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The Zacks Analyst Blog Highlights: Facebook, Netflix, NextEra Energy, GlaxoSmithKline and T-Mobile US

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For Immediate Release

Chicago, IL – February 20, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Facebook , Netflix (NFLX - Free Report) , NextEra Energy (NEE - Free Report) , GlaxoSmithKline (GSK - Free Report) and T-Mobile US (TMUS - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Facebook, Netflix and NextEra Energy

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 Facebook, Netflix and NextEra Energy. 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 >>>

Facebook’s shares have outperformed the S&P 500 over the past year (+34% vs. +20.3%). The Zacks analyst believes that the company benefited from solid growth in Instagram Stories and Feed, and Facebook News Feed. Moreover, strong sales of Oculus Quest drove payment revenues.

Facebook’s fourth-quarter 2019 results were driven by continued user growth across all regions. Asia-Pacific remained its fastest growing region, driven by growth in India, Indonesia and the Philippines.

However, Facebook expects top-line growth to slow down due to increasing limitations in tracking user activity amid growing privacy-related regulations, changes made in mobile operating systems and browser platforms by Apple and Google and its own tools like the Off Facebook Activity controls. Moreover, a persistent mix shift toward Stories is anticipated to hurt ARPU. Also, rising regulatory headwinds are concerning. 

Shares of Netflix have gained +29.7% in the past six months against the Zacks Broadcast Radio and Television industry's rise of +16.3%. The Zacks analyst believes that Netflix is expected to benefit from an expanding content portfolio despite increasing competition from the likes of HBO, Amazon prime video, Disney+ and Apple TV+.

Expanding bundle offerings through partnerships with Telefonica, KDDI, AT&T, Comcast, DISH, Verizon, Charter, Altice, T-Mobile and Sky are a key catalyst. Moreover, the launch of low-priced mobile plans in India, Indonesia and Malaysia is expected to expand the subscriber base in the Asia Pacific.

However, management expects net additions in the paid subscriber base to decline in first-quarter 2020. Moreover, high streaming content obligation and increased spending are expected to hurt free cash flow generation.

NextEra Energy’s shares have gained +19.9% over the past three months against the Zacks Electric Power industry's rise of +12.1%. The Zacks analyst believes that NextEra Energy is poised to benefit from ongoing investments, which are in turn going to boost its performance in the long run.

NextEra’s “30 by 30” plan will help the company meet the goal of making the generation portfolio cleaner. The $50-$55B investment through 2022 will add more clean power generation units, and modernize and strengthen its infrastructure. NextEra aims to lower emissions to 67% by 2025 from 2005 levels.

However, its nature of business is subject to complex and comprehensive federal, state and other regulations. If the planned nuclear plant outages last longer or an unplanned outage occurs, the company’s normal operations and profitability might be hindered.

Other noteworthy reports we are featuring today include GlaxoSmithKline and T-Mobile US.

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See 5 Stocks Set to Double>>

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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