(You can read the full research report on Citigroup here >) Notably, the company recently announced to have passed the Fed's second round of stress test and will resume buybacks in 2021. Though, pending litigation and subdued consumer banking business remain concerns, Citigroup's shrinking costs base due to the wind-down of legacy assets is aiding bottom-line expansion.
Further, manageable debt level makes Citigroup less risky in case of any economic downturn. The Zacks analyst believes that Citigroup's streamlining efforts, along with strategic investments in core business, bode well.Īlso, net interest revenues will likely be supported by loan growth and mix, despite the low interest rates environment. (You can read the full research report on Bank of America here >)Ĭitigroup shares have gained +21.1% over the past six months against the Zacks Major Regional Banks industry's rise of +28.3%. Thus, loan growth is expected to be muted in the near term. However, near-zero interest rates and no near-term chance of any change in the same are expected to continue hurting the bank's margins and interest income.Īdditionally, coronavirus-induced concerns are likely to further hamper business activities. Further, its capital deployments are decent. The Zacks analyst believes that opening of new branches, steady improvement in digital offerings and efforts to manage expenses are likely to support profitability.Ī strong balance sheet and liquidity position are expected to continue aiding the company's financials amid economic slowdown. Shares of Bank of America have lost -14.8% over the past year against the Zacks Major Regional Banks industry's loss of -19.5%. (You can read the full research report on PayPal here >) Further, intensifying digital payment competition is a risk. However, increasing credit loss reserves owing to macroeconomic projections on account of coronavirus is a serious matter of concern. Additionally, growing momentum of core peer to peer and PayPal Checkout experiences is a tailwind.Īlso, benefits from Honey buyout are positives. Further, strengthening customer engagement on the company's platform is a major positive.įurthermore, Venmo's improving monetization efforts and rising adoption rate across various platforms are aiding the total active accounts. The Zacks analyst believes that PayPal is benefiting from robust growth in total payments volume owing to increasing net new active accounts. PayPal shares have outperformed the Zacks Internet Software industry in the year to date period (+114.1% vs. You can see all of today's research reports here > These research reports have been hand-picked from the roughly 70 reports published by our analyst team today. Today's Research Daily features new research reports on 16 major stocks, including PayPal, Bank of America and Citigroup. The Zacks Research Daily presents the best research output of our analyst team. Top Stock Reports for PayPal, Bank of America and Citigroup
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