Top Analyst Reports for Meta Platforms, S&P Global & AT&T
Wednesday, March 27, 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), S&P Global Inc. (SPGI) and AT&T Inc. (T). 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 >>>
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past six months (+63.3% vs. +39.4%). 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, Llama 2, Ray-Ban Meta smart glass, and mixed reality device Quest 3 is likely to aid prospects. Reels continued to do very well across both Instagram and Facebook driven by growing adoption. People reshared Reels 3.5 billion times every day during the fourth-quarter.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues. 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 >>>)
S&P Global’s shares have outperformed the Zacks Business - Information Services industry over the past year (+26.7% vs. +23.9%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop new products.
New service launches have been aiding the company's growth. Dividend payments and share buybacks boost investors' confidence and positively impact earnings per share.
However, S&P Global remains vulnerable to proceedings, investigations and inquiries concerning the ratings provided, leading to legal charges, damages or fines. Growth initiatives, higher compensations and incentives raise the company's expenses. Decreasing current ratio does not bode well for the company.
(You can read the full research report on S&P Global here >>>)
Shares of AT&T have gained +18.5% over the past six months against the Zacks Wireless National industry’s gain of +19.9%. The company has offered a muted outlook for 2024 owing to a challenging macroeconomic environment. Dwindling contribution from DirecTV business is a concern.
AT&T is facing a steady decline in linear TV subscribers and legacy services. As it tries to woo customers with discounts, freebies and cash credits, margin pressures tend to escalate. However, AT&T is witnessing healthy momentum in postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans driven by a customer-centric business model.
The deployment of Open RAN architecture, which offers more flexibility, lowers costs and helps to monetize the network, is likely to reap long-term benefits. An integrated fiber expansion strategy is expected to improve broadband connectivity, while steady 5G deployments are likely to boost end-user experience.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include RTX Corp. (RTX), CME Group Inc. (CME) and FedEx Corp. (FDX).
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)
IHS Markit Buyout Aids S&P Global (SPGI) Amid Rising Costs
AT&T (T) Rides on Wireless Traction, Customer-Centric Focus
Featured Reports
Order Growth Continues to Aid RTX, Amid Jet Fuel Price Hike
Per the Zacks analyst, a solid order flow from the Pentagon and its foreign allies should boost RTX. Yet, increasing jet fuel price might burden airlines thereby impacting the stock.
CME Group (CME) Rides on Improving Trading Volume, Costs High
Per the Zacks analyst, better trading volume, sturdy market position and diverse product lines poise CME Group well for growth. However, escalating expenses remain a concern.
FedEx (FDX) Rides on Dividends Amid Shipping Volume Woes
The Zacks analyst is impressed with the company's efforts to reward its shareholders through dividends and buybacks. However, shipping volume-related weakness is a concern.
Renewable Initiatives Aid AES Amid Declining Price Issue
Per the Zacks analyst, AES Corp is investing heftily in clean energy to boost its renewable generation portfolio. Yet, declining wholesale price of electricity can hurt the stock
Robust Thrombectomy Arm Aids Penumbra (PEN), Cost Woes Stay
The Zacks Analyst is impressed with the remarkable growth of Penumbra's U.S. thrombectomy business fueled by the continued strong sales of CAVT products. However, rising expenses raise concerns.
Strong Expansion Efforts Aid Beacon (BECN), High Costs Ail
Per the Zacks analyst, Beacon benefits from Ambition 2025 growth initiatives and acquisitions. However, higher expenses related to headcount from greenfields and acquired branches are a concern.
Loans & Buyouts Aid Sallie Mae (SLM) Amid High Debt & Costs
Per Zacks analysts, Sallie Mae benefits from its rise in education loan originations & inorganic expansion efforts. However, higher debt level and expenses remain major concerns.
New Upgrades
Deckers' (DECK) Omni-Channel Efforts Likely to Fuel Top Line
Per the Zacks analyst, Deckers' focus on introducing more innovative line of products, marketing and optimizing omni-channel distribution are likely to propel top line.
Favorable Demand, Cost Saving Efforts to Aid U.S Steel (X)
Per the Zacks analyst, United States Steel is well-placed to benefit from the favorable steel market fundamentals as well as its actions to improve cost structure.
Kodiak (KOD) Boosted by Tarcocimab Study Reboot
Per the Zacks Analyst, rebooting the tarcocimab program across three eye disease indications brings back a late-stage study candidate to Kodiak's clinical-stage pipeline, which is encouraging.
New Downgrades
Eni's (E) Refining Margins to Hurt From Elevated Oil Prices
Per the Zacks analyst, elevated oil prices may hurt Eni's profitability by raising its refining business's input expenses. The company's significant exposure to debt capital also adds to the concern.
Lower Orders & High Input Costs to Hurt Manitowoc
The Zacks Analyst is concerned that the ongoing downtrend in order levels as well as elevated input costs will hurt Manitowoc's results.
Sluggish Data Center Market Hurt Advanced Energy (AEIS)
Per the Zacks Analyst, Advanced Energy is suffering from weakness in Industrial & Medical and Data Center Computing end-markets.
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AT&T Inc. (T) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
