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 The Procter & Gamble Company (PG), as well as a micro-cap stock, Genie Energy Ltd. (GNE). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have lagged the Zacks Tech setor (+21.7% vs. +27.6%) and the S&P 500 index (+21.7% vs. +25.7%) in the year-to-date period. The stock's recent underperformance notwithstanding, the Zacks analyst remains optimistic about Apple's long-term outlook on the back of strong growth in Services revenues, an expanding content portfolio of Apple TV+ and Apple Arcade and introduction of Apple Intelligence have helped and are going to help the company grow.
However, weakness in iPhone sales particularly in China is a major headwind.
(You can read the full research report on Apple here >>>)
Meta shares have outperformed the Zacks Internet - Software industry over the past year (+68.8% vs. +45.3%), reflecting steady user growth globally. Increased engagement for its platforms has been a major growth driver. META has been leveraging AI to improve the potency of its platform offerings.
Yet, monetization of these AI services will take considerable time, which is a concern.
(You can read the full research report on Meta here >>>)
Shares of Procter & Gamble have outperformed the Zacks Soap and Cleaning Materials industry over the last six months (+7.3% vs. +6.9%). Per the Zacks analyst, the company has been gaining from a strategy that focuses on sustainability and adaptability, responding to the evolving demands of consumers and society. It has been focused on productivity and cost-saving plans to boost margins.
However, PG has been witnessing headwinds related to the market issues in Greater China, geopolitical tensions, and financial impacts from currency volatility.
(You can read the full research report on Procter & Gamble here >>>)
Shares of Genie Energy have underperformed the Zacks Utility – Electric Power industry over the past year (-36.3% vs. +20.8%). Per the Zacks analyst, the company faced revenue decline, margin contraction and pressure from lower electricity sales, with RCEs and meter counts decreasing. Additionally, increased captive insurance liability and dependence on favorable market conditions pose risks. Volatility in solar projects and fluctuating energy prices add uncertainty.
Yet, Genie Energy is benefited by its diversified revenue streams. Also, significant growth in the GREW segment and strategic investments in utility-scale solar projects indicate long-term revenue streams.
(You can read the full research report on Genie Energy here >>>)
Other noteworthy reports we are featuring today include Accenture plc (ACN), American Express Company (AXP) and Air Products and Chemicals, Inc. (APD).
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)
P&G's (PG) Productivity & Cost Savings Plan to Aid Margins
User Growth, Instagram Strength Aids Meta Platforms (META)
Featured Reports
Strong Sales in U.S. Segment Aid Revenues at Aflac (AFL) Per the Zacks analyst, Aflac's U.S. segment, backed by increased growth investments and productivity gains, will fuel growth. A strong solvency position enables business investments.
Generics Business Boost Dr. Reddy's (RDY), Competition a Woe Per the Zacks Analyst, Dr. Reddy's enjoys a strong foothold in the generics market with new product launches and pending filings. However, increasing competition in the generics market is concerning.
Valero's (VLO) Refining Capacity & Diesel Demand Aid Growth Per the Zacks analyst, Valero benefits from strong refining capacity and rising diesel demand. However, EPA biofuel mandates weigh on margins, thereby limiting profitability growth.
Acquisitions Strategy Aid Accenture (ACN), Talent Costs Ail Per the Zacks analyst, Accenture's buyout strategy helps in channeling its business in high-growth areas, deepening industry and functional expertise. A competitive talent market remains a concern.
Project Investments, Productivity to Aid Air Products (APD) While Air Products faces headwinds from weak demand in China and Europe, it should gain from investments in high-return industrial gas projects and productivity actions, per the Zacks analyst.
Robust Revenues & Cash Flows Aid American Express (AXP) Per the Zacks analyst, several growth-related initiatives, such as product launches, coupled with increased consumer spending aid revenue growth. Robust cash flows have enabled business investments.
Loan & Deposit Growth Aid M&T Bank (MTB), High Costs Ail Per the Zacks analyst, M&T Bank's top line benefits from growth in loan and deposit balances. However, rising expenses driven by technological developments remain a concern.
New Upgrades
Holistic Growth Led by Strategic Buyouts Aid InterDigital (IDCC) Per the Zacks Analyst, solid licensing momentum and product innovation are boosting InterDigital's (IDCC) top line. Strategic buyouts further aid the company.
A Solid Product Suite Continues to Aid AngioDynamics (ANGO) The Zacks analyst is upbeat about AngioDynamics' solid product portfolio. A slew of ongoing studies also buoy optimism.
Wide Global Presence, Focus on R&D Aid Inspire Medical (INSP) The Zacks analyst is upbeat about Inspire Medical's solid efforts to improve its research and development stature. A strong global presence is an added plus.
New Downgrades
Competition From Clean Fuel Sources Ail Arch Resources (ARCH) Per the Zacks analyst, Arch Resources' results are adversely impacted as emissions concerns push coal back in comparison with other clean fuel sources. Strict regulations also act as a headwind.
Regulations, Seasonality of Business Ail MDU Resources (MDU) Per the Zacks analyst, MDU Resources' operations are likely to be adversely impacted by government regulations. Seasonality of business operations can reduce demand and lower earnings.
China Woes & High Expenses Hurt Starbucks' (SBUX) Prospects Per the Zacks analyst, Starbucks' performance is impacted by intense competition and a soft macro environment in China. Also, elevated costs and lower sales of high-ticket items are a concern.
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