Yahoo Finance Top Analyst Reports for Linde, BP & PayPal
Wednesday, December 21, 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 Linde plc (LIN), BP p.l.c. (BP) 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 >>>
Shares of Linde, the maker of industrial gases, have held up better than the peer group as well as the broader market. The stock is down -5% this year vs. the decline of -8.2% for the Zacks Diversified Chemicals industry and -7.3% decline for the Zacks Basic Materials sector.
Driving the stock's momentum is the wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals. Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics.
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. The firm reported strong third-quarter results, owing to increased prices and volumes across all end markets, except for healthcare.
(You can read the full research report on Linde here >>>)
BP shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+28.9% vs. +15.9%). The company has a strong portfolio of upstream projects, backing impressive production growth. BP boasted that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key projects was met successfully.
It set an aggressive energy transition plan to capitalize on the mounting demand for clean energy. Although there is no production from its Russia incorporated joint ventures, BP is projecting higher upstream volumes this year. Before reporting its December-quarter results, the energy major is willing to complete an additional $2.5 billion in share buy-backs.
However, the leading integrated energy company’s balance sheet is considerably more levered than most peers, limiting its financial flexibility. Also, increasing production & manufacturing costs have been affecting the company's income.
(You can read the full research report on BP here >>>)
Shares of PayPal have underperformed the Zacks Internet - Software industry over the past year (-63.6% vs. -62.5%). The company trimmed its guidance for revenue growth in anticipation of an economic downturn, which might slow down consumer spending. This is a major negative. Further, intensifying market competition and foreign exchange headwinds remain risks.
However, PayPal’s third quarter results were driven by strong growth in total payments volume owing to increasing net new active accounts. Strengthening customer engagement was a positive. Strong performance by Venmo contributed well to the TPV growth. The Zacks analyst believe growing transaction revenues are likely to continue driving the top-line growth.
Also, solid momentum across peer to peer and PayPal Checkout experiences is a tailwind. Further, PayPal’s growing traction in the United States remains a major positive. Considering the abovementioned facts, the Zacks analyst expect net revenues in 2022 to rise 8.4% from 2021.
(You can read the full research report on PayPal here >>>)
Other noteworthy reports we are featuring today include BHP Group Limited (BHP), Air Products and Chemicals, Inc. (APD) and Kimberly-Clark Corporation (KMB).
Director of Research
Sheraz Mian
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
Linde's (LIN) Contracts With Minimum Volume Requirements Aid
BP to Benefit From Renewable Energy Project in Australia
PayPal (PYPL) Benefits From Increasing Total Payment Volume
Featured Reports
Project Investments, Productivity to Aid Air Products (APD)
While Air Products faces headwinds from higher power and fuel costs, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.n
Kimberly-Clark's (KMB) Cost-Cutting Aid Amid Rising Inflation
Per the Zacks analyst, Kimberly-Clark has been taking robust steps to lower costs amid inflationary pressure. The company generated savings of $80 million from the FORCE program in the third quarter.
Land Acquisition Move Aid PulteGroup (PHM), Slow Demand Ail
Per the Zacks analyst, land acquisition strategies and focus on entry-level buyers bode well for PulteGroup amid slow demand due to higher mortgage rates, supply-chain issues and rising inflation.
Renewable Initiatives Aid AES Amid Declining Price Issue
Per the Zacks analyst, AES Corp is investing heftily in clean energy to boost its renewable generation portfolio. Yet, declining wholesale price of electricity can hurt the stock
Expeditors (EXPD) Rides on Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Expeditors. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Intra-Cellular (ITCI) Sole Drug Caplyta Aid Growth Amid Rivalry
Per the Zacks analyst, Intra-Cellular's sole drug, Caplyta is driving the top-line. The drug's label expansion studies also hold promise. However, heavy dependence on Caplyta for growth remains a woe.
Solid Product Suite Aid NextGen (NXGN) Amid Stiff Competition
The Zacks analyst is upbeat about NextGen's robust product portfolio despite its operation in a highly competitive market.
New Upgrades
Investment in Growth Projects to Aid BHP Group (BHP)
The Zacks analyst appreciates BHP's focus on investing in commodities that will help it ride on growing global trends such as decarbonization as well as its efforts to make operations more efficient.
Arista (ANET) Rides on Software-Driven, Data-Centric Model
Per the Zacks analyst, Arista is likely to benefit from scalable infrastructure, a software-driven and data-centric approach to help customers build cloud architecture and enhance cloud footprint.
Patterson-UTI (PTEN) to Gain from Proprietary Apex Rigs
The Zacks analyst believes that Patterson-UTI Energy's technologically-advanced Apex rigs help it to consolidate activity levels and maintain strong margins.
New Downgrades
Rising Costs, Poor Asset Quality Hurt Ally Financial (ALLY)
Per the Zacks analystp, elevated costs due to Ally Financial's efforts to launch products and grow inorganically will hurt profits. Deteriorating asset quality due to rising provisions is another woe.
Supply Chain Issues to Mar Whirlpool's (WHR) Performance
Per the Zacks analyst, Whirlpool has been witnessing high raw material costs and supply chain issues, which have resulted in higher freight costs. This is likely to persist in the first half of 2023.
Declining Admissions Hurt Revenues at Tenet Healthcare (THC)
Per the Zacks Analyst, the company's revenues are likely to remain strained due to a decrease in adjusted admissions. A fall in cash balance remains a concern.
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Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
KimberlyClark Corporation (KMB) : Free Stock Analysis Report
Linde plc (LIN) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
