Friday, May 2, 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), JPMorgan Chase & Co. $(JPM)$ and Intercontinental Exchange, Inc. $(ICE)$. 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> BLS Jobs +177K, Better than Expected; Unemployment +4.2%

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+31.3% vs. +21.9%). 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 3.43 billion people daily. Meta Platforms’ 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 Platforms now expects to invest significantly 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 JPMorgan Chase have outperformed the Zacks Financial - Investment Bank industry over the past year (+34.9% vs. +23.5%). The company’s first-quarter 2025 results reflected solid capital markets performance and loan demand. Business expansion efforts, decent loan demand and higher rates support net interest income (NII). We expect NII (managed) to show a CAGR of 3% by 2027. 

While a solid resurgence in deal-making activities is likely to take time, a solid pipeline will drive the Investment Banking (IB) business. We expect IB fees to witness a CAGR of 2.1% by 2027. Yet the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. 

The Zacks analyst estimate for the metric shows a 6.2% fall in 2025. As it invests in technology and marketing, expenses are expected to remain high. Our estimates for non-interest expenses imply a CAGR of 2.9% by 2027. Weak asset quality is a concern.

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

Intercontinental Exchange’s shares have outperformed the Zacks Securities and Exchanges industry over the year-to-date period (+16.3% vs. +13.6%). The company’s top line benefits from its compelling product and service portfolio, the broad range of risk management services and strength in global data services. 

Continued strength in its energy franchise and improving recurring market data revenues are likely to keep growth on track. Strategic buyouts help it achieve cost synergies that are in sync with its aim of generating long-term value for shareholders. It is well-poised for growth due to accelerated digitization in the U.S. residential mortgage industry. 

Intercontinental Exchange also engages in the effective deployment of capital. However, expenses are likely to remain high in the near term. Foreign currency fluctuations and stricter regulations raise concerns. High interest expenses and high leverage pose risk.

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

Other noteworthy reports we are featuring today include Microsoft Corp. $(MSFT)$, GoPro, Inc. $(GPRO)$ and HCA Healthcare, Inc. $(HCA)$.

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

Expanding AI Usage Drives Meta Platforms' (META) Prospects

Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails

Intercontinental $(ICE.AU)$ Banks on Acquisitions Amid High Costs

Featured Reports

Adoption of Cloud & Office 365 Strength Aid Microsoft $(MSFT.UK)$
Per the Zacks analyst, Microsoft gains from enterprise strength, robust Office 365 & Azure adoption. Further, solid adoption of Azure AI and Copilot capabilities remains a tailwind.

GoPro (GPRO) Gains from Strength in Subscription Revenues
Per the Zacks analyst, GoPro is gaining from the strength in subscription revenues, backed by improving retention rates. However, macroeconomic and forex woes remain a concern.

Rising Admissions Aid HCA Healthcare (HCA) Amid High Cost
Per the Zacks analyst, HCA Healthcare's increasing admissions will boost patient volumes and bottomline. However, rising expenses can hinder its margin growth.

Focus on Renewable Energy Aid Constellation Energy $(CEG)$
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output

Norfolk Southern $(NSC)$ Strong on Dividends Amid Freight Woes
The Zacks analyst is concerned about the challenging freight environment. Efforts to reward shareholders, however, bode well for the company.

Keurig Dr Pepper $(KDP)$ Gains From Refreshment Beverage Unit
Per the Zacks analyst, Keurig Dr Pepper is experiencing strength in its Refreshing Beverages segment. The segment's sales grew 11% year over year in the first quarter of 2025.

lululemon's $(LULU)$ International Business Well Poised for Growth
Per the Zacks analyst. lululemon witnesses strong business momentum in international markets, including Mainland China and the Rest of the World, as the brand connects well with customers globally.

New Upgrades

Growth Projects, Kirkland Buyout Aid Agnico Eagle $(AEM)$
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output. The Kirkland Gold acquisition has also provided an extensive pipeline of exploration projects.n

Expand Energy $(EXE)$ to Gain from Strong Production Growth
The Zacks analyst believes that strong production growth driven by rising natural gas demand and a positive 2025 outlook can boost Expand Energy's earning potential.

Increasing Defense Orders Drive Spirit AeroSystems $(SPR)$
Per the Zacks analyst, Spirit AeroSystems is likely to benefit from increasing defense orders and higher activity in the Sikorsky CH-53K program.

New Downgrades

Weak Demand and Rising Costs Hurt DENTSPLY SIRONA $(XRAY)$
Per the Zacks analyst, the weakened global demand and increased raw material, supply chain and service costs coupled with higher cost of capital is adversely affecting DENTSPLY SIRONA's top- and botto

Lower Volumes & High Costs Hurt UFP Industries (UFPI)
Per the Zacks analyst, UFP Industries is hurting from lower volumes, reduction in selling prices and a less favorable product mix. Also, higher material costs are added concerns.

Dismal Comps Trend & High Expenses Hurt Starbucks $(SBUX)$
Per the Zacks analyst, Starbucks is hurting from an uncertain macro scenario, highlighting tepid comps trend and high costs and expenses due to a hike in in-house investment trends.

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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

GoPro, Inc. (GPRO) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

Meta Platforms, Inc. (META) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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