Monday, November 1, 2021

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. (FB), NVIDIA Corporation (NVDA), and Toyota Motor Corporation (TM). 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 Meta, Facebook's new name, have underperformed the S&P 500 over the past year (+23.8% vs. +42.6%) as the company has had to deal with unfavorable publicity that increases the odds of some negative regulatory action. That said, the company is witnessing steady user growth across all regions, particularly Asia Pacific. The Zacks analyst believes that it has been benefiting from increasing mobile ad revenues, growing adoption of Stories by advertisers across Instagram, core Facebook app and Messenger, and initiatives to improve security.

Meta’s strong balance sheet and cash flow generating ability remains a key catalyst. The changes made by Apple in its iOS 14 update that limit the its ability to track user-activity trend is likely to hurt the company though. Increasing regulatory headwinds in the EU and other countries is another concern.

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

NVIDIA shares have gained 96% in the year to date period against the Zacks General Semiconductor industry’s gain of +49.3%. The Zacks analyst believes that NVIDIA has been benefiting from significant growth opportunities in ray-traced gaming, rendering, high-performance computing, AI as well as self-driving cars.

A surge in Hyperscale demand has been supporting the growth of the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive its user base. Collaboration with Mercedes-Benz is also expected to strengthen NVIDIA’s presence in the autonomous vehicles as well as other automotive electronics space.

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

Shares of Toyota have gained +17.5% over the past six months against the Zacks Foreign Automotive industry’s gain of +11%. The Zacks analyst believes that Toyota’s focus on developing electric and driverless cars is likely to boost revenues in the quarters ahead.

The firm projects fiscal 2022 operating income to rise +13.8% year over year. Focus on electric vehicles (EVs) and driverless cars is another key catalyst. High capex and research and development (R&D) expenses on advanced technologies have been weighing on its margins though. Toyota also slashed its production forecast for fiscal 2022, amid the global dearth of chips.

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

Other noteworthy reports we are featuring today include The Coca-Cola Company (KO), HSBC Holdings plc (HSBC) and S&P Global Inc. (SPGI).

Sheraz Mian

Director of Research

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>>>