Today's Must Read
Strategic Buyouts, Higher Rates, Loans Aid JPMorgan (JPM)
Digital Transformation and Acquisitions Aid Salesforce (CRM)
Friday, December 1, 2023
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), JPMorgan Chase & Co. (JPM) and Salesforce, Inc. (CRM). 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 >>>
Meta Platforms shares have outperformed the Zacks Internet - Software industry over the year-to-date period (+171.9% vs. +57.1%). 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 and Llama 2, is likely to aid prospects.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. 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 JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the year-to-date period (+19.9% vs. +4.1%). The company is witnessing high interest rates, buyouts, global expansion efforts and decent loan demand will aid net interest income (NII), though rising funding costs will weigh on it.
Despite visibility of some green shoots in the investment banking (IB) business, IB fees are less likely to improve soon. This, along with the volatile nature of the capital markets business and high mortgage rates, will likely hamper fee income growth. Aided by solid earnings strength and balance sheet, it will be able to sustain capital distributions.
(You can read the full research report on JPMorgan Chase here >>>)
Sares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+90.0% vs. +57.9%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The company’s sustained focus on aligning products with customer needs is driving the top line.
Continued deal wins in the international market are another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration and improved its competitive standing versus Microsoft Teams. Salesforce’s strategy of continuously expanding generative AI offerings will help the company tap the growing opportunities in the space.
However, stiff competition and unfavorable currency fluctuations are concerns. Also, the challenging macroeconomic environment and geopolitical issues could hurt its growth prospects.
(You can read the full research report on Salesforce here >>>)
Other noteworthy reports we are featuring today include Medtronic plc (MDT), The PNC Financial Services Group, Inc. (PNC) and TC Energy Corporation (TRP).
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>>>