Wednesday, February 19, 2025

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. (META), BlackRock, Inc. (BLK) and Palo Alto Networks, Inc. (PANW), as well as two micro-cap stocks, Seneca Foods Corp. (SENEA) and Crown Crafts, Inc. (CRWS). 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 >>>

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You can read today's AWS here >>> Housing Puts Up Mixed Numbers; Earnings for ETSY, GRMN & More

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+51.7% vs. +33.7%). The Zacks analyst believes that steady user growth across all regions and increased engagement for its products have been major growth drivers for Meta. The company’s growing footprint among young adults, driven by improving recommendations, boosts its competitive prowess. AI usage is making it a popular name among advertisers.

However, monetization of these AI services will take considerable time, which is a concern.

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

BlackRock’s shares have underperformed the Zacks Financial – Investment Management industry over the past six months (+13.6% vs. +19.1%). The Zacks analyst believes that higher expenses, owing to higher general and administration costs, are expected to hurt profits. BlackRock’s reliance on overseas revenues exposes it to geopolitical tensions, different regulatory/economic environments and exchange rate fluctuation.

Yet planned acquisitions of Preqin and HPS Investment, along with the buyouts of Global Infrastructure Partners and a 75% stake in SpiderRock, have boosted revenues. Efforts to expand into alternatives and private equity, as well as its solid assets under management (AUM) balance, have also aided the firm.

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

Shares of Palo Alto have outperformed the Zacks  Security industry over the past two years (+146.1% vs. +122.6%). Per the Zacks analyst, the company has been benefiting from continuous deal wins and the increasing adoption of its next-gen security platforms. Product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy have also aided.

However, softening IT spending amid macroeconomic headwinds may hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability..

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

Seneca Foods’ shares have outperformed the Zacks Food – Miscellaneous industry over the last six months (+32.7% vs. -11.7%). The Zacks analyst believes that strategic inventory reductions and improved cash flow highlight financial discipline, while its diversified product mix, including brands like Libby’s and Green Giant, supports market leadership in packaged fruits and vegetables.

Yet, rising costs from weather impacts, higher LIFO charges, increased interest expenses, competitive pressures, raw material volatility and customer concentration underscore challenges in sustaining growth.

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

Crown Crafts’ shares have outperformed the Zacks Textile – Home Furnishing industry over the past six months (-8.0% vs. -13.0%). The Zacks analyst believes that the acquisition of Baby Boom Consumer Products in July 2024 has proven immensely profitable for the company. Improved gross margin, manageable debt structure and a strategic initiative to consolidate warehouse operations have also aided.

Yet, heavy customer concentration poses revenue risks while rising inventory levels and macroeconomic sensitivity expose liquidity pressures. Reliance on China for sourcing increases tariff and supply chain risks. Weak legacy sales signal challenges, despite expanding retail channels and strong licensing opportunities.

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