Yahoo Finance Top Analyst Reports for Meta Platforms, Walmart & Johnson & Johnson
Friday, September 15, 2023
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), Walmart Inc. (WMT) and Johnson & Johnson (JNJ). 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 past six months (+52.1% vs. +23.0%) as signs of stabilization in the digital advertizing market have showed up. 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 Platforms is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
(You can read the full research report on Meta Platforms here >>>)
Shares of Walmart have outperformed the Zacks Retail - Supermarkets industry over the past six months (+20.4% vs. +18.1%). The company's performance is driven by its robust omnichannel operations aimed at improving the overall shopping experience. Walmart strategic focus on enhancing delivery services has been especially rewarding.
This is evident from the constant increase in the market share for groceries, which boosted U.S. comparable sales in the second quarter of fiscal 2024. During the quarter, the top and bottom lines grew year over year, encouraging management to raise its guidance for fiscal 2024. Strong comp sales growth globally and e-commerce growth across all units were upsides.
While the gross margin increased year over year, it was partly hurt by an adverse category mix, which is likely to linger in the third quarter. Management also expects variable pay expenses to increase year over year in the third quarter.
(You can read the full research report on Walmart here >>>)
Shares of Johnson & Johnson have gained +7.9% over the past six months against the Zacks Large Cap Pharmaceuticals industry’s gain of +19.5%. The company’s pharma unit is performing at above-market levels.
Growth in 2023 is expected to be driven by existing products like Darzalex, Tremfya, Erleada, Invega Sustenna and Uptravi, and also continued uptake from new launches, including Spravato, Carvykti and Tecvayli. The MedTech unit is showing improving trends, driven by recovery in surgical procedures and contribution from new products.
J&J is making rapid progress with its pipeline and line extensions. However, headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, uncertainty exists regarding the talc litigations.
(You can read the full research report on Johnson & Johnson here >>>)
Other noteworthy reports we are featuring today include Pfizer Inc. (PFE), Linde plc (LIN) and Morgan Stanley (MS).
Director of Research
Sheraz Mian
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)
Walmart (WMT) Benefits from Impressive E-Commerce Operations
J&J (JNJ) Pharma and MedTech Unit to Drive Growth
Featured Reports
Pfizer's (PFE) New Products Can Drive Long Term Sales Growth
Though Pfizer's (PFE) revenues from COVID products are declining sharply, it is launching some key non-COVID products in 2023, which can drive long-term sales and profit growth, per the Zacks analyst.
Linde's (LIN) Long-Term Contracts with Minimum Volume Aids
Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. Yet, declining free cash flow concerns the Zacks analyst.
Restructuring Efforts Aid Morgan Stanley (MS) Amid Cost Woes
Per the Zacks analyst, Morgan Stanley's focus on becoming less dependent on capital-markets-driven revenue sources will aid the bottom line. Higher costs due to investments in franchise remain a woe.
Intuitive Surgical's (ISRG) da Vinci System Helps Offset Risks
Per the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like COVID-19 resurgences and rising costs.
Solid Liquidity Boosts CSX, Supply Chain Disruptions Hurt
The Zacks analyst is optimistic about CSX's increasing current ratio (a measure of liquidity). However, operations are being hurt by supply chain disruptions.
BCE To Benefit From Growing Demand for PureFibre and 5G
Per the Zacks analyst, BCE will benefit from increased demand for its PureFibre and 5G wireless network. Intense competition and high-debt burden remain concerns.
Solid Revenue Growth & Buyouts Aid Encompass Health (EHC)
Per the Zacks Analyst, the company's top line has been fueled by growing patient volumes. Several acquisitions have strengthened its capabilities and expanded geographic footprint.
New Upgrades
Gentex (GNTX) Prospects Solid on Upbeat FDM Unit Volume
Per the Zacks analyst, full display mirror (FDM) is a key growth engine for Gentex. The company projects a 500,000+ FDM unit volume increase in 2023, thereby boosting sales.
Decent Consumer Loan Demand to Aid Credit Acceptance (CACC)
Per the Zacks analyst, increase in finance charges, driven by decent growth in consumer loans will likely aid Credit Acceptance's top line. Its share repurchase plan reflects a solid balance sheet.
Improved Enrollment Trends Aid Strategic Education (STRA)
Per the Zacks analyst, Strategic Education is benefitting improved enrollment trends in the U.S. Higher Education segment. Also, focus on competency-based learning model bodes well.
New Downgrades
Rising Rates, Risky Nuclear Plant Operation Ail Dominion (D)
Per the Zacks analyst, Dominion's capital projects will become costlier due to the rising interest rates. Risk associated in operating nuclear facilities will create additional challenges.
Rising Operating Costs and Forex Woes Hurt MRC Global (MRC)
Per the Zacks analyst, MRC Global is struggling with high operating costs, which in turn, are hurting the company's bottom line. Also, forex woes are an added concern for the company.
Macroeconomic Volatility, Stiff Competition Ail Masimo (MASI)
The Zacks analyst is worried about Masimo's operation in a tough competitive space. The possibility of Masimo's consumer products being affected by global market conditions is an added issue.
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Morgan Stanley (MS) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Linde PLC (LIN) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
