methods for rapid innovation and product development, along with strengthening consumer relations by operating through core regions. It also has a positive record of earnings surprises in the recent quarters.

However, lackluster sales trend in the company’s key North American market remains a headwind. Also, gross margin in the last quarter was hurt by currency woes and a higher mix of off-price sales. Further, management anticipates near-term results to be hurt by the tough retail environment, which led to a bleak second quarter view. Nevertheless, second-quarter estimates have been stable ahead of the earnings release.

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

Shares of Buy-rated PayPal have outperformed the Zacks Internet Software industry in the year to date period (+88.8% vs. +32.9%). PayPal is currently riding on partnerships and mobile centrism. The company continues to perform strongly in global payments, especially mobile. PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.

It recently extended its partnership with Mastercard in Europe, Latin America, Canada, Africa, the Caribbean and the Middle East. Partnerships with Google, Facebook, Pinterest, Alibaba, Intuit and other major retailers and financial institutions are also delivering positive results. However, continuous exposure to foreign exchange and interest rate risks are concerns.

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

Buy-rated BNY Mellon’s shares have underperformed the Zacks Major Regional Banks industry in the last six months (+9.3% vs. +16.9%). The company’s earnings have surpassed expectations in two of the trailing four quarters. Easing margin pressure (driven by gradual rise in interest rates) and rising loan demand are expected to further aid revenue growth.

Also, potential lesser regulations and cost-saving initiatives will likely drive profitability. Given a solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities. However, concentration risk arising from significant dependence on fee-based income remains a matter of concern in the near term.

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

Other noteworthy reports we are featuring today include PPG Industries (PPG), Intuitive Surgical (ISRG) and CME Group (CME).

5 Medical Stocks to Buy Now

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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

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

Nike (NKE) Suffers on Lackluster Sales in North America

PayPal (PYPL) Continues to Ride High on Strategic Deals

Higher Rates, Cost Cutting Efforts Aid BNY Mellon (BK)

Featured Reports

Nektar (NKTR) Boasts Strong Pipeline, Competition Intense

Per the Zacks analyst, Nektar has a strong pipeline, with many updates lined up. However, it's PEGylation platform faces strong competition which may hamper the company's prospects in the near-term.

Solid Jet Demand Aids Spirit AeroSystems (SPR), Rivalry Ails

Per the Zacks analyst, solid demand for commercial jets is boosting Spirit AeroSystems' growth in aerostructures manufacturing space. Yet the intense rivalry it faces may push up its revenue costs.

McDermott's (MDR) Chicago Bridge Buy Bolsters Onshore Focus

While the $6 billion Chicago Bridge buy will add onshore services to McDermott's offshore-focused portfolio, the Zacks analyst is worried about increase in the combined company's debt load.

Volume Growth Aids Kansas City Southern (KSU) Amid Cost Woes

The Zacks analyst likes the growth in overall carload volumes. Improvement in operating ratio is also a positive for the company.

Crown Holdings' (CCK) Buyout of Signode to Fuel Cash Flow

Per the Zacks analyst, the buyout deal of Signode will significantly boost Crown Holdings' free cash flow and add a portfolio of protective packaging franchises to metal packaging business.

da Vinci X Boosts Intuitive Surgical (ISRG) amid Forex Woes

Per the Zacks analyst, da Vinci X robotic platform has been boosting Intuitive Surgical's growth trajectory for long.

Derivative Product Lines Aid CME Group (CME), High Costs Ail

Per the Zacks analyst, CME Group's emphasis on expansion of derivative product lines will drive growth.

New Upgrades

Loan Growth, Easing Margins Aid Webster Financial (WBS)

Per Zacks analyst, Webster Financial's organic strength is reflected by rising loans and deposits balances. Also, easing margin pressure on rising interest rates is likely to support top line growth.

Stone Energy (SGY) to Grow on Offshore Zama Oil Discovery

The Zacks analyst believes that attractive and economically-viable oil reserves in the offshore Zama-1 exploration well will drive Stone Energy's future production.

Strong Diagnostics Business, Buyouts to Aid Snap-On (SNA)

The Zacks analyst believes that robust diagnostics and repair information products business, and accretive acquisitions like Norbar Torque & Car-O-Liner will continue to lend momentum to Snap-On.

New Downgrades

Arconic (ARNC) Hurt by Hefty LIFO Charges, Pricing Woes

Per the Zacks analyst, Arconic faces earnings headwind from sizable charges related to LIFO (last-in, first-out) method of accounting. It is also exposed to pricing pressure in GRP and EPS segments.

High Raw Material Costs, Hurricanes Hit PPG Industries (PPG)

Per the Zacks analyst, PPG Industries is exposed to raw materials cost inflation and headwinds from unfavorable impacts of hurricanes, which may continue to affect its margins in Q4.

Lackluster North America Sales Weigh on Under Armour (UAA)

Per the Zacks analyst, dismal North American business remains a drag for Under Armour's top line. This has compelled management to trim full year sales view to low-single digit growth from 9-11%.


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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
 
Nike, Inc. (NKE) : Free Stock Analysis Report
 
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
 
CME Group Inc. (CME) : Free Stock Analysis Report
 
Bank Of New York Mellon Corporation (The) (BK) : Free Stock Analysis Report
 
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