Top Research Reports for Apple, Meta Platforms & Visa
Monday, April 3, 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 Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Visa Inc. (V). 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 >>>
Apple shares are up +26.7% in the year-to-dater period vs. the Zacks Tech sector's 20.6% gain and the S&P 500 index's +7.4% gain.
The company expects the March quarter’s year-over-year revenue growth to be similar to that of the December quarter due to unfavorable forex. For iPhone, Apple expects the March quarter’s year-over-year revenue growth to accelerate relative to the December quarter’s year-over-year revenue growth.
For Mac and iPad, revenues are expected to decline in double digits on a year-over-year basis due to challenging comparison and macroeconomic headwinds. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, as well as weakness in digital advertising and gaming.
However, revenues are expected to grow year over year. Growing services subscriber base and a strong liquidity position are key catalysts for Apple’s prospects.
(You can read the full research report on Apple here >>>)
Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past six months (+51.1% vs. +14.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger, and Facebook has been a major growth driver.
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, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.
Meta’s first-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is a headwind. Meta expects Reels to monetize much slower than feed or stories, which is a concern.
(You can read the full research report on Meta Platforms here >>>)
Visa shares have outperformed the Zacks Financial Transaction Services industry over the past six months (+22.0% vs. +15.2%). The company’s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. For fiscal 2023, net revenues are estimated to rise in the high single digits on a reported nominal dollar basis.
Constant investments in technology are solidifying its position in the payments market. A shift in payments to the digital mode is a boon for Visa. Steady domestic volumes and transactions rise will aid the company to boost its top line in the coming years. A strong cash position enables it to boost shareholder value.
However, high operating expenses stress the company's margins. Ramped-up client incentives will dent the top line. The company's volumes will likely suffer due to the Russia-Ukraine conflict. As such, the stock warrants a cautious stance.
(You can read the full research report on Visa here >>>)
Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), United Parcel Service, Inc. (UPS) and Caterpillar Inc. (CAT).
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
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
User Growth, Instagram Strength Aids Meta Platforms (META)
Visa (V) Rides on Increasing Payments Volume, Expenses High
Featured Reports
ExxonMobil (XOM) Banks on Prolific Guyana & Permian Basin
The Zacks analyst likes ExxonMobil since it has a pipeline of key oil and gas projects in the prolific Guyana & Permian assets. However, dividend yield is lower than the industry's composite stocks.
Dividends & Buybacks Lift UPS' Prospects Despite High Costs
The Zacks analyst is impressed with UPS' efforts to reward its shareholders through dividends and buybacks. However, elevated fuel costs are limiting bottom-line growth.
Caterpillar (CAT) to Gain on Strong Demand in End Markets
Per the Zacks analyst, solid backlog, improving end-market demand and focus on making strategic investments in expanded offerings, services and digital initiatives will drive Caterpillar's results.
Solid Backlog Aids Quanta (PWR), Supply Chain Risks Ail
Per the Zacks analyst, Quanta benefits from solid backlog levels, accretive acquisitions and robust growth strategies. However, supply chain disruptions and project delays hurt.
Pinterest (PINS) Rides on High Ad Efficacies, Wide User Base
Per the Zacks analyst, Pinterest is likely to benefit from enhanced product offerings, new conversion insights, wider Pinner and advertiser base and a unique value proposition for advertisers.
Integra's (IART) Codman Arm Gains Strength on Product Launch
The Zacks analyst is positive about the fact that despite the macroeconomic slowdown, Integra's Codman Specialty Surgical line is expanding across neurosurgery franchises banking on innovation.
Crysvita & Dojolvi Boosts Ultragenyx (RARE), Low Cash a Woe
Per the Zacks Analyst, Ultragenyx's marketed products have been performing well. However, pipeline setbacks, and increasing operational costs, will hurt the company amidst a cash crunch.
New Upgrades
Penske (PAG) Rides High on Strategic Buyouts, Low Leverage
The Zacks analyst is optimistic about Penske's buyout of Kansas City Freightliner, McCoy and Team Trucks Centers. Penske's long-term debt-to-capitalization of 27% is better than industry's 32%.
Clean Assets, North America Focus Aid Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy is gaining by generating electricity from renewable energy sources to meet rising demand and focus on domestic market saves it from currency risks.
Decent Comps Run to Fuel Ollie's Bargain's (OLLI) Top Line
Per the Zacks analyst, Ollie's Bargain's business model of buying cheap and selling cheap, cost control efforts and healthy comps run reinforce its position. Fiscal 2023 comps are likely to rise 1-2%.
New Downgrades
Tyson Foods (TSN) Sales Troubled by Beef Segment Softness
Per the Zacks analyst, Tyson Foods' sales are being affected by softness in the Beef segment. USDA projects fiscal 2023 domestic production to fall roughly 5% year over year for the Beef segment.
Elevated Costs, Mortality Claims Hurt Lincoln National (LNC)
Per the Zacks Analyst, a high benefits expense level can dampen dent the company's margins. Continued incidence of COVID-related mortality remains a concern.
High Expenses, Tough Backdrop Hurt Moelis & Company (MC)
Per the Zacks analyst, steadily rising expenses as Moelis & Company continues with its hiring spree is worrisome. A tough operating backdrop due to geopolitical and macroeconomic concerns is a woe.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
