Yahoo Finance Top Stock Reports for Meta Platforms, Boeing & IBM
Monday, June 5, 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), The Boeing Company (BA) and International Business Machines Corporation (IBM). 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 year (+40.4% vs. +6.0%), as worries about the company's spending plans have markedly eased. Meta continues to benefit 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 content which is driving traffic in Instagram and Facebook. Its restructuring plan is expected to reduce expenses driving profitability. However, challenging macroeconomic conditions is negatively impacting Meta’s advertising revenues.
Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes are headwinds. Meta’s second-quarter guidance reflects macroeconomic and forex concerns. The company continues to expect Reality Labs operating losses to increase year-over-year in 2023.
(You can read the full research report on Meta Platforms here >>>)
Shares of Boeing have outperformed the Zacks Aerospace - Defense industry over the past year (+53.2% vs. -3.5%). The company remains the largest aircraft manufacturer in the United States, in terms of revenues, orders and deliveries. Lately, the company has been witnessing a solid recovery in its commercial business.
During the first quarter, the company booked 107 net commercial airplane orders. The U.S. government’s inclination toward strengthening the nation’s defense system should also boost Boeing’s growth. The company holds a strong solvency position in the near term.
However, its 737 MAX program remains a cause of concern in China, thereby impacting its expectation of delivery timing and future gradual production rate increases. Boeing continues to incur notable abnormal production cost in relation to production quality issues for 787 jets, which may hurt its future results.
(You can read the full research report on Boeing here >>>)
Shares of IBM have declined -2.6% over the past year against the Zacks Computer - Integrated Systems industry’s decline of -4.6%. The company is facing declining trends in the infrastructure vertical which is hurting the top-line growth. Intense competition from other established players like Amazon, Microsoft and Google in cloud services is putting pressure on its margins.
A highly-leveraged balance sheet and integration risk due to frequent acquisition are other concerns. However, IBM is witnessing solid net sales growth in the software segment driven by healthy hybrid cloud adoption and solid demand trends across RedHat, automation, data in AI and security.
Strong foundation of research and innovation, a broad portfolio that caters to various industry requirements and diverse global market presence set it apart from its competitors. The company is poised to benefit from the robust adoption and broad-based availability of IBM Blockchain World Wire, a blockchain driven global payments network.
(You can read the full research report on IBM here >>>)
Other noteworthy reports we are featuring today include Accenture plc (ACN), Elevance Health, Inc. (ELV) and Anheuser-Busch InBev SA/NV (BUD).
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)
Military Business Aids Boeing (BA), 787 Program Issue Woes
IBM Rides on Solid Demand Trends for Cloud and AI Solutions
Featured Reports
Solid Liquidity Aids Accenture (ACN) Amid Stiff Competition
The Zacks analyst is impressed with Accenture's increasing current ratio as it implies that the risk of default is less. However, competitive talent market is a headwind.
Elevance Health (ELV) Strong on Top Line, Capital Position
Per the Zacks analyst, the company's strong premiums, rise in membership and strategic initiatives contribute to top-line growth. Its robust capital position remains a key catalyst.
Digital Investments Brighten AB InBev's (BUD) Growth Prospects
Per the Zacks analyst, AB InBev's investments in B2B platforms, e-commerce channels and digital marketing has been aiding growth in the past few months. This is likely to bolster growth in the future.
Zscaler (ZS) Benefits From Acquisitions & Product Refreshes
Per the Zacks analyst, Zscaler is benefiting from its strategic acquisitions like Canonic Security and ShiftRight. Moreover, frequent product refreshes are helping it in gaining new customers.
Base Business Volume Growth Aids Quest Diagnostics (DGX)
The Zacks analyst is optimistic about Quest Diagnostics' robust base business growth led by health system lab services. Yet, a significant decline in COVID-19 testing revenues drags the top line.
United Therapeutics (UTHR) Dependence on PAH Drugs A Concern
United Therapeutics is a leader in treating pulmonary arterial hypertension (PAH) and markets four drugs. However, the company's over dependence on PAH concerns the Zacks Analyst.
Customer Inventory Reduction Actions Hurt's Ambarella (AMBA)
Per the Zacks analyst, customers' inventory reduction actions to manage excess chip inventories along with weakening consumer spending are likely to hurt Ambarella's near-term growth prospects.
New Upgrades
Chipotle (CMG) Rides on Solid Comps and Improved Pricing
Per the Zacks analyst, strong comparable restaurant sales growth and new restaurant openings aid Chipotle. Also, menu price increase and sales leverage benefits add to the uptrend.
Growth Projects, Newcrest Buyout Aid Newmont (NEM)
Per the Zacks analyst, Newmont will gain from the progress of its key growth projects. The acquisition of Newcrest will also create an industry-leading portfolio and generate significant synergies.
Allegiant Travel (ALGT) Benefits From Rosy Passenger Traffic
Upbeat air-travel demand is driving Allegiant's top line. The Zacks analyst also finds the company's fleet-modernization initiatives very encouraging.
New Downgrades
Huge Debt Load, Rising Costs Hurt Crestwood's (CEQP) Margins
The Zacks analyst is worried about Crestwood's increasing debt load, which could lead to volatile earnings. The partnership's rising operation and maintenance costs remain concerning.
Qualcomm (QCOM) Marred by High Channel Inventory, Soft Demand
Per the Zacks analyst, Qualcomm is likely to be plagued by a rapid deterioration in demand and high channel inventory amid a challenging macroeconomic environment and business uncertainty.
Higher Expenses, Loan Concentration Hurt Fifth Third (FITB)
Per the Zacks analyst, an increase in operating expenses and a high exposure to commercial loans amid uncertain economy are the headwinds for Fifth Third.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
