The Zacks Analyst Blog Highlights: ExxonMobil, PayPal, Starbucks, Southwest Airlines and Interactive Brokers

Zacks Equity Research
Here we discuss the impact of Starbucks' Q2 earnings results on certain ETFs with high exposure to the coffee giant.

For Immediate Release

Chicago, IL –April 3, 2019 – 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: ExxonMobil XOM, PayPal PYPL, Starbucks SBUX, Southwest Airlines LUV and Interactive Brokers IBKR.

Here are highlights from Monday’s Analyst Blog:

Top Stock Reports for ExxonMobil, PayPal and Starbucks

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 ExxonMobil, PayPal and Starbucks. 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 >>>

ExxonMobil’s shares have underperformed the Zacks Integrated International Oil industry (+19.1% vs. +11.3%) in the past three months. ExxonMobil has a leading position in the energy industry owing to its size and diverse asset base, both in terms of business mix and geographical footprint.

With a stable cash position, the company’s balance sheet is one of the best in the industry. The Zacks analyst thinks that this has allowed ExxonMobil to reward stockholders with a 6.3% average annual dividend hike over the past 35 years.

The company owns some of the most prolific upstream assets globally along with the largest global refining operations. Notably, with two fresh offshore oil discoveries in Guyana, ExxonMobil recently completed 12 key discoveries in the Stabroek Block. Also, the company recently made massive natural gas discovery in Glaucus-1 well, located off the coast of Cyprus.

However, persistent weakness in chemicals margins and decline in seasonal demand for gasoline are major headwinds for ExxonMobil. The company’s exit from a joint venture in Russia is also cause for concern.

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

Shares of Buy-ranked PayPal have outperformed the Zacks Internet Software industry in the past year (+41.5% vs. +27.1%). The Zacks analyst thinks PayPal’s portfolio strength remains its key growth driver. Venmo’s improving monetization efforts and its increasing adoption rate across various platforms are aiding the company’s user base.

Further, strong momentum of the company in international markets, especially in India and Japan remains a major positive. Also, accelerating transaction revenues are driving the top-line growth. Additionally, rising active customer accounts, owing to contributions by acquisitions of Hyperwallet and iZettle continues to act as a tailwind. Also, strategic partnerships are expected to continue aiding business growth of PayPal.

However, weak eBay performance and challenging macroeconomic environment in China and the UK induced the issuance of lower-than-expected revenue guidance for Q1. This remains a concern.

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

Buy-rankedStarbucks’ shares are up +33.3% over the past six months, outperforming the Zacks Food & Restaurants industry, which is up +17.4% over the same period. The Zacks analyst thinks robust Americas and China comparable store sales bode well.

Starbucks' business in China is rapidly growing due to innovative store designs, local product innovations and the success of MSR program. Also, the company’s operating fundamentals such as solid global footprint, successful innovations, best-in-class loyalty program and digital offerings are encouraging.

Again, digital initiatives like mobile order/pay and delivery services can further stimulate robust sales trends. Starbucks' partnership with Nestle SA will also drive growth. However, operating margin contraction over the past few quarters has been a major concern.

Being a retail restaurant, Starbucks is dependent on consumer discretionary spending environment. Estimates for current quarter and year have been stable over the past 30 days.

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

Other noteworthy reports we are featuring today include Southwest Airlines and Interactive Brokers.

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


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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Starbucks Corporation (SBUX) : Free Stock Analysis Report
 
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