Wednesday, May 21, 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), Honeywell International Inc. (HON) and Automatic Data Processing, Inc. (ADP). 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 >>>

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You can read today's AWS here >>> Q1 Retailers Report Earnings: TGT Misses, LOW & TJX Beat

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+36.7% vs. +30.6%). 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 is a concern.

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

Shares of Honeywell have outperformed the Zacks Diversified Operations industry over the past year (+13.3% vs. +11.1%). The company’s strength in the commercial aviation and building automation businesses augurs well. The Aerospace segment is particularly strong, driven by strength in the defense business and growth in air transport flight hours. 

Strong demand across the commercial aviation aftermarket business is aiding the segment. The company also continues to reward shareholders, which adds to the stock’s appeal. While acquisitions have expanded its product range and geographic reach, they have increased the company’s balance sheet debt as well. 

However, weakness in the Industrial Automation segment, due to lower demand for smart energy and thermal solutions, is worrisome. The weakened demand for personal protective equipment within the sensing and safety technologies business is also concerning. Foreign currency translation remains an overhang.

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

Automatic Data Processing’s shares have outperformed the Zacks Internet - Software industry over the year-to-date period (+10.9% vs. +6.7%). The company aspires to grow on the back of its three-tier business strategy and use its transformation initiatives to innovate and expand margins. Acquisitions have been pivotal in ADP’s ability to operate across borders. 

Automatic Data Processing pursues buyouts that complement the overall business mix. This stock is an eye candy for dividend-seeking investors. The recent rise in the current ratio suggests a robust liquidity position for the company. Meanwhile, rising expenses due to acquisitions and investments are worrisome and can affect profitability. 

Automatic Data Processing faces high competition, which shoots talent costs sky-high and can affect the company’s growth. The stock increased 29.8% in a year and we have a Neutral recommendation on it in anticipation of a correction.

(You can read the full research report on Automatic Data Processing here >>>)

Other noteworthy reports we are featuring today include Quanta Services, Inc. (PWR), Tractor Supply Co. (TSCO) and Pilgrim's Pride Corp. (PPC).
 

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>>>