Meta, JPMorgan, and Intercontinental Exchange Highlight Today’s Financial Insights
Friday, May 2, 2025
The Zacks Research Daily presents the top research findings from our analyst team. Today’s analysis includes reports on 16 major stocks, such as Meta Platforms, Inc. (META), JPMorgan Chase & Co. (JPM), and Intercontinental Exchange, Inc. (ICE). These reports have been carefully selected from approximately 70 published today.
See all of today’s research reports here >>>
Ahead of Wall Street: Economic Insights and Market Impact
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Today’s AWS features the following important update: BLS Jobs +177K, Better than Expected; Unemployment +4.2%
Today’s Featured Research Reports
Meta Platforms has shown robust performance, with shares rising 31.3% compared to the Zacks Internet – Software industry, which gained 21.9% over the past year. The company sees consistent user growth, especially in Asia Pacific, with increased engagement through platforms like Instagram, WhatsApp, Messenger, and Facebook.
Utilizing AI technology, Meta’s services now reach over 3.43 billion users daily. Its appeal to younger demographics, enhanced by improved recommendations, positions it favorably among advertisers, likely driving further top-line growth. The company plans substantial investments in AI development, although monetizing these innovations may take time.
(Read the full research report on Meta Platforms here >>>)
JPMorgan Chase shares outperformed the Zacks Financial – Investment Bank industry, rising 34.9% against a 23.5% increase in the sector over the past year. The company’s Q1 2025 results indicated strong capital markets performance and loan demand. Solid business expansions, increased loan demand, and rising interest rates support an expected compound annual growth rate (CAGR) of 3% for net interest income (NII) by 2027.
Although a resurgence in deal-making is anticipated to be gradual, a healthy pipeline should bolster the Investment Banking (IB) sector, which is expected to see IB fees grow at a CAGR of 2.1% by 2027. However, the fluctuating nature of the capital markets and high mortgage rates may constrain fee income growth. Analysts forecast a 6.2% decline in fee income for 2025, driven by high expenses related to technology and marketing investments.
(Read the full research report on JPMorgan Chase here >>>)
Intercontinental Exchange has outperformed the Zacks Securities and Exchanges industry year-to-date with a 16.3% increase, compared to the sector’s 13.6%. Growth is attributed to a comprehensive product and service portfolio, strong risk management offerings, and global data services.
Ongoing strength in its energy franchise and improving recurring market data revenues are expected to sustain growth. Strategic acquisitions aid in achieving cost synergies which align with its goal of generating long-term shareholder value. The company is well-positioned for growth amid accelerating digitization in the U.S. residential mortgage sector.
While Intercontinental Exchange actively deploys capital, high expenses are anticipated in the near term. The company faces additional risks from foreign currency fluctuations, stricter regulations, high interest expenses, and elevated leverage.
(Read the full research report on Intercontinental Exchange here >>>)
Other Noteworthy Reports
Additional featured reports include Microsoft Corp. (MSFT), GoPro, Inc. (GPRO), and HCA Healthcare, Inc. (HCA).
Mark Vickery
Senior Editor
Today’s Must Read
- Expanding AI Usage Drives Meta Platforms’ (META) Prospects
- Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails
- Intercontinental (ICE) Banks on Acquisitions Amid High Costs
Featured Reports
- Microsoft (MSFT): Gains from cloud and Office 365 adoption.
- GoPro (GPRO): Strength in subscription revenues but macroeconomic concerns persist.
- HCA Healthcare (HCA): Increasing admissions boost volume but rising expenses pose margin risks.
- Constellation Energy (CEG): Focus on renewable energy enhances growth prospects.
- Norfolk Southern (NSC): Strong dividends despite freight challenges.
- Keurig Dr Pepper (KDP): Strength in its Refreshing Beverages segment.
- lululemon’s (LULU): Positive momentum in international markets.
New Upgrades
Growth projects and Kirkland buyout positively impact Agnico Eagle.
# Stock Insights: Growth Prospects and Recent Downgrades
Investment Strategies and Growth Potential
(AEM) – According to Zacks analysts, the company is expected to benefit significantly from increased investment in growth projects aimed at expanding output. The acquisition of Kirkland Gold has also created a pipeline of extensive exploration projects.
Expand Energy (EXE) Set for Positive Growth
The Zacks analyst believes that strong production growth, fueled by rising natural gas demand and an optimistic outlook for 2025, can enhance Expand Energy’s earnings potential.
Spirit AeroSystems (SPR) Gains from Defense Contracts
Increasing defense orders are likely to provide Spirit AeroSystems with a boost. The company is also seeing heightened activity in the Sikorsky CH-53K program, which is contributing to its growth prospects.
New Downgrades Due to Market Challenges
Weak Demand and Rising Costs Affecting DENTSPLY SIRONA (XRAY)
The Zacks analyst notes that DENTSPLY SIRONA is facing challenges due to weakened global demand, along with increased raw material, supply chain, and service costs. Additionally, the higher cost of capital is negatively impacting both top- and bottom-line results.
Lower Volumes and High Costs Impact UFP Industries (UFPI)
UFP Industries is struggling with lower sales volumes, a reduction in selling prices, and an unfavorable product mix. The Zacks analyst indicates that elevated material costs further exacerbate the situation.
Dismal Comparisons and High Expenses Weigh on Starbucks (SBUX)
Starbucks faces headwinds from an uncertain macroeconomic landscape. According to the Zacks analyst, the company is grappling with tepid sales comparisons and elevated expenses resulting from increased in-house investments.
Stocks to Watch: Potential for Significant Returns
Several stocks are highlighted by Zacks experts for their potential to double in value. While not every selection will succeed, previous picks have seen remarkable gains, with increases reaching +143.0%, +175.9%, +498.3%, and +673.0%.
These stocks, often flying under Wall Street’s radar, present an opportunity for early investment.
For further insights, consider exploring these promising stocks and their prospects.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
