Tuesday, March 1, 2022
 

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 Tesla, Inc. (TSLA), Meta Platforms, Inc. (FB), and Johnson & Johnson (JNJ). 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 Tesla have outperformed the Zacks Automotive - Domestic industry over the past year (+26.8% vs. -3.4%). Tesla put up an impressive Q4 show, outpacing both top- and bottom-line expectations. The electric vehicle (EV) leader hit an incredible milestone in Q4, with record deliveries and an all-time high gross margin. Despite the global chip crunch, Tesla’s vehicle deliveries jumped 90% in 2021.
 

The Zacks analyst believes that increasing deliveries for Models 3 and Y is fueling the company’s revenues. With China being the biggest EV market, Tesla’s ambitious production plans in the country bode well. Robust production of Model 3 and Y from Shanghai gigafactory is a major positive catalyst. Along with high automotive revenues, Tesla’s energy generation and storage revenues are also growing thanks to positive reception of Megapack and Powerwall products.
 

(You can read the full research report on Tesla here >>>)
 

Meta Platforms shares have declined -18.5% over the past year against the Zacks Internet - Software industry’s decline of -47.1%. The Zacks analyst believes that Meta’s fourth-quarter 2021 results suffered from Apple’s iOS changes as well as engagement-related headwinds.

Apple’s iOS changes have made ad targeting difficult, which, in turn, has increased the cost of driving outcomes. Measuring these outcomes has also become difficult. Meta expects these factors to hurt advertising growth in first-quarter and throughout 2022.
 

Moreover, Meta faced increased competition for people’s time and a shift of engagement within its apps to video platforms like Reels, which show fewer ads than Feed or Stories, currently. Apart from ad-targeting difficulty, Meta’s first-quarter guidance reflects macroeconomic and COVID-related concerns. Cost inflation and supply chain disruptions are expected to impact advertiser budgets.
 

(You can read the full research report on Meta Platforms here >>>)
 

Shares of Johnson & Johnson have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+3.5% vs. +18.3%). The Zacks analyst, however, believes that the company’s Pharma unit is performing at above-market levels, supported by its blockbuster drugs, Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya and its COVID-19 vaccine.

Sales in Consumer unit are improving, withstanding external supply constraints. J&J is making rapid progress with its pipeline and line extensions. Several pivotal data readouts are expected in 2022.
 

Yet, the Medical Devices segment is being hurt by softening of recovery trends in medical and surgical procedures. Headwinds like generic competition and pricing pressure continue. Though J&J has taken meaningful steps to resolve its talc and opioid litigation, they continue to remain an overhang on the stock.
 

(You can read the full research report on Johnson & Johnson here >>>)
 

Other noteworthy reports we are featuring today include Verizon Communications Inc. (VZ), Discovery, Inc. (DISCA) and PepsiCo, Inc. (PEP).
 

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>>>