Top Analyst Reports for Facebook, Adobe, BP & Others
Thursday, June 11, 2020
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 Facebook (FB), Adobe Systems (ADBE) and BP p.l.c. (BP). 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 >>>
Facebook’s shares have outperformed the S&P 500 over the past year (+35.3% vs. +10.8%). The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in the Asia Pacific.
The company helped people connect during the coronavirus pandemic. Notably, voice and video calling more than doubled on Messenger and WhatsApp. The launch of Messenger Rooms for video call, which can accommodate 50 people, and WhatsApp video support for up to eight users are noteworthy in this regard. Further, the GIPHY buyout will boost user engagement.
However, Facebook expects ad-sales to be hurt by weakness in travel and automotive industry. The company didn’t provide any specific revenue guidance for the second quarter of 2020 as well as the full year. Moreover, higher operating expense is expected to dent the operating margin in 2020 due to sluggish revenue growth.
(You can read the full research report on Facebook here >>>)
Shares of Adobe have gained +32.9% over the past six months against the Zacks Software industry’s rise of +19.4%. The Zacks analyst is optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. Adobe is benefiting from strong demand for its creative products.
The company’s Creative Cloud, Document Cloud and Adobe Experience Cloud products are driving the top-line growth. Further, rising subscription revenues and solid momentum across the mobile apps are major positives.
Additionally, growth in emerging markets, robust online video creation demand and improving average revenue per user are tailwinds. However, lower end-market demand and exposure to Europe remain overhangs. High acquisition expenses do not bode well for its margin expansion.
(You can read the full research report on Adobe here >>>)
BP’s shares have gained +22.3% over the past three months against the Zacks International Integrated Oil industry’s rise of +28.7%. The Zacks analyst believes that the company’s decision to cut workforce, will significantly strengthen the firm’s financials. This will make the firm smaller & more competitive.
BP has a strong portfolio of upstream projects which has been backing impressive production growth. Since 2016, BP has placed 23 key upstream projects online. All the key projects BP has been delivering over the years backed the company to post record production levels. Notably, despite the coronavirus pandemic, BP has been progressing with its key upstream projects that will help the firm boost production by 900 Mboe/d within 2021.
But, since the virus outbreak has hurt global fuel demand, BP expects refinery utilizations to decline in June quarter. Also, BP’s huge debt exposure is concerning. Moreover, in 2020, the firm expects Gulf of Mexico oil spill payments to be less than $1 billion.
(You can read the full research report on BP here >>>)
Other noteworthy reports we are featuring today include JPMorgan Chase (JPM), Boeing (BA) and Sony (SNE).
5 Stocks Set to Double
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Sheraz Mian
Director of Research
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
Expanding User Base, Instagram Strength Aid Facebook (FB)
Adobe (ADBE) Rides on Creative Strength; Expenses A Concern
BP plc (BP) Banks on Key Upstream Projects, Refining Weak
Featured Reports
New Branches, Loan Growth Aid JPMorgan (JPM) Amid Low Rates
Per the Zacks analyst, decent loan demand, opening branches in new regions and focus on credit card business will support JPMorgan.
Positive Budget Aids Boeing (BA) Amid Poor 737 Deliveries
Per the Zacks analyst, expansionary amendments made in recent U.S. defense budgets are boosting Boeing's top line.
Strong I&SS Segment Aid Sony (SNE) Amid COVID-19 Concerns
Per the Zacks analyst, Sony's Imaging & Sensing Solutions (I&SS) segment continues to benefit from growth in sales of image sensors for mobile products despite a slowdown in the smartphone market.
Order Flows Aid General Dynamics (GD), Delayed Deliveries Hit
Per the Zacks analyst, steady order flows bolsters General Dynamics' revenue generation prospects. Yet delayed jet deliveries owing to coronavirus outbreak may hurt its results in the near term.
Robust Sensor Unit Drives DexCom (DXCM), Higher Costs a Woe
Per the Zacks analyst, DexCom has been gaining consistently from the Sensor and Transmitter segments.
Strategic Efforts & Solid Balance Sheet Aid MetLife (MET)
Per the Zacks analyst, strategic initiatives have enabled the company to control costs, which is driving margins.
Digital Innovations Aid TD Ameritrade (AMTD), High Cost Ails
Per Zacks analyst, TD Ameritrade's improved digital platforms have helped it witness higher client activities, thus aiding revenues.
New Upgrades
Work-From-Home & Online Learning Wave Aids Zoom Video (ZM)
Per the Zacks analyst, Zoom Video is benefiting from the coronavirus-induced remote working and Internet-based education wave.
EQT Corporation (EQT) to Gain on Core Marcellus Acreage
The Zacks analyst expects EQT Corporation to grow on the huge inventory of drilling locations in the core Marcellus Shale of the Appalachian Basin.
Cost Control, Commercialization strategy to Aid Cosan (CZZ)
Per the Zacks analyst, Cosan will gain from its focus on supply and commercialization strategy to support customer relationships, cost control actions as well as hedging sugar and ethanol prices.
New Downgrades
Choppy Crude Oil Demand and Prices Hurt TOTAL (TOT)
Per the Zacks analyst TOTAL's profitability and operation are adversely impacted by the ongoing fluctuation in crude oil price and drop in oil demand due to coronavirus pandemic.
Rising Expenses Continue to Bother Universal Health (UHS)
Per the Zacks analyst, steep increase in operating expenses has been a concern for the past many years. Given its growth-related investments, high costs are likely to drain the margins going forward.
SkyWest (SKYW) Stung by Low Air-Travel Demand & High Costs
The Zacks analyst is worried about coronavirus-induced plummeting air-travel demand. Moreover, steep operating expenses are hurting the bottom line.
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Sony Corporation (SNE) : Free Stock Analysis Report
JPMorgan Chase Co. (JPM) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
BP p.l.c. (BP) : Free Stock Analysis Report
The Boeing Company (BA) : Free Stock Analysis Report
Adobe Systems Incorporated (ADBE) : Free Stock Analysis Report
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