Tuesday, June 3, 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), Broadcom Inc. (AVGO) and JPMorgan Chase & Co. (JPM). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Slightly Lower Ahead of Open; JOLTS, Earnings to Come

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+41.2% vs. +38.4%). 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 has been leveraging AI to improve the potency of its platform offerings. These services currently reach more than 3.43 billion people daily. Meta Platforms’ growing footprint among young adults, driven by improving recommendations, boosts its competitive prowess. AI usage is making it a popular name among advertisers. This is expected to drive top-line growth. 

Meta Platforms now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which may be a concern.

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

Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the past year (+88.5% vs. +26.4%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs), as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth. 

Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. 

Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in its fiscal Q2 is expected to contract sequentially on unfavorable revenue and product mix. High debt levels are a headwind.

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

JPMorgan’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+36.1% vs. +31.4%). The company’s first-quarter 2025 results reflected solid capital markets performance and loan demand. Business expansion efforts, decent loan demand and high rates support net interest income (NII). 

The Zacks analyst expects NII (managed) to show a CAGR of 2.4% by 2027. While a solid resurgence in deal-making activities is likely to take time, a solid pipeline will drive the investment banking (IB) business. We expect IB fees to witness a CAGR of 2.2% by 2027. 

Yet, the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. Our estimate for the metric shows a 6.2% fall in 2025. As it invests in technology and marketing, expenses are expected to remain high. Our estimates for non-interest expenses imply a CAGR of 2.4% by 2027. Weak asset quality is a concern.

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

Other noteworthy reports we are featuring today include Carvana Co. (CVNA), Agnico Eagle Mines Ltd. (AEM) and Entergy Corp. (ETR).

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>>>