The Zacks Analyst Blog Highlights: PayPal, Netflix, USB, AXP and MUFG

Zacks Equity Research
·5-min read

For Immediate Release

Chicago, IL – August 13, 2020 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include PayPal Holdings PYPL, Netflix NFLX, U.S. Bancorp USB, American Express AXP and Mitsubishi UFJ Financial Group MUFG.

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for PayPal, Netflix and U.S. Bank

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 Holdings, Netflix and U.S. Bancorp. 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 shares have outperformed the Zacks Internet Software industry year to date (+74.7% vs. +51.6%) on the back of accelerating transaction revenues that appear to be sustainable. However, increasing credit loss reserves owing to macroeconomic projections on account of coronavirus is a risk.

PayPal reported impressive second quarter results wherein both earnings and revenues surpassed the estimates and improved year over year. Robust growth in total payments volume (TPV) owing to increasing net new active accounts drove the top line.

Moreover, strengthening customer engagement on the company’s platform and Honey buyout benefits were positive. Further, strong performance by Venmo and merchant services contributed well to the TPV growth. Additionally, growing momentum of the company’s core peer to peer and PayPal Checkout experiences was a tailwind.

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

Shares of Netflix have gained +22.4% over the past six months against the Zacks Broadcast Radio and Television industry’s rise of +1.4%. The Zacks analyst believes that the company is dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint.

Notably, shares have outperformed the industry on a year-to-date basis. However, Netflix expects subscriber growth to decline in the second half of 2020 due to less demand. Moreover, absence of new seasons of popular shows like Money Heist and Stranger Things is expected to affect subscriber growth.

Additionally, rising competition from Apple TV+, Amazon prime video, HBO Max, Disney+, TikTok is a major headwind. Netflix’s leveraged balance sheet and higher streaming obligation is a concern.

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

U.S. Bancorp shares have gained +31.5% over the past three months against the Zacks Major Banks industry’s rise of +25.1%. The Zacks analyst believes that diversified product mix and rise in revenues will support U.S. Bancorp’s growth opportunities. Also, rising loan and deposit balances are slated to benefit from the economic recovery.

Second-quarter results reflect higher fee income, rise in provisions and strong capital position. Solid business model, core franchise and diverse revenue streams are likely to support its performance. Also, rising loans and deposit balance keep the bank well-poised to undertake strategic initiatives.

Further, following the 2020 stress test results, U.S. Bancorp decided to maintain the dividend amount. Yet, consistently rising expenses due to the ongoing investments in technology remains concerning. Also, pressure on net interest margin due to a decline in interest rates might deter top-line expansion.

(You can read the full research report on U.S. Bancorp here >>>)

Other noteworthy reports we are featuring today include American Express and Mitsubishi UFJ Financial Group.

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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

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U.S. Bancorp (USB) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Mitsubishi UFJ Financial Group, Inc. (MUFG) : Free Stock Analysis Report
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