Top Research Reports for T-Mobile, Deere and PayPal – April 29, 2022

Friday, April 29, 2022

Zacks Research Daily features top research results from our team of analysts. Today’s Research Daily features new research reports on 16 major stocks, including T-Mobile US, Inc. (TMUS), Deere & Company (DE) and PayPal Holdings, Inc. (PYPL). These research reports have been handpicked from the approximately 70 reports published today by our team of analysts.

You can see all today’s research reports here >>>

Shares of T-Mobile have outperformed the Zacks Wireless National industry year-to-date (+12.6% vs. +2.5%). The company is on track to complete the Sprint customer network migration mid-year and decommissioning by the end of the year. Its extended 5G range covers 315 million people, or 95% of Americans. Ultra Capacity 5G covers 225 million people and nearly 85% of T-Mobile customers. About 45% of postpaid customers use a 5G phone, and 5G devices account for more than half of total network traffic.

However, it operates in a fiercely competitive and nearly saturated U.S. telecommunications market. Low-cost plans for consumers and small businesses did not improve the bottom line. Promotional activities aimed at attracting rivals’ customers have hurt its profitability.

(You can read the full T-Mobile research report here >>>)

Shares of Deere outperformed the Zacks Manufacturing – Farm Equipment industry over the past year (+5.6% vs. +2.8%). The Zacks analyst believes the continued rise in commodity prices will continue to fuel demand for farm equipment, encouraging farmers to increase spending on new farm equipment. Replacement request to upgrade old equipment will support Deere’s superior results. Demand for agricultural and construction equipment will continue to be supported by positive fundamentals, including favorable crop prices, economic growth, and increased infrastructure spending in fiscal 2022.

Deere should benefit from growth in non-residential investment and strong order activity from independent rental companies. A focus on investing in new products equipped with the latest technology will automate farming, which will drive Deere’s growth. However, higher material and labor costs are likely to reduce the margin.

(You can read the full Deere research report here >>>)

PayPal shares have fallen -64.8% over the past year against the -51.4% decline in the Internet – Software industry from Zacks, primarily reflecting a change in sentiment in the current rising market environment rate. The company’s increasing competition in the digital payment market poses a serious risk to the company’s position in the market. In addition, currency headwinds remain a concern. The stock has underperformed its industry year-to-date.

However, the first quarter results were driven by strong growth in total payment volume due to the net increase in new active accounts. The strengthening of customer engagement has been positive. In addition, the strong performance of Venmo and merchant services contributed well to the growth of POS. Moreover, the rise of digital payment due to the coronavirus pandemic remains a tailwind.

The Zacks analyst believes transaction revenue growth should continue to drive top line growth. Also, the strong momentum of peer-to-peer and PayPal Checkout experiences is a tailwind. PayPal’s growing traction in the US is a positive.

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

Other noteworthy reports we feature today include Raytheon Technologies Corporation (RTX), The PNC Financial Services Group, Inc. (PNC) and Edwards Lifesciences Corporation (EW).

Sheraz Mian

Director of Research

Note: Sheraz Mian leads the equity research department at Zacks and is a well-known expert on overall earnings. He is frequently quoted in the written and electronic press and publishes the weekly Earnings Trends and Earnings overview reports. If you would like to receive an email notification whenever Sheraz publishes a new article, please click here>>>