Today's Must Read
Solid User Base, Instagram Strength Aid Meta Platforms (FB)
Base Sales Rebound, Rise in FY View Aid Abbott (ABT)
Thursday, December 2, 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 Tesla, Inc. (TSLA), Meta Platforms, Inc. (FB), and Abbott Laboratories (ABT). 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 Tesla have outperformed the Zacks Domestic Automotive industry over the past year (+84.5% vs. +40.1%). The Zacks analyst believes that robust demand for Models 3 and Y has been buoying Tesla's revenues. Tesla achieved record production levels in the third quarter despite a chip crunch, on the back of robust demand for Model 3/Y cars.
With China being the biggest EV market, TSLA is poised to witness strong revenues from its Shanghai factory in the quarters ahead. Production from Berlin and Texas gigafactories is also expected to commence this year. In addition to increasing automotive revenues, Tesla’s energy generation and storage revenues are also boosting earnings prospects.
Meta Platforms shares have gained +14.7% in the year-to-date period against the S&P 500’s gain of +22.7%. The Zacks analyst, however, believes that Meta has been benefiting from steady user growth across all regions, particularly Asia-Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Meta Watch has been a major growth driver.
FB’s focus on becoming a Metaverse company is noteworthy. Meta’s strong balance sheet and cash flow generating ability is a key catalyst. The tech giant, however, expects revenues to hurt from changes made by Apple in its iOS 14 update that limit its ability to track user-activity trends.
Shares of Abbott Laboratories have gained +19.7% in the last six months against the Zacks Medical Products industry’s gain of +8.5%. The Zacks analyst believes that strength in ABT’s branded generics and international diabetes businesses should drive growth in the coming quarters. New product launches and acquisitions is likely to boost sales further.
Abbott posted better-than-expected earnings and revenue numbers for the third quarter of 2021. Barring Neuromodulation, the company registered organic sales growth across each of its operating segments. In Adult Nutrition, ABT reported robust global demand for Ensure and Glucerna. Slow growth in the nutrition business in China, however, continues to dampen the top-line growth.
Other noteworthy reports we are featuring today include Comcast Corp. (CMCSA), AbbVie Inc. (ABBV) and 3M Co. (MMM).
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>>>