Friday, May 28, 2021
 

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 Facebook, Inc. (FB), Visa Inc. (V) and The Walt Disney Company (DIS). 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 Facebook have underperformed the Zacks Internet – Services industry in the year-to-date period (+21.8% vs. +26.1%). Notably, Facebook expects changes made by Apple in its iOS 14 platform to limit the latter’s ability to track user-activity trend. The company also believes that Apple has become its biggest competitor. Moreover, increasing regulatory headwinds in the EU and other countries is a concern.
 

However, Facebook is also benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its products like Instagram, WhatsApp and Messenger is a major growth driver, per the Zacks analyst.
 

Additionally, strong advertising revenues benefited from the ongoing shift to online commerce. Hence, Facebook expects advertising revenues to grow in the rest of 2021. For second quarter of 2021, it expects year-over-year revenue growth to remain stable or modestly accelerate compared with the growth rate in the first quarter of 2021.
 

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

Shares of Visa have outperformed the Zacks Financial Transaction Services industry in the last one-year period (+16.2% vs. +10.5%). The Zacks analyst believes that Visa’s numerous acquisitions and alliances paved the way for long-term growth and consistently drove revenues. Technological upgrades bode well. Shift in payments to the digital modes is a boon too.
 

Moreover, the coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding business volumes in turn. However, high operating expenses stress the operating margins. Ramped-up client initiatives will dent the top line. Also, a sluggish cross-border business due to the pandemic looms on.
 

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

Walt Disney shares have lost some ground lately, but they have been standout perfomers others, up +52.6% in the last one-year period against the S&P 500 index's +40.1% gain. The company is not only seen as a prominent reopening play through its resorts and cruise line businesses, but has also established itself as a worthy rival to Netflix in the streaming business.
 

Disney is benefitting from the growing popularity of Disney+, owing to a strong content portfolio and a cheaper bundle offering as reflected by second-quarter fiscal 2021 results. Availability in the Nordics, Latin America and other Asian territories will help in further expanding user base. Additionally, reopening of California theme parks will boost top-line growth. Further, reopening of theaters as COVID-19 restrictions are lifted will drive Disney’s studio business.
 

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

Other noteworthy reports we are featuring today include Exxon Mobil Corporation (XOM), Raytheon Technologies Corporation (RTX) and General Electric Company (GE).

Zacks Names “Single Best Pick to Double”
 

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
 

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
 

Free: See Our Top Stock and 4 Runners Up >>
 

Sheraz Mian
 

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>>>