Tuesday, January 28, 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), Wells Fargo & Co. (WFC) and GE Aerospace (GE), as well as a micro-cap stock Cemtrex, Inc. (CETX).  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 >>>

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You can read today's AWS here >>> Durable Goods Stronger, Q4 Earnings Mixed Pre-Market

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+68.0% vs. +33.4%). 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. Meta’s 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 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 Wells Fargo have outperformed the Zacks Financial - Investment Bank industry over the past year (+59.0% vs. +56.2%). The company’s fourth-quarter results benefit from higher non-interest income. Its progress on efficiency initiatives, such as branch and footprint reduction, will support lowered expenses and drive bottom-line growth. A decent deposit balance is likely to assist its financials.

However, loan growth is expected to be limited, as the asset cap remains in place until it complies fully with regulators’ demands regarding operational risk management. The bank agreed to divest its non-agency third-party servicing segment of the Commercial Mortgage Servicing (CMS) business to Trimont.

This, along with lower origination, is expected to hurt mortgage banking income in the near term. Yet its decent liquidity position will keep the capital distribution move sustainable in the long term.

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

GE Aerospace’s shares have outperformed the Zacks Transportation - Airline industry over the past year (+88.2% vs. +63.3%). The company has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.

GE Aerospace’s portfolio-reshaping actions are likely to unlock values for its shareholders. For 2025, GE Aerospace expects organic revenues to grow in the low-double-digit range from the year-ago level.

However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which are likely to affect its margins and profitability. Supply-chain disruptions in the defense market continue to take a toll on its operations. Also, foreign exchange headwinds might be worrying for the company.

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

Shares of Cemtrex have underperformed the Zacks Electronics - Miscellaneous Components industry over the past year (-100% vs. +1.5%). This microcap company with market capitalization of $4.82 million have weak profitability, with a $5.3 million operating loss, rising expenses, and a 6.8% decline in security revenue to $32 million. Elevated debt, declining gross margins, rising operating expenses and intense market competition pose significant challenges.

Industrial market cyclicality and reliance on acquisitions further temper Cemtrex’s long-term outlook despite growth tailwinds in industrial and security markets. Nevertheless, Cemtrex delivered a 12.6% revenue increase to $66.9 million in fiscal 2024. This is driven by 39.3% growth in its AIS segment to $34.8 million, supported by the Heisey Mechanical acquisition and a strong project backlog.

The launch of Vicon’s AI-powered NEXT camera system and Anavio cloud platform enhances its competitive position in the $83.3 billion video surveillance market, expected to witness a 9.2% CAGR by 2032.

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

Other noteworthy reports we are featuring today include Walmart Inc. (WMT), Sony Group Corp. (SONY) and Automatic Data Processing (ADP).

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>>>