Top Analyst Reports for Tesla, Johnson & Johnson & PayPal
Friday, October 22, 2021
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 Tesla, Inc. (TSLA), Johnson & Johnson (JNJ), 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 Tesla have outperformed the Zacks Domestic Automotive industry in the year to date period (+28.5% vs. +10.1%). The Zacks analyst believes that a robust demand for Models 3 and Y has been buoying Tesla's revenues. The electric vehicle (EV) giant’s gross auto margins hit a record high in third-quarter 2021.
Tesla achieved record Q3 production and deliveries despite chip crunch. The company has also started making progress at ramping up volumes of Models S and X. Tesla’s energy generation and storage revenues as well as a low debt to capitalization ratio not only increase its financial flexibility but also boost its earnings prospects.
Johnson & Johnson shares have gained +0.2% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +9.4%. Generic competition and pricing pressure continue to weigh on its margins. Though it has taken steps to resolve the talc and opioid litigations, they continue to remain a major concern for the company.
The Zacks analyst, however, believes that label expansion of drugs such as Imbruvica, Darzalex and Stelara have been boosting the company’s margins. The company is also making rapid progress with its pipeline and line extensions, with several pivotal data readouts and regulatory milestones expected in the near term.
Shares of PayPal have gained +19.2% over the past year against the Zacks Internet Software industry’s gain of +11.3%, though the stock has lost ground lately on the Pintrust (PINS) news. The Zacks analyst believes that the company has been benefiting from steady growth in total payments volume on the back of increasing net new active accounts.
Venmo’s improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts growth. Accelerating transaction revenues of PayPal are likely to continue driving revenues further. Intensifying competition in the digital payment market, foreign exchange fluctuations and interest rate related risks remain major concerns though.
Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), Square, Inc. (SQ) and GlaxoSmithKline plc (GSK).
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>>>
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GlaxoSmithKline plc (GSK): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
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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.