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a day ago
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The Zacks Analyst Blog Highlights PayPal, Visa, Mastercard and Coinbase Global
Chicago, IL – July 1, 2025 – 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: PayPal PYPL, Visa Inc. V, Mastercard Inc. MA and Coinbase Global COIN. Here are highlights from Monday's Analyst Blog: PayPa lshares have dropped 13.7% year to date, largely due to intensifying competition in the fintech sector. Rivals like Visa Inc., Mastercard Inc., Apple Pay and Adyen continue to expand their offerings, challenging PayPal's dominance in digital payments. Broader macroeconomic pressures and uncertainty surrounding the tariff policy have also dampened investor sentiment. Compared to its peers, PayPal's performance has been notably weaker. While PYPL has struggled, Visa shares have climbed 10.3%, and Mastercard has risen 4.5% over the same timeframe, highlighting PayPal's relative underperformance in a competitive and uncertain market environment. However, before rushing to sell this stock or capitalize on the dip, it's crucial to assess whether PayPal has the growth potential and determine if the current challenges could meaningfully affect its performance. PayPal's evolution from a payments provider to a comprehensive, end-to-end strategic commerce partner, focusing on personalized experiences and leveraging data to create a dynamic smart wallet for consumers, marks a pivotal shift in its business model. The company is converging into a single PayPal platform to harness the full potential of its two-sided network, supporting both consumers and merchants. PayPal is positioning itself as a comprehensive commerce partner for merchants, expanding its role beyond that of a traditional payments processor. PayPal's focus on enhancing branded checkout, person-to-person (P2P) services and Venmo has supported growth in active user accounts. In the first quarter of 2025, transaction margin dollars rose 7% year over year to $3.72 billion, driven by strong performance across omnichannel commerce, Venmo and Payment Service Provider ("PSP"). Venmo revenues surged 20%, contributing 18% to the total payment volume. The company remains on track with its intention to extend its successful U.S. omnichannel strategy to global markets, with NFC functionality scheduled to roll out in Germany during the second quarter and in the U.K. in the third quarter. PayPal's Buy Now Pay Later ("BNPL") business is gaining strong traction, with first-quarter volume rising more than 20% and monthly active accounts up 18% year over year. BNPL users spend 33% more and make 17% more transactions, on average, highlighting its effectiveness in driving consumer engagement. To build on this momentum, PayPal is rolling out targeted awareness campaigns across key markets, including the U.K., Germany, Australia, France, Italy and Spain, aiming to drive broader adoption and reinforce its position in the BNPL space. This augurs well for long-term growth. PayPal's growing network of strategic partners, including Coinbase Global, Fiserv, Adyen, Amazon, Global Payments and Shopify, is bolstering its growth outlook. Earlier this year, PayPal deepened its collaboration with Coinbase to accelerate the adoption, distribution and usage of its PayPal USD ("PYUSD") stablecoin, giving Coinbase users direct access to PYUSD. However, while necessary, investments in product modernization (branded platform, AI), Venmo expansion and geographic rollout (NFC in Germany, UK omnichannel) are likely to keep weighing on margin improvement in the near term. Moreover, despite a strong first quarter, PayPal held steady on its full-year outlook, pointing to macroeconomic uncertainties such as geopolitical tensions and tariff-related risks as reasons for caution. PayPal shares are trading cheap, as suggested by the Value Score of B. In terms of forward 12-month P/E, PYPL stock is trading at 13.74X compared with the Zacks Financial Transaction Services industry's 22.48X. The stock is cheaper than competitors, including Visa and Mastercard. Shares of Visa and Mastercard are currently trading at P/E of 28.11X and 31.82X, respectively. PayPal's estimate revisions reflect a positive trend for the second quarter, as well as for the full years 2025 and 2026, though the same for the third quarter is not that impressive and is going south. The Zacks Consensus Estimate for 2025 earnings is pegged at $5.08 per share, suggesting 9.25% growth over 2024. The consensus mark for second-quarter 2025 earnings is pegged at $1.30 per share, calling for 9.2% growth over the figure reported in the year-ago quarter. PayPal's strategic transformation is underway, supported by a broad user base, a trusted brand and a revitalized leadership team. Execution across core initiatives, from branded checkout and Venmo to BNPL and international omnichannel, demonstrates early success. However, stiff competition, a challenging macroeconomic environment and margin trade-offs temper the near-term outlook. The stock is currently trading at a discount compared to its peers, but it may be wise to hold off on any decisions until there is more clarity on macroeconomic conditions and policy changes, as well as their potential effects on PayPal. So, it seems prudent for investors to wait for a more favorable point to start accumulating the stock. For existing shareholders, staying invested could be a reasonable choice, given the company's robust portfolio, expanding partner base and growth opportunities in the evolving fintech space. PayPal currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ 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 for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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The Zacks Analyst Blog Highlights ARKK, WGMI, HYDR, URA and CHPS
Chicago, IL – July 1, 2025 – 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. ETFs recently featured in the blog include: ARK Innovation ETF ARKK, Valkyrie Bitcoin Miners ETF WGMI, Global X Hydrogen ETF HYDR, Global X Uranium ETF URA and Xtrackers Semiconductor Select Equity ETF CHPS. Here are highlights from Monday's Analyst Blog: Wall Street is set to wrap up one of the strongest monthly advances so far in 2025, fueled by optimism surrounding global trade and easing fears over tariffs. The S&P 500 and the Nasdaq Composite Index closed at an all-time high Friday, another milestone in the stock market's remarkable recovery from a springtime plunge caused by fears that the Trump administration's trade policies could harm the economy. With just a day left to close the month, the S&P 500 has climbed 4.4%, and the tech-heavy Nasdaq rose nearly 6%. The Dow Jones Industrial Average has also rallied 3.7% (read: S&P 500 ETFs to Tap as Market Optimism Builds Up?). We have highlighted five top-performing ETFs from different industries that led the market higher in June. The market's swift recovery this month reflects a renewed wave of investor optimism. The "Magnificent Seven" (Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla) regained lost ground, collectively adding $4.7 trillion in market cap since April. Additionally, the Fed kept interest rates steady at 4.25-4.50% on June 18, with more dovish signals from board members, fueling speculation of a cut as early as July. Further, markets shrugged off geopolitical risks. Fears that the Israel-Iran conflict could disrupt global oil supply have subsided following a ceasefire. U.S.-Canada trade tensions eased as Canada removed a digital-services tax, resuming negotiations. However, uncertainty still looms. A pause on retaliatory tariffs affecting a broad group of nations is set to expire in July. Failure to reach agreements can trigger a new round of tariffs, threatening market sentiment and consumer confidence. Let us dig into the details of the above-mentioned ETFs: ARK Innovation ETF – Up 24.6% ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of products or services, technological improvements, and advancements in scientific research related to the areas of DNA technologies and genomic revolution, automation, robotics, energy storage, artificial intelligence, next generation Internet and Fintech innovation. In total, the fund holds 40 securities in its basket. ARK Innovation ETF has gathered $6.7 billion in its asset base and charges 75 bps in fees per year from investors. It trades in an average daily volume of 12 million shares (read: Cathie Wood's ARKK ETF Turns Red Hot in June: Here's Why). Valkyrie Bitcoin Miners ETF – Up 23.3% Valkyrie Bitcoin Miners ETF is an actively managed ETF that offers pure-play access to North America's leading Bitcoin mining industry, a crucial component of the Bitcoin ecosystem. It provides targeted exposure to the companies at the forefront of transaction verification, ensuring transparency and security on the blockchain. Valkyrie Bitcoin Miners ETF holds 20 stocks in its basket, charging 75 bps in annual fees. It has amassed $155.4 million in its asset base while trading in an average daily volume of 612,000 shares. Global X Hydrogen ETF – Up 19.9% Global X Hydrogen ETF seeks to invest in companies that stand to benefit from the advancement of the global hydrogen industry. It tracks the Solactive Global Hydrogen Index, holding 25 stocks in its basket. American firms make up the largest allocation in the basket at 35.8%, while Britain and South Korea account for a 17% share each. Global X Hydrogen ETF has an AUM of $31.4 million and trades in an average daily volume of 17,000 shares. It charges 50 bps in annual fees. Global X Uranium ETF – Up 19.6% Global X Uranium ETF provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries. It tracks the Solactive Global Uranium & Nuclear Components Total Return Index and holds 48 stocks in its basket. Canadian firms make up the largest allocation in the basket at 38.2% while the United States accounts for a 20.8% share. Global X Uranium ETF has amassed $3.7 billion in its asset base and charges 69 bps in annual fees. It trades in an average daily volume of 5 million shares (read: Data Centers to Power Nuclear Energy and Uranium ETFs). Xtrackers Semiconductor Select Equity ETF – Up 18.3% Xtrackers Semiconductor Select Equity ETF targets the semiconductor industry and seeks to track the Solactive Semiconductor ESG Screened Index. It holds 54 stocks and charges 15 bps in annual fees. Xtrackers Semiconductor Select Equity ETF has an AUM of $8.1 million and trades in an average daily volume of 1,000 shares. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ 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 for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ARK Innovation ETF (ARKK): ETF Research Reports Global X Uranium ETF (URA): ETF Research Reports Global X Hydrogen ETF (HYDR): ETF Research Reports Xtrackers Semiconductor Select Equity Etf (CHPS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
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2 days ago
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Clearfield and AeroVironment have been highlighted as Zacks Bull and Bear of the Day
Chicago, IL – June 30, 2025 – Zacks Equity Research shares Clearfield CLFD as the Bull of the Day and AeroVironment AVAV as the Bear of the Day. In addition, Zacks Equity Research provides analysis on QuantumScape Corp. QS and NVIDIA Corp.'s NVDA. Here is a synopsis of all four stocks: Clearfield is a Zacks Rank #1 (Strong Buy) that has an F for Value and a B for Growth. A recent earnings beat has this stock in the spotlight. This small cap stock is seeing good growth and if that continues the stock will grow into a rather high valuation. Let's learn more about why this stock is the Bull of the Day. Clearfield, Inc. engages in the design, manufacture, and distribution of fiber protection. It operates through the Clearfield and Nestor Cable segment. The Clearfield segment involves the design, manufacture, and selling of fiber management, protection, and delivery solutions. The Nestor Cables segment includes designs, manufacture, and selling fiber management, protection, and delivery solutions. The company was founded in 1979 and is headquartered in Brooklyn Park, MN. When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see. Clearfield has posted four consecutive beats of the Zacks Consensus Estimate. The takeaway from the earnings history is that the company has an average positive earnings surprise of 56% over the last year. The most recent earnings print saw the company post -$0.04 when the consensus was at -$0.33. That 29 cent beat translates into a positive earnings surprise of 87.5%. AeroVironment is a Zacks Rank #5 (Strong Sell) after the company recently posted a beat and the stock has soared since that earnings report. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day. AeroVironment, Inc. designs, develops, produces, operates a portfolio of products and services for government agencies, businesses and consumers. It operates through two segments: Unmanned Aircraft Systems, which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems, which focuses primarily on the design, development, production, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense. The Company also supplies charging systems and services for electric vehicles, and power cycling and test systems to commercial, consumer and government customers. It serves the U.S. Department of Defense, including the U.S. Army, Marine Corps, Special Operations Command, Air Force, and Navy. When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see. In the case of AeroVironment I see the company has beat the Zacks Consensus Estimate in two of the last four quarters. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either. The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates. The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For AeroVironment, I see annual estimates moving lower of late. The current fiscal year consensus number moved lower from $4.42 to $3.14 over the last 60 days. The next year has moved from $5.28 to $4.43 over the last 60 days. Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell). It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell). QuantumScape Corp. recently hit a major milestone, boosting investor interest as 17.4 million shares were traded on Thursday, a 38% increase from the previous session. QuantumScape's shares jumped 34.9% in yesterday's trading and have increased 92.7% over the past month. The solid-state battery maker is now drawing attention from investors due to higher trading activity and positive news, drawing comparisons to NVIDIA Corp.'s success with artificial intelligence (AI) technology, and prompting thoughts about its potential as a buying opportunity. Let's explore – QuantumScape's shares surged following a breakthrough in its solid-state battery production process. QuantumScape introduced its Cobra separator technology, reigniting hopes among market analysts that the solid-state battery dream is becoming a reality. The innovative Cobra separator process is 25 times faster than the previous Raptor system, and a more compact and cost-effective method for producing solid-state battery separators. Cobra will require less floor space than its predecessor and is designed for gigawatt-scale battery production. All these factors make Cobra economically viable for mass production. QuantumScape's Cobra separator process reached baseline production ahead of schedule, marking a breakthrough in solid-state batteries for electric vehicles (EVs). This development overcomes the challenge of large-scale production that has previously hindered the EV industry's adoption of the technology. If QuantumScape fulfills its battery innovation potential, it could transform EV power and challenge NVIDIA's performance, but it's uncertain whether it can replicate NVIDIA's successes given its history of unmet promises. Meanwhile, the rising demand for Blackwell chips, AI graphics processing units (GPUs) and CUDA software will fuel NVIDIA's growth in the cloud and automotive sectors, making it too early to expect QuantumScape to match NVIDIA's accomplishments. Nonetheless, NVIDIA has been able to generate profits and control costs in a better way than QuantumScape, with a return on equity (ROE) of 109.9% compared to QS's negative 41.4%. QuantumScape struggles to use shareholder investments effectively (read more: Is Stock the Next NVIDIA and a Buy?). Despite the recent political challenges, the EV market is set to grow. Demand for advanced batteries remains strong, particularly for those that are safer, lighter and quicker to charge. QuantumScape's advancements in solid-state lithium battery production could lead to significant milestones and boost its stock value. Stakeholders are advised to retain their shares. For new entrants, the QuantumScape stock might be risky. Meeting long-term EV contract demands and maintaining quality standards remain challenges, and falling behind could cause QuantumScape's stock price to drop. The QuantumScape stock, anyhow, is presently more volatile than the markets it trades in. It has a beta of 4.27. For now, QuantumScape stock has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for 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 information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report AeroVironment, Inc. (AVAV) : Free Stock Analysis Report Clearfield, Inc. (CLFD) : Free Stock Analysis Report QuantumScape Corporation (QS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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25-06-2025
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The Zacks Analyst Blog Highlights CME, Accenture, Visa and PayPal
Chicago, IL – June 25, 2025 – 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: CME Group Inc. CME, Accenture plc ACN, Visa Inc. V and PayPal Holdings PYPL. The cryptocurrency market took a hit over the weekend as the United States entered the Middle East conflict and showered bombs on Iranian nuclear sites. Bitcoin (BTC), which hit an all-time high last month, was one of the biggest sufferers. However, Bitcoin and other cryptocurrencies recovered after Trump announced a ceasefire between Iran and Israel on Monday night. Bitcoin has held its ground amid the ongoing geopolitical tensions, as several other factors are driving the cryptocurrency. Several analysts believe that Bitcoin has the potential to surpass $120,000 this year. Given this situation, it would be ideal to invest in crypto-focused stocks. We have selected four stocks, namely CME Group Inc., Accenture plc, Visa Inc. and PayPal Holdings. Each of these stocks has strong growth potential for 2025 and has seen positive earnings estimate revisions in the last 90 days. Bitcoin fell below $100,000 early Monday for the first time in 45 days after the United States bombed Iranian nuclear sites, fueling fears that the ongoing tensions could last for a longer period. The fears escalated after Iran retaliated by attacking U.S. airbases in Qatar and Iraq. However, Bitcoin made a solid rebound late Monday after Trump announced a ceasefire between Iran and Israel. The cryptocurrency briefly surpassed $106,000 before giving up some of the gains and was hovering around $105,700, with its market cap standing at $2.1 trillion. The Middle East crisis has been weighing on the cryptocurrency market, but Bitcoin has managed to hold its ground. The Bitcoin rally has faced challenges, but has not come to a halt. There have been profit bookings, but it has continued to trade with solid gains. While the ceasefire announcement alleviated immediate concerns over disruptions in oil supply, investors are also waiting for Federal Reserve Chairman Jerome Powell's speech. Investors have lately been optimistic about the Fed resuming its rate cuts in the coming weeks as inflation has been showing signs of cooling over the past three months. Experts believe that a rate cut in the coming weeks could boost Bitcoin to $107,000 and put it on track to surpass $120,000. Fed Governor Christopher Waller said on Friday that a rate cut could come as early as July. Trade tensions have also eased substantially over the past few weeks, with the United States and China reaching a trade deal earlier this month. Negotiations with several other nations are ongoing, and more trade deals are likely to be announced in the near term. CME Group CME Group Inc.'s options give the buyer of the call/put the right to buy/sell cryptocurrency futures contracts at a specific price at some future date. CME offers bitcoin and ether options based on the exchange's cash-settled standard and micro BTC and ETH futures contracts. CME Group's expected earnings growth rate for the current year is 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 90 days. CME presently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Accenture Accenture plc is a worldwide system integrator that offers consulting, technology and various services. The company promotes Ethereum-based blockchain solutions to businesses, aiming to simplify payment processing. Accenture's expected earnings growth rate for the current year is 6.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 90 days. ACN currently carries a Zacks Rank #3. Visa Inc. Visa is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, V is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion of V includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments. Visa's expected earnings growth rate for the current year is 12.9%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 90 days. V currently has a Zacks Rank #3. PayPal Holdings PayPal Holdings provides digital wallet services that enable users to purchase, transfer and sell various cryptocurrencies, such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Through PYPL, users can use cryptocurrencies to pay for goods and services from online merchants. Additionally, PayPal's mobile wallet platform, Venmo, allows users to engage in cryptocurrency buying and selling activities. PayPal's expected earnings growth rate for the current year is 9.3%. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 90 days. PYPL currently has a Zacks Rank #3. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ 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 for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CME Group Inc. (CME) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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16-06-2025
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Zacks Industry Outlook Highlights Comcast, Charter Communications and Naspers
Chicago, IL – June 16, 2025 – Today, Zacks Equity Research discusses Comcast CMCSA, Charter Communications CHT and Naspers NPSNY. Link: The Zacks Cable Television industry players are focusing on bundled offerings and on-demand programming to counter challenges from cord-cutting as consumers shift away from traditional pay-TV options, including cable TV and satellite TV, to over-the-top streaming services with innovative content. The industry is evolving by leveraging its broadband infrastructure to meet changing consumer preferences and balancing traditional cable services with new streaming options to maintain relevance in the rapidly changing media landscape. Cable companies are benefiting from consistent demand for high-speed broadband and WiFi devices, driven by hybrid work and learning environments. Increased media consumption has been a key catalyst for industry leaders like Comcast, Charter Communications and Naspers. The Zacks Cable Television industry comprises companies offering integrated data, video and voice services, including pay-TV and Internet-based streaming content. These firms provide equipment like satellite dishes, digital set-top receivers and remote controls. Cable companies typically build or lease network backbones from telecom companies and purchase licenses to distribute programmers' content over these networks. They license content from programmers and sell advertising spots. The industry is capital-intensive, requiring significant investment in infrastructure, and is heavily regulated by the Federal Communications Commission. Industry players must balance the need for ongoing investment in technology and infrastructure with evolving consumer preferences and regulatory compliance to maintain competitiveness in the media landscape. : Cable television's ability to generate ad revenues outside traditional TV platforms, such as websites and any digitally-consumed platform, provides increased scope for target-based advertising. Nevertheless, consumers' unfavorable disposition, particularly toward advertising, has hit industry participants hard. Further, the growing consumer preference for digital and subscription services instead of linear pay-TV and rental or outright purchase has compelled industry players to alter their business models. Cable television companies are now offering a variety of alternative packages, including skinny bundles, which are delivered at lower costs than traditional offerings. These companies are also innovating in terms of original content to be competitive against streaming service providers. : The growing demand for high-speed Internet, including broadband, has aided cable television industry participants like Comcast and Charter. Improving Internet speed is fueling the demand for high-quality video and the trend of binge viewing. Further, a strengthening broadband ecosystem in international markets, along with the proliferation of smart TVs, is anticipated to drive growth. Also, the work-from-home trend and online learning have boosted Internet usage, thus supporting industry participants. : The cable television industry is witnessing the rapid evolution of distribution platforms as well as embracing new players and advanced technologies. Declining profits of residential video services due to rising programming costs and retransmission fees have made survival difficult for traditional companies. Additionally, the heightened need for on-demand content has led to the mushrooming of streaming service providers, making it particularly tricky for traditional cable television companies to maintain a viewer base. Furthermore, the traditional pay-TV industry is maturing with widespread consolidation. Moreover, residential voice service revenues are declining due to the rising shift to wireless voice services. : Persistent inflation and higher interest rates are having a detrimental effect on ad spending. Besides, the challenge with TV ads is that marketers have difficulty getting actionable metrics and insights such as attribution data. At this time, marketers must look for outside-the-box solutions to extract conversion data from offline media. TV has taken a secondary role in most marketing strategies due to the growing influence of digital marketing. Many marketers are increasing ad spending on digital mediums due to their unmatched ability to deliver personalized messages that are easy to measure. Cable TV players are set to face competition for ad dollars from streaming service providers like Netflix and Disney, which are raising prices and introducing cheaper ad-supported packages now that their subscriber growth has slowed. The Zacks Cable Television industry is housed within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #199, which places it in the bottom 19% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are pessimistic about this group's earnings growth potential. Since June 30, 2024, the industry's earnings estimate for 2025 has moved south by 4%. Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture. The Zacks Cable Television industry has underperformed the broader Zacks Consumer Discretionary sector and the S&P 500 composite over the past year. The industry has returned 8.9% over this period compared with the broader sector's growth of 19.8%. The S&P 500 has risen 11.2% in the said time frame. On the basis of the trailing 12-month EV/EBITDA, a commonly used multiple for valuing cable companies, we see that the industry is currently trading at 6.76X compared with the S&P 500's 17.07X and the sector's 10.84X. Over the past five years, the industry has traded as high as 16.19X, as low as 6.26X and at the median of 8X. Comcast: The company demonstrates financial resilience with 2% EBITDA growth and robust $5.4 billion free cash flow generation, while wireless momentum accelerated to the strongest quarter in two years. However, broadband operations face headwinds with 199,000 customer losses amid intensifying competition from fiber and fixed wireless providers. Management acknowledges execution challenges in their core connectivity business but has initiated strategic responses, including simplified pricing structures, five-year price guarantees, and aggressive wireless expansion targeting their substantial 87% untapped broadband customer base. The upcoming Epic Universe theme park opening and improving Peacock economics provide growth catalysts, though near-term EBITDA pressure is expected from necessary investments. Comcast's diversified portfolio and strong balance sheet offer defensive qualities while management works to regain competitive momentum in its largest business segment. Shares of this Zacks Rank #3 (Hold) company have lost 6% year to date. The Zacks Consensus Estimate for Comcast's 2025 earnings has moved north by 1.2% to $4.35 per share in 60 days. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Charter Communications: This Zacks Rank #3 company presents a compelling watch story for 2025 following its transformative $34.5 billion acquisition of Cox Communications announced in May. The merger will create an enhanced industry leader serving more than 69 million passings while generating anticipated annual cost synergies of $500 million within three years. Q1 2025 results demonstrate operational resilience with 4.8% adjusted EBITDA growth and robust free cash flow expansion to $1.6 billion, despite modest Internet customer declines offset by strong mobile line additions. The company's ongoing network evolution initiatives and rural expansion efforts position it strategically for long-term growth. However, investors should monitor integration execution risks, regulatory approval processes, and intensifying competition in broadband that could impact customer acquisition and pricing power throughout the combination period. Charter's shares have gained 15.8% year to date. The consensus mark for 2025 earnings has moved north by 5% in the past 60 days to $39.54 per share. Naspers: This Zacks Rank #3 company is worth a watch for 2025 following a significant operational transformation and delivering impressive results with ecommerce revenue growing 24% to $3.3 billion and adjusted EBIT increasing fivefold to $169 million in the first half. The company's AI-first strategy is showing tangible benefits, including 20% improvements in customer acquisition costs and enhanced fraud detection across its ecosystem. With $10 billion available for disciplined investment and strong free cash flow generation of $911 million, Naspers is well-positioned for strategic opportunities. The focus on value crystallization through Indian IPOs, following Swiggy's successful $11.3 billion listing, offers potential near-term catalysts. However, investors should monitor the execution of the $6.2 billion revenue and $400 million profitability guidance amid evolving market conditions. Shares of the company have surged 40.3% year to date. The consensus mark for fiscal 2025 earnings has remained steady at $4.88 per share in the past 30 days. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ 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. 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Click to get this free report Comcast Corporation (CMCSA) : Free Stock Analysis Report Chunghwa Telecom Co., Ltd. (CHT) : Free Stock Analysis Report Naspers Ltd. (NPSNY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
