Friday, October 28, 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 The Walt Disney Company (DIS), Broadcom Inc. (AVGO) 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 >>>
 

Walt Disney’s shares have declined -32.6% over the year-to-date period against the Zacks Media Conglomerates industry’s decline of -30.2%. The Zacks analyst believes that Disney+’s profitability in recent times was negatively impacted by higher programming and production costs across Disney+, ESPN+ and Hulu. Disney’s leveraged balance sheet remains a concern.
 

However, the company continues to benefit from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering. Availability in the Nordics, Latin America and other Asian territories is helping it expand its user base. Theme Park business is likely to gain from strong demand across both the domestic and international parks.
 

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

Shares of Broadcom have declined -31.5% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s decline of -40.4%. The Zacks analyst believes that increasing competition, along with high debt levels, are persistent overhangs. But Broadcom did report impressive third-quarter fiscal 2022 results. Top-line growth was driven by strength in cloud and service provider segments. Networking is riding on strong adoption of Broadcom’s next-gen merchant switching and routing solutions by hyperscalers, enterprises and service providers. Aggressive adoption of its next-generation server storage solutions by hyperscalers is expected to drive top-line growth.
 

Broadcom expects fiscal fourth-quarter networking and server storage revenues to grow 30% and 45% on a year-over-year basis, respectively. An upbeat fourth-quarter fiscal 2022 guidance is encouraging. The VMware acquisition will aid prospects over the long term.
 

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

Shares of PayPal have outperformed the Zacks Internet - Software industry over the past three-month period (+0.9% vs. -16.7%). The Zacks analyst believes that PayPal is benefiting from growing total payments volume owing to increasing net new active accounts. Strengthening customer engagement on the company’s platform is a major positive. Further, Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts growth.
 

However, intensifying competition in the digital payment market poses a serious risk to the company’s market position. Also, foreign exchange headwinds remain concerns.
 

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

Other noteworthy reports we are featuring today include Becton, Dickinson and Company (BDX), Valero Energy Corporation (VLO), and Norfolk Southern Corporation (NSC).
 

Sheraz Mian
 

Director of Research
 

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>>>