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Chicago, IL – September 18, 2024 – Zacks.com announces the list of stocks featured on the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured on the blog include: Meta Platforms, Inc. META, Texas Instruments Inc. TXN, The Charles Schwab Corp. SCHW and IDT Corp. IDT.

Here are the highlights from Wednesday’s analyst blog:

Top Research Reports for Meta, Texas Instruments and Schwab

The Zacks Research Daily showcases the best research from our team of analysts. Today’s Research Daily includes new research reports on 16 major stocks, including Meta Platforms, Inc., Texas Instruments Inc. and The Charles Schwab Corp., as well as one micro-cap stock, IDT Corp. Zacks Micro-Cap research is unique because our research content on these small and lesser-known companies is the only one of its kind in the country.

These research reports were handpicked from the approximately 70 reports published today by our team of analysts.

You can All today’s research reports can be found here >>>

Meta-platforms Shares have outperformed the Zacks Internet Software industry year to date (+51.1% vs. +15.7%). The company is benefiting from steady user growth across all regions, particularly in Asia Pacific. Increasing use of its offerings such as Instagram, WhatsApp, Messenger and Facebook has been a key growth driver.

META uses AI to improve the performance of its platform offerings. These services currently reach more than 3.2 billion people daily. User growth remained solid in the US, with WhatsApp reaching more than 100 million monthly users and Thread approaching the 200 million mark.

Facebook, Instagram and Threads saw good year-on-year growth. Meta now expects to invest significantly more in the next few years to develop more advanced models and the largest AI services in the world. However, monetizing these AI services will take some time, which is a concern.

(You can Read the full research report on metaplatforms here >>>)

Shares of Texas Instruments have gained +19.0% year to date, while the Zacks Semiconductor – General Industry has gained +94.4%. The company is benefiting from solid demand for data centers, which is improving its prospects in the enterprise systems market. Improved conditions in the consumer electronics and communications equipment markets are a plus.

Texas Instruments is benefiting from its increasing investments in new growth areas and competitive advantages. Another plus point is the increasing focus on manufacturing, the introduction of advanced technologies, the expansion of the product portfolio and consistent returns for shareholders.

However, the general weakness in the industrial and automotive markets is a major concern. Weakness in the analog, embedded processing and other segments is a negative. Rising manufacturing costs are hurting profitability. Overall weak demand and growing tensions between the US and China are a cause for concern.

(You can Read the full research report on Texas Instruments here >>>)

Charles Schwab’s have underperformed the Zacks Financial Investment Banks industry year to date (-6.3% vs. +15.7%). As the company struggles with low-yielding assets on its balance sheet, it plans to downsize to generate profits and rely more heavily on off-balance sheet arrangements to house deposits. This will likely put pressure on revenue growth.

Zacks analysts expect total revenues to grow only 1.7% in 2024. In addition, increased expenses are likely to hurt profitability. Although we expect total expenses to decline in 2024, they will rise in 2025. However, higher interest rates are likely to improve the net interest margin (NIM), while rising financing costs and low-yielding assets will weigh on it. We forecast NIM to be 2.13% in 2024.

In addition, strategic acquisitions have increased the company’s client assets. We expect total client assets to grow at a compound annual growth rate of 6.9% through 2026. Sustainable capital distributions are also encouraging.

(You can Read the full research report on Charles Schwab here >>>)

Shares of IDT have outperformed the Zacks Diversified Communication Services industry year to date (+12.0% vs. +8.8%). This microcap company with a market cap of $965.16 million has high-growth and high-margin businesses that improved overall results and increased consolidated gross margin by 310 basis points in the third quarter of fiscal 2024.

NRS leads the growth with over 30,000 active terminals and a 65.9% year-on-year increase in merchant services revenue, indicating robust expansion and profitability. Positive adjusted EBITDA across all segments underscores operational efficiency. IDT’s steady increase in gross profit, cost management and technological advances ensure sustainable growth.

Nevertheless, IDT faces risks from economic downturns, integration issues, cybersecurity threats and international expansion. Declining revenues from traditional telecommunications and rising operating costs pose challenges. Compliance with fintech regulations increases cost pressures and competitive markets require continuous innovation to maintain market share.

(You can Read the full research report on IDT here >>>)

The story continues

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Past performance is no guarantee of future results. Every investment carries the risk of loss. This material is for informational purposes only and does not constitute investment, legal, accounting or tax advice or a recommendation to buy, sell or hold any security. No recommendation or advice is being given as to whether any investment is suitable for any particular investor. No assumption should be made that investments in any security, company, sector or market identified and described have been or will be profitable. All information is current as of the date of publication and is subject to change without notice. The views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities in securities. These returns are derived from hypothetical portfolios consisting of Zacks Rank = 1 stocks that are rebalanced monthly with no transaction costs. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance numbers displayed in this press release.

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Texas Instruments Incorporated (TXN): Free Stock Analysis Report

The Charles Schwab Corporation (SCHW): Free Stock Analysis Report

IDT Corporation (IDT): Free Stock Analysis Report

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

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