Friday, March 1, 2024

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 Intel Corp. (INTC). 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’s shares have outperformed the Zacks Computer - Mini computers industry over the past year (+24.5% vs. +24.0%). The company is benefiting from steady iPhone sales amid stiff competition and weakness in China. It expects the March quarter’s revenues and iPhone revenues to be similar to that of the year-ago quarter’s figure after removing the additional $5 billion it generated due to pent-up demand for iPhone 14 and iPhone 14 Pro Max in the year-ago quarter.

Unfavorable forex is expected to hurt revenues by 2% on a year-over-year basis. For the Services segment, Apple expects a double-digit growth rate, similar to the December-end quarter. Strong adoption of Apple TV+ driven by strong content is a key catalyst.

Apple is gaining share in PCs which is positive. Apple’s strong cash balance and shareholder friendly approach to dividend and share repurchase is noteworthy. However, growing legal complexities has been a headwind.

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

Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past year (+181.1% vs. +73.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.

Meta Platforms is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels, Llama 2, Ray-Ban Meta smart glass, and mixed reality device Quest 3 is likely to aid prospects. Reels continued to do very well across both Instagram and Facebook driven by growing adoption.

People reshared Reels 3.5 billion times every day during the fourth-quarter. However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.

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

Shares of Intel have gained +65.9% over the past year against the Zacks Semiconductor - General industry’s gain of +163.3%. The company is focusing on establishing an advanced semiconductor manufacturing ecosystem and has expanded global production capabilities under its IDM 2.0 (integrated device manufacturing) strategy.

It remains on track with its 5N4Y (five nodes in four years) program in order to regain transistor performance and power performance leadership by 2025. Intel has launched AI chips for data centers and PCs to gain a firmer footing in the expansive AI sector and ubiquitous edge environment.

However, weak demand trends and sluggish recovery in China are affecting its revenues. Macroeconomic challenges, inventory adjustments and intense market volatility are straining margins. Stiff competition in the server, storage and networking markets has hurt its long-term growth potential to some extent. For the first quarter of 2024, Intel has offered muted guidance.

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

Other noteworthy reports we are featuring today include Interactive Brokers Group, Inc. (IBKR), Diamondback Energy, Inc. (FANG) and ICON Public Limited Co. (ICLR).

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>>>