Monday, October 28, 2024
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 Meta Platforms, Inc. (META), Tesla, Inc. (TSLA) and Thermo Fisher Scientific Inc. (TMO), as well as a micro-cap stock Where Food Comes From, Inc. (WFCF). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 >>>
Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the year-to-date period (+64.0% vs. +23.5%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
META has been leveraging AI to improve the potency of its platform offerings. These services currently reach more than 3.2 billion people daily. User growth remained solid in the United States, with WhatsApp reaching more than 100 million monthly users and Thread approaching 200 million milestone.
It witnessed good year-over-year growth across Facebook, Instagram and Threads. Meta now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which is a concern.
(You can read the full research report on Meta Platforms here >>>)
Shares of Tesla have outperformed the Zacks Automotive - Domestic industry over the year-to-date period (+12.0% vs. -1.4%). The company’s long-term growth prospects remain strong, driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements. Energy deployments are expected to double this year, thanks to the strong reception of its Megapack and Powerwall products.
Tesla’s robust balance sheet, with a high liquidity buffer, supports continued innovation and expansion. Progress in the autonomous vehicle domain, including plans to launch robotaxi services in 2025, position the company well for sustained growth.
However, near-term pressure from high capex, stiff EV competition and margin challenges in the automotive segment pose risks. Still, Tesla’s commitment toward clean energy, along with its pioneering technology and robust infrastructure, underpins our bullish long-term view of the stock.
(You can read the full research report on Tesla here >>>)
Thermo Fisher Scientific’s shares have gained +27.4% over the past year against the Zacks Medical - Instruments industry’s gain of +33.4%. The company is braving the ongoing tough economic conditions by utilizing the PPI Business System, resulting in strong financial performance.
Thermo Fisher’s growth strategy has been bolstered by several recent product launches, including a pre-transplant risk assessment assay and the international CorEvitas Adolescent Atopic Dermatitis (AD) Registry in the third quarter. The consistent efforts to expand its bioproduction business look encouraging.
Thermo Fisher’s continuous efforts to prioritize its partnership with customers to drive innovation and improve patient care bode well. A strong solvency position is an added advantage. The raised 2024 EPS outlook also raises optimism. However, the year-over-year decline in revenues in Life.
(You can read the full research report on Thermo Fisher Scientific here >>>)
Shares of Where Food Comes From have underperformed the Zacks Consumer Services - Miscellaneous industry over the past year (-18.5% vs. +20.0%). This microcap company with market capitalization of $60.85 million demonstrates strong revenue growth in its core verification services, up 13% year over year to $9.7 million in the first half of 2024, driven by the rising demand for transparency in food production.
Expansions into the Upcycled Food Certification and biosecurity services position WFCF for growth, capitalizing on sustainability trends. The company’s diversified revenue streams mitigate risks from cyclical industry pressures, such as challenges in the beef sector.
Yet, declining product sales, particularly in RFID tags, and rising SG&A expenses, which increased 13% year over year in second-quarter 2024, pose risks to profitability. The cyclical downturn in the cattle industry continues to pressure WFCF’s revenues. Concerns about cash flow sustainability arise despite share buybacks, especially if economic challenges persist.
(You can read the full research report on Where Food Comes From here >>>)
Other noteworthy reports we are featuring today include Citigroup Inc. (C), Regeneron Pharmaceuticals, Inc. (REGN) and General Dynamics Corp. (GD).
Mark Vickery
Senior Editor
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>>>
Today's Must Read
User Growth, Instagram Strength Aids Meta Platforms (META)
Tesla (TSLA) Riding on its Energy Storage Business
Thermo Fisher (TMO) End Markets Grow Amid Macro Issues
Featured Reports
Citigroup's (C) Streamlining Efforts Aid Amid Rising Costs
The Zacks analyst views Citigroup's efforts to grow core businesses by streamlining operations as impressive. Yet, revamping technology and risk management frameworks might flare up Costs.
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea faces challenges. The company's progress with the oncology portfolio is also impressive.
General Dynamics (GD) Gains From Orders, Amid Supply Issues
As per the Zacks analyst, General Dynamics is likely to benefit from increasing defense order growth from the Pentagon and U.S. allies. Yet, supply chain issues result in product delivery delays.
Aon's (AON) New Business Growth, Retention Aid, High Costs Hurt
Per the Zacks analyst, new business generation, strong retention and acquisitions are helping AON enhance its capabilities, which, in turn, is boosting profits. However, high costs remain a concern.
Capital Investments Aid Las Vegas Sands (LVS), High Costs Ail
Per the Zacks analyst, accretive capital investment programs in both Macao and Singapore and increased travel spending trends are benefiting Las Vegas Sands. Yet, high costs and expenses ail.
TechnipFMC (FTI) To Benefit from Next-Gen Subsea Suite
The Zacks analyst believes that TechnipFMC's Subsea 2.0 platform would enjoy fast-track adoption and produce further opportunities.
Under Armour (UAA) Gains on Strategic Brand Transformation
Per the Zacks analyst, Under Armour is progressing in its multi-year transformation to strengthen its brand through deeper customer engagement, effective innovations and disciplined market strategy.
New Upgrades
End-Market Strength & Diversification Aids Amphenol (APH)
Per the Zacks analyst, Amphenol benefits from commercial air, defense, industrial and mobile devices end-market demand. Diversified business model also lowers volatility of individual geographies.
Wabtec (WAB) Rides on Dividends, Buybacks & Freight Segment
The Zacks analyst likes the compan's efforts to reward its shareholders through dividends and buybacks. Strong performance of the Freight Segment bodes well.
Internet Subscriber Growth Aids Rogers Communication (RCI)
Per the Zacks analyst, Rogers Communication is benefiting from solid subscriber gain in Internet segment and shift of Internet users to higher-usage tiers.
New Downgrades
High Crude Prices to Hurt Valero's (VLO) Refining Margins
High crude oil prices may increase Valero's input costs, negatively impacting its refining margins and overall profitability. The stock's high volatility also concerns the Zacks analyst.
Weakness in North America Segment to Hurt A. O. Smith (AOS)
Per the Zacks analyst, A. O. Smith is experiencing softness in the North America unit, due to a decline in orders for residential and commercial water heater products. Forex woes are an added concern.
High-Debt Burden, Stiff Rivalry Ails Western Digital (WDC)
Per the Zacks analyst, stiff competition from other major storage players limits the growth prospects of Western Digital. Customer concentration and leveraged balance sheet are added woes.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
Citigroup Inc. (C) : Free Stock Analysis Report
Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
General Dynamics Corporation (GD) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Where Food Comes From Inc. (WFCF): Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
