雅虎香港財經 Top Research Reports for Meta Platforms, Texas Instruments & Charles Schwab
Tuesday, September 17, 2024
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), Texas Instruments Inc. (TXN) and The Charles Schwab Corp. (SCHW), as well as a micro-cap stock IDT Corp. (IDT). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 (+51.1% vs. +15.7%). 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 3.2 billion people daily. User growth remained solid in the United States, with WhatsApp reaching more than 100 million monthly users and Thread approaching 200 million milestone.
It witnessed good year-over-year growth across Facebook, Instagram and Threads. Meta 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 Texas Instruments have gained +19.0% over the year-to-date period against the Zacks Semiconductor - General industry’s gain of +94.4%. The company is benefiting from solid data center demand which is boosting its prospects in the enterprise systems market. Improving conditions in the personal electronics and communication equipment markets are a plus.
Texas Instruments’ growing investments in new growth avenues and competitive advantages are tailwinds. Its deepening focus on manufacturing, advanced technology infusion, product portfolio expansion and consistent returns to shareholders, is another positive.
However, widespread weakness in the industrial, and automotive markets is major concern. Sluggishness in its Analog, Embedded Processing and Other segments is a negative. Increasing manufacturing costs are hurting its profitability. Overall weak demand environment and growing U.S.-China tensions are concerns.
(You can read the full research report on Texas Instruments here >>>)
Charles Schwab’s have underperformed the Zacks Financial - Investment Bank industry over the year-to-date period (-6.3% vs. +15.7%). As the company deals with low-yielding assets on its balance sheet, it plans to shrink itself to sustain profits and rely more on off-balance sheet arrangements to house deposits. This will likely put pressure on top-line expansion.
The Zacks analyst project total revenues to increase just 1.7% in 2024. Also, elevated expenses are likely to hamper profitability. Though we estimate the total expense to decline in 2024, it will increase in 2025. Yet, higher rates will likely aid net interest margin (NIM) while rising funding costs and low-yielding assets will weigh on it. We project NIM to be 2.13% in 2024.
Also, strategic acquisitions have increased the company’s client assets. We estimate total client assets to see a CAGR of 6.9% by 2026. Also, sustainable capital distributions are encouraging.
(You can read the full research report on Charles Schwab here >>>)
Shares of IDT have outperformed the Zacks Diversified Communication Services industry over the year-to-date period (+12.0% vs. +8.8%). This microcap company with market capitalization of $ 965.16 million has high-growth, high-margin businesses which enhanced overall results, boosting consolidated gross margin by 310 basis points in third-quarter fiscal 2024.
NRS, with over 30,000 active terminals and a 65.9% year-over-year increase in merchant services revenues, leads growth, indicating robust expansion and profitability. Positive adjusted EBITDA across segments underscores operational efficiency. IDT's consistent gross profit rise, cost management and technological advancements drive sustained growth.
Yet, IDT faces risks from economic downturns, integration challenges, cybersecurity threats and international expansion. Declining traditional telecom revenues and rising operating expenses pose challenges. Compliance with fintech regulations adds to cost pressures, and competitive markets require continuous innovation to maintain market share.
(You can read the full research report on IDT here >>>)
Other noteworthy reports we are featuring today include AT&T Inc. (T), Sony Group Corp. (SONY) and The Sherwin-Williams Co. (SHW).
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>>>
Today's Must Read
User Growth, Instagram Strength Aids Meta Platforms (META)
Texas Instruments (TXN) Banks on Solid Data Center Demand
Higher Rates & Buyouts Aid Schwab (SCHW) Amid Rising Costs
Featured Reports
AT&T (T) Rides on Strong Subscriber Growth, Robust Cash Flow
Per the Zacks analyst, healthy traction in postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans will likely boost AT&T's top line.
Strength in Music & G&NS Segments Aids SONY Amid Forex Woes
Per the Zacks analyst, solid demand in the Game & Network Services and Music units is driving Sony's performance. FX volatility and the possibility of an economic downturn in the U.S. pose headwinds.
Acquisitions and Cost Actions to Aid Sherwin-Williams (SHW)
Per the Zacks analyst, the company's strategic acquisitions and cost-control initiatives will aid its performance amid headwinds from weak demand in Europe and China.
D.R. Horton (DHI) Banks on Affordable Homes, High Costs Ail
Per the Zacks analyst, D.R. Horton is benefiting from favorable housing demand demographics, affordable home offerings, and improving capital efficiency. However, increasing costs and expenses ail.
Demand for Rental Units Aid AvalonBay (AVB) Amid High Supply
Per the Zacks Analyst, AvalonBay is likely to gain from the healthy demand for residential units amid high home ownership costs, though new deliveries remain a concern.
FDA Nod to Sarepta's (SRPT) DMD Gene Therapy Fuels Growth
The Zacks Analyst is encouraged by the FDA's recent label expansion to Sarepta's Elevidys, the first gene therapy for DMD. The therapy is now approved to treat all DMD patients aged four and older.
Solid Top Line & Strong Cash Flows Drive Unum Group (UNM)
Per the Zacks analyst, Unum Group is set to grow on strong revenues driven by higher overall persistency and healthy balance sheet should drive long-term growth. Yet, high expenses remain a concern.
New Upgrades
Demand From Large Enterprise Customers Benefits Fortinet (FTNT)
Per the Zacks Analyst, Fortinet benefits from increasing demand from large enterprise customers as well as growth in the company's security subscriptions.
Solid Contract Inflow, Budgetary Revisions aid Leidos (LDOS)
Per the analyst Leidos Holdings' gains from strong backlog courtesy of its solid order flow. The Department of Defense's encouraging spending provisions will further boost its prospects.
H&R Block (HRB) Benefits From Block Horizons 2025 Strategy
Per the Zacks analyst, Block Horizons is expected to help H&R Block deliver sustainable revenues and operating profit growth, improve return on investments, and maintain a strong liquidity position.
New Downgrades
PBF Energy (PBF) Refining Margins Ail From Oil Price Swings
Per the Zacks analyst, PBF Energy is grappling with reduced profitability due to high crude prices and increased operating costs. The company's high beta and regulatory costs add to its challenges.
Soft Demand to Hurt Capri Holdings (CPRI) Top Line
Per the Zacks analysts, softness in demand for luxury fashion items is likely to hurt Capri Holdings top line. The company is seeing sluggishness across its brands.
Mounting Costs Ail Penumbra (PEN), Intense Rivalry Concerns
The Zacks analyst is concerned with Penumbra's weak margins due to soaring operational costs from macroeconomic challenges. Fierce competition from both capitalized and smaller firms raises worry.
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AT&T Inc. (T) : Free Stock Analysis Report
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
The Sherwin-Williams Company (SHW) : Free Stock Analysis Report
The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
IDT Corporation (IDT) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
