Top Analyst Reports for Meta Platforms, Becton Dickinson & CME Group

Wednesday, November 9, 2022
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), Becton, Dickinson and Co. (BDX) and CME Group (CME). 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 Meta Platforms have underperformed the Zacks Internet – Software industry over the past year (-70.6% vs. -68.5%). The company is suffering from challenging macroeconomic conditions that is negatively impacting its advertising spending. Unfavorable forex, targeting and measurement headwinds due to Apple’s iOS changes, normalization of e-commerce after the pandemic peak and higher inflation hurt growth in the reported quarter.

User base in Europe declined in the quarter, as well. Meta’s third-quarter guidance reflects macroeconomic and forex concerns. Weak advertising demand is another headwind. Meta expects Reels to monetize much slower than Feed or Stories.

However, Meta is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.

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

Becton, Dickinson’s shares have declined -10.7% over the past year against the Zacks Medical – Dental Supplies industry’s decline of -15.2%. The year-over-year fall in BD Life Sciences and international revenues is worrying. Lower COVID-only testing revenues are discouraging from a business perspective. BD’s operations in a highly consolidated medical technology industry and a stiff competitive space are worrying. Forex woes prevail.

However, improvement on its overall top line and base revenues in third-quarter fiscal 2022 is impressive. Robust results by a majority of the arms and in the U.S. are promising. Expansion of both margins is a plus.

A raised financial outlook for the full fiscal year is also promising. Regulatory approvals and launches are encouraging. BD’s strategic deals augur well. A strong solvency position is an added plus. BD’s fiscal third-quarter results were better than expected.

(You can read the full research report on Becton, Dickinson here >>>)

CME Group’s shares have declined -21.6% over the past year against the Zacks Securities and Exchanges industry’s decline of -37.7%. The company is facing escalating expenses due to higher technology cost are likely to put pressure on the company’s margin expansion.

Diversified product portfolio is significantly exposed to volatile interest rate, firm government regulations and limited credit availability in unstable capital and credit market. Also, stiff competition poses financial risk for the company.

However, CME Group’s strong market position driven by varied derivative product lines bodes well. Efforts to expand and cross sell through strategic alliances, acquisitions, new product initiatives and a stable global presence bode well.

Product innovation and growing proportion of volume from customers outside the U.S. have been aiding results. The company intends to focus more on over-the-counter clearing services.

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

Other noteworthy reports we are featuring today include The Kroger Co. (KR), Chipotle Mexican Grill (CMG) and ParkerHannifin (PH).

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

Strong Instagram, Messenger & Whatsaap Aids Meta Platforms (META)

A Slew of Strategic Deals, Product Launches Aid BD (BDX)

Improving Clearing and Transaction Fees Aid CME Group (CME)

Featured Reports

Chipotle (CMG) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle’s consistent strength in digital sales and positive customer reception to new menu items bode well. Howeve, inflationary wage pressures are a concern.

Kroger’s (KR) Expansion of Our Brands Portfolio to Fuel Sales
Per the Zacks analyst, Kroger has been expanding its product lines under Our Brands portfolio to offer customers greater value. The company launched 170 new items in the second quarter of fiscal 2022.

Senior Housing Recovery, Acquisitions Aid Welltower (WELL)
Per the Zacks Analyst, Welltower (WELL) is set to gain from the senior housing recovery and strategic acquisitions. However, higher interest rates and strengthening of the U.S. dollar are major woes.

Seagen’s (SGEN) Cancer Drugs Aids Growth Amid Stiff Rivalry
Per the Zacks analyst, Seagen’s lead cancer drug Adcetris along with newly approved Padcev and Tukysa are driving revenue growth. Stiff competition in the target market remains major a concern.

Solid Investments Boost Entergy (ETR), Weak Solvency Woes
Per the Zacks analyst, Entergy’s disciplined investment in grid upgrades should drive its earnings and add impetus to its growth trajectory. However, its weak solvency position remains a bottleneck.

Rising Customer Demand Across Several Verticals Aid ANSYS (ANSS)
Per the Zacks analyst, ANSYS’ performance benefitted from higher customer demand across aerospace and defense, high-tech and automotive sectors. However, stiff competition is a major headwind.

Air-Travel Demand Drives American Airlines (AAL), Costs Doom
Upbeat air-travel demand is driving American Airlines’ top line. The Zacks analyst is, however, worried about escalated fuel costs that are limiting bottom-line growth.

New Upgrades

Parker-Hannifin (PH) Rides on Strength Across End Markets
The Zacks analyst is encouraged by the company’s growth owing to strong demand across end markets and higher orders. The Meggitt acquisition should bolster the company’s top line.

Engineered Solutions segment to Aid Applied Industrial (AIT)
Per the Zacks analyst, strength in Applied Industrial’s Engineered Solutions segment, owing to demand in mining, metals, food & beverage, technology and machinery markets supports its growth.

Cactus (WHD) to Gain From Higher Wellhead Equipment Sales
The Zacks analyst is upbeat about Cactus witnessing higher wellhead and production-related equipment sales, which will translate into increased cash flows.

New Downgrades

Supply Chain, War and Inflation to Hurt NCR’s (NCR) Revenues
Per the Zacks analyst, inflationary pressures along with business disruptions caused by the supply-chain issues and Russia-Ukraine war are likely to negatively impact NCR’s revenues in the near-term.

Increased Cat Loss & Elevated Debt Level Hurt Allstate (ALL)
Per the Zacks analyst, exposure to catastrophic events continues to dent underwriting profitability. Rising debts remain a concern as it leads to escalated interest expenses.

Cat Loss, Rising Expenses Hurt Cincinnati Financial (CINF)
Per the Zacks analysts, Cincinnati Financial’s exposure to catastrophe induces volatility in its underwriting profitability while increasing expenses weighing on margin expansion are concern.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CME Group Inc. (CME) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
ParkerHannifin Corporation (PH) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
The Kroger Co. (KR) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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