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>>>