NOC

Northrop Grumman Corporation

463.70
USD
1.64%
463.70
USD
1.64%
344.89 492.30
52 weeks
52 weeks

Mkt Cap 74.24B

Shares Out 160.11M

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Top Analyst Reports for PayPal, Zoetis & CSX

Thursday, April 14, 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 PayPal Holdings, Inc. (PYPL), Zoetis Inc. (ZTS), and CSX Corporation (CSX). 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 declined -61.8% over the past year against the Zacks Internet - Software industry’s decline of -47.3% as sentiment has soured on growth stocks whose full profitability is way out in the future in a rising interest rate environment. The Zacks analyst points out to intensifying competition in the digital payment market as a headwind for the company’s market position. However, PayPal continues to benefit from robust growth in total payments volume owing to increasing net new active accounts. Further, strengthening customer engagement on the company’s platform is a major positive. Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts growth. Additionally, solid momentum of core peer to peer and PayPal Checkout experiences is a tailwind. (You can read the full research report on PayPal here >>>) Shares of Zoetis have outperformed the Zacks Medical - Drugs industry over the past year (+14.2% vs. -22.4%). The Zacks analyst believes that an innovative portfolio of petcare parasiticides, including Simparica Trio and dermatology products (Apoquel and Cytopoint) will help the company’s continued momentum. The uptake of Librela and Solensia, its new monoclonal antibody (mAb) therapies for osteoarthritis (OA) pain in dogs and cats, is encouraging in Europe and should boost growth. Zoetis’ companion animal portfolio maintains momentum. The launch of innovative products (ProHeart, Librela, Revolution Plus and many vaccines) bolstered the portfolio and should fuel growth in the upcoming quarters. However, the livestock portfolio has been affected by generic competition across cattle, poultry, swine, and dairy consumer markets in the United States. Pricing pressure will continue to hurt sales, which is a woe. (You can read the full research report on Zoetis here >>>) Shares of CSX have outperformed the Zacks Transportation - Rail industry over the past year (+7.7% vs. +4.9%). The Zacks analyst believes that due to healthy freight environment, CSX is benefiting from higher export coal volumes, international intermodal shipments, and pricing gains. The company’s Volumes rose 6% in 2021, leading to an 18% jump in revenues, efforts to reward shareholders are encouraging. In February, CSX hiked its dividend by 7.5%. The company returned over $3.7 billion to shareholders via dividends and share buybacks. However, supply chain disruptions are hurting CSX’s operations. Weakness in the merchandise segment due to lower automotive volumes is concerning. High costs, primarily due to escalating fuel expenses, pose a threat to CSX’s bottom line. The company’s high capital expenditures are also worrisome. (You can read the full research report on CSX here >>>) Other noteworthy reports we are featuring today include PetroChina Company Limited (PTR), Northrop Grumman Corporation (NOC), and The Kraft Heinz Company (KHC). 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>>> Today's Must Read Featured Reports Applied Materials (AMAT) Rides on Foundry & Logic Spending Per the Zacks analyst, solid customer spending in foundry and logic which is required in IoT, communications, 5G, automotive, power and sensor applications is benefiting Applied Materials. Order Growth Aids Northrop Grumman (NOC), COVID Impacts Woe Per the Zacks Analyst, solid order flow for its products bolsters Northrop Grumman revenue growth prospects. Yet, COVID induced supply chain shortages might hurt the stock's results. Kraft Heinz (KHC) Benefits From Strategic Pricing Efforts Per the Zacks analyst, Kraft Heinz has been benefiting from solid pricing action. In fourth-quarter 2021, the company's pricing rose 3.8% year over year with growth in all reporting segments. D.R. Horton's (DHI) Backlog to Spur Growth Amid Rising Costs D.R. Horton to gain from its robust backlog, industry-leading market share, acquisitions and focus on more entry-level affordable homes, per the Zacks analyst. Rising land/labor costs are concerns. Solid Commercial Lines Aid Cincinnati Financial (CINF) Per the Zacks analyst, Cincinnati Financial is poised to grow on the strength of Commercial Lines segment as well as price rise and a higher level of insured exposures. Revenue-Enhancing Initiatives Support Comerica (CMA), Costs Up Per the Zacks analyst, Comerica's revenues and efficiency initiatives are likely to boost its financials. However, lack of diversification in its loan portfolio and rising costs ail. Pure Storage (PSTG) Benefits from Robust Product Portfolio Per the Zacks analyst, Pure Storage's strong portfolio of solutions like Pure as-a-Service and Evergreen Storage is driving the performance. Supply chain woes and stiff competition remain concerns. New Upgrades PetroChina (PTR) to Benefit from Natural Gas Business The Zacks analyst believes that PetroChina's natural gas business offers lucrative growth prospects in the coming years as China moves from coal to the cleaner fuel for environmental reasons. Higher Nitrogen Demand and Prices Aid CF Industries (CF) Per the Zacks analyst, CF Industries will gain from higher demand for nitrogen fertilizers in major markets. Higher nitrogen prices amid lower supply availability will also drive its margins. Leer Mine, Long-term contracts Aid Arch Resources (ARCH) Per the Zacks analyst Arch Resources will gain from its long-term contracts, while low-cost met coal production from Leer South longwall will ensure supply of high grade coking coal to global markets. New Downgrades CarMax (KMX) Hurt by High SG&A Costs & Debt Pile Rising SG&A expenses amid digitization and store expansion efforts are likely to strain near-term cash flows and deteriorate CarMax's already weak balance sheet, per the Zacks analyst. Limited Commercial Sales Expertise Ails Inari Medical (NARI) The Zacks analyst is worried about Inari Medical's limited sales expertise as it has not been operational as a commercial company. Dependency on product adoption is an added issue. USA Compression (USAC) Wrecked by Massive Debt Burden The Zacks analyst believes that USA Compression Partners' high debt-to-capitalization of 77.3% is a concern, as it restricts the partnership's financial freedom to tap into growth opportunities. Just Released: Zacks Top 10 Stocks for 2022 In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022? From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab. See Stocks Now >> Click to get this free report Northrop Grumman Corporation (NOC): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report PetroChina Company Limited (PTR): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report Zoetis Inc. (ZTS): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report The Kraft Heinz Company (KHC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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