Technology

The Zacks Analyst Blog Highlights: MGM, Wynn Resorts, Apple, PayPal and Ford

For Immediate Release

Chicago, IL – August 25, 2020 – Zacks.com 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 MGM Resorts International MGM, Wynn Resorts, Limited WYNN, Apple Inc. AAPL, PayPal Holdings, Inc. PYPL and Ford Motor Company F.

Here are highlights from Monday’s Analyst Blog:

3 Robinhood Stocks Investors Will Love Right Now

Free trading app provider Robinhood Markets, Inc. has of late seen increased betting on stocks by millennials, sending its worth higher than traditional gambling companies like MGM Resorts International and Wynn Resorts, Limited. Recently, the company has been able to raise another $200 million in funding, pushing its valuation above $11 billion.

Robinhood, which is rumored to be going public soon, saw an uptick in user count this year with millions of Americans working from home amid the pandemic. In fact, daily average trading revenues, which show how much a company has earned through commissions and fees, more than doubled in the first and second quarter of this year, added Robinhood.

But from an investment perspective, most of the popular stocks on the Robinhood trading platform are highly risky. Notably, airline and cruise stocks are struggling, energy companies remain shaky and biotech remains a speculative trade. What’s more, it has been a crazy year for both traders and investors so far this year. After all, the markets tumbled into bear territory in March, subsequently recovering almost all their losses. In the process, some investors have struggled, while some made fortunes.

Hence, it’s not easy to buy stocks trading on the Robinhood platform. However, here’re three Robinhood darlings that stand out –

Apple

Apple Inc. is one of the Robinhood stocks that have certainly been popular among traders and investors. After all, nearly 731,000 investors on the Robinhood trading platform hold shares of Apple. 

This is because it recently became the first-publicly traded U.S. company to cross the $2-trillion market cap. Apple easily doubled its valuation in just more than two years. It had first reached a $1-trillion market cap on Aug 2, 2018. Notably, it has been enjoying a strong run lately. For instance, the stock has averaged a weekly gain of 3.5% since the beginning of June. What’s more, it has particularly performed well this year, with its stock price gaining more than 50%.

And at an almost $2-trillion valuation, market pundits expect almost nothing to go wrong with this tech behemoth, and are willing to pay a hefty sum for its shares. After all, despite issues, the social-distancing environment will continue to fuel growth in the segment that includes the App Store and Apple Pay. Even though Apple saw widespread retail closures in recent times, work-from-home trends and strong online sales will continue to boost overall operations.

Thus, the Zacks Rank #1 (Strong Buy) company’s expected earnings growth rate for the current and next year is 8.7% and 23.8%, respectively. The Zacks Consensus Estimate for its current-year earnings has also climbed 4.9% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

PayPal Holdings

Another stock on Robinhood’s most popular list is PayPal Holdings, Inc. The company has gained immensely in recent times from its shift to e-commerce. It is known for providing a platform for digital payments for both merchants and customers across the globe.

Demand for its online platform increased mostly due to the coronavirus outbreak. Its revenues climbed 22% year over year in the second quarter of this year and it expects to add 70 million active users by the end of this year. 

But will PayPal lose its demand once the pandemic is over? Certainly not! PayPal’s two-sided platform, safety and simplicity of transactions, opportunities in the fast-growing mobile space and strategic partnerships will boost the company in the long run. Additionally, growing momentum of the company’s core peer to peer and PayPal Checkout experiences will remain a tailwind. Strong performances by Venmo and merchant services will continue to contribute to payments volume growth.

PayPal CEO Dan Schulman recently summed up by saying that “in the midst of the COVID pandemic, we have seen substantial macro changes that we believe will have a lasting and profoundly positive impact on our business.”

The company currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has climbed 11.5% over the past 60 days. The company’s expected earnings growth rate for the current and next year is 19% and 22%, respectively.

Ford

Finally, the third most popular Robinhood stock is Ford Motor Company. This is quite surprising because Ford had time and again been a poor long-term investment choice. But still more than 900,000 Robinhood investors have placed their bets on the stock.

This is because Ford currently trades at a lower price. Moreover, Robinhood has the tradition of giving out free shares to new traders. So, many new Robinhood traders have actually received free shares of Ford.

And let’s admit Ford has been an iconic brand for more than 100 years and has manufactured millions of vehicles worldwide each year. And big brands tend to have established business models and draw consumers and investor attention even when the equity market is choppy.

Lastly, Ford’s focus on SUVs and trucks along with EV launches are likely to enhance its long-term prospects. In fact, Ford took off on Robinhood in the last couple of months after consumer spending data came in quite strong. Ford currently flaunts a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has risen 47.4% over the past 60 days.

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Wynn Resorts, Limited (WYNN): Free Stock Analysis Report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

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