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

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.

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>>>