Tuesday, November 14, 2023

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), Walmart Inc. (WMT) and Pfizer Inc. (PFE). 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 outperformed the Zacks Internet - Software industry over the past six months (+37.8% vs. +15.8%). 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 Platforms’ is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects.

However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.

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

Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past six months (+10.8% vs. +8.1%), with the outperformance expected to continue on the back of another strong result later this week. Robust omnichannel operations aimed at improving the overall shopping experience is driving the company’s financials. Walmart’s strategic focus on enhancing delivery services has been especially rewarding.

This is evident from the constant increase in the market share for groceries, which boosted U.S. comparable sales in the second quarter of fiscal 2024. During the quarter, the top and bottom lines grew year over year, encouraging management to raise its guidance for fiscal 2024.

Strong comp sales growth globally and e-commerce growth across all units were upsides. While the gross margin increased year over year, it was partly hurt by an adverse category mix, which is likely to linger in the third quarter. Management also expects variable pay expenses to increase year over year in the third quarter.

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

Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the past six months (-20.0% vs. +2.1%). The company’s top line is declining in 2023 due to steep declines in revenues from its COVID-19 products, Comirnaty vaccine and Paxlovid oral pill, on lower demand.

In October, Pfizer slashed its previously issued revenue guidance for 2023 due to lower-than-expected demand for Comirnaty and Paxlovid. Nonetheless, Pfizer boasts a diversified portfolio of innovative drugs and vaccines, including Ibrance and Prevnar.

Pfizer is witnessing solid pipeline progress and is launching some key non-COVID products in 2023, which can drive long-term sales and profit growth. Huge profits from its COVID products strengthened its cash position. Estimates have declined sharply of Q3 earnings. Pfizer has a positive record of earnings surprises in the recent quarters.

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

Other noteworthy reports we are featuring today include Intel Corporation (INTC), Enterprise Products Partners L.P. (EPD) and Ecolab Inc. (ECL).

Director of Research

Sheraz Mian

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>>>