Financial Insights: Meta, Honeywell, and ADP Lead Market Trends
Wednesday, May 21, 2025
The Zacks Research Daily highlights essential findings from our analyst team. Today’s edition covers 16 significant stocks, including Meta Platforms, Inc. (META), Honeywell International Inc. (HON), and Automatic Data Processing, Inc. (ADP). These reports have been selected from approximately 70 analyses published by our analysts today.
You can see all of today’s research reports here >>>
Ahead of Wall Street: Key Market Insights
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You can read today’s AWS article here >>> Q1 Retailers Report Earnings: TGT Misses, LOW & TJX Beat
Detailed Research Reports
Meta Platforms (META) has outperformed the Zacks Internet – Software industry over the past year, with a growth rate of +36.7% compared to the industry’s +30.6%. The company is experiencing steady user growth, especially in Asia Pacific. Enhanced engagement across platforms like Instagram, WhatsApp, Messenger, and Facebook has driven this growth.
By using AI, META enhances its service effectiveness, reaching over 3.43 billion users daily. Its rising popularity among young adults, bolstered by efficient recommendations, strengthens its market position. AI integration is anticipated to boost revenue, although monetization may take time, raising concerns.
(You can read the full research report on Meta Platforms here >>>)
Honeywell (HON) has also outpaced the Zacks Diversified Operations industry, reporting a +13.3% growth versus +11.1% for its peers. The company’s robust performance in commercial aviation and building automation is promising. The Aerospace segment shows significant strength, particularly in defense and the rising air transport flight hours.
The commercial aviation aftermarket is benefiting from strong demand. Additionally, Honeywell continues to reward shareholders, enhancing its stock appeal. Yet, increased debt from acquisitions raises concerns. Weakness in the Industrial Automation segment, particularly for smart energy solutions, also warrants attention.
(You can read the full research report on Honeywell here >>>)
Automatic Data Processing (ADP) has outperformed the Zacks Internet – Software industry this year, achieving a +10.9% growth compared to +6.7% for the industry. The company aims to expand through its three-tier business strategy and transformation initiatives, which are essential for innovating and improving margins.
Acquisitions are integral to ADP’s international operations. This stock is also appealing for dividend-seeking investors. A recent rise in the current ratio indicates a strong liquidity position. However, increasing expenses from acquisitions pose profitability risks, alongside high competition inflating talent costs.
ADP’s stock has increased by 29.8% over the year, prompting a Neutral recommendation as we anticipate a market correction.
(You can read the full research report on Automatic Data Processing here >>>)
Other noteworthy reports today include Quanta Services, Inc. (PWR), Tractor Supply Co. (TSCO), and Pilgrim’s Pride Corp. (PPC).
Mark Vickery
Senior Editor
Additional Highlights
Today’s Must Read:
- Expanding AI Usage Drives Meta Platforms’ (META) Prospects
- Aerospace Technologies Unit Aids Honeywell (HON), Costs Hurt
- Transformation Initiatives Aid ADP, Escalating Expenses Hurt
Featured Reports:
- Robust Public Spending Aids Quanta (PWR), Macro Risks Hurt: Strong infrastructure demand is driving Quanta’s growth, despite macro challenges.
- Investments to Boost Tractor Supply’s (TSCO) Market Share: The focus on customer-driven product categories is enhancing market penetration.
- Pilgrim’s Pride (PPC) Progresses With Strategic Growth Plans: Operational efficiency improvements are boosting margins.
- Cologuard Growth Aids Exact Sciences (EXAS), Cost Woes Stay: While Cologuard shows momentum, rising costs risk profitability.
- Ayvakit Sales Boosts Blueprint (BPMC), Overdependence a Woe: Demand for Ayvakit fuels BPMC’s growth, but reliance on this product raises concerns.
Axsome’s (AXSM) Marketed Drugs Drive Growth Amid Competition: Ongoing performance is being supported by strong product offerings despite competitive pressures.
F.N.B. Corp Faces Challenges Amid Cost Concerns and Buyouts
F.N.B. Corp is navigating a complex landscape as its lead drug, Auvelity, gets approval for treating major depressive disorder. This approval is expected to boost sales, alongside the promising addition of Sunosi. Nonetheless, the company must contend with significant competition.
Buyouts and Loans Support F.N.B. Corp’s Financial Outlook
According to Zacks analysts, F.N.B. Corp appears to be well-positioned thanks to relatively high interest rates, a strong loan demand, and strategic buyouts. However, concerns loom over deteriorating asset quality and rising operational costs that could impact overall financial performance.
New Upgrades in the Market
Strong Demand Drives Growth at Carpenter Technology (CRS)
Carpenter Technology is benefiting from robust demand across its various end-use markets. Cost-reduction initiatives, along with efforts to maintain liquidity, are critical to driving sustained growth, according to Zacks analysts.
Blackbaud (BLKB) Thrives from Product Portfolio and Buyback Strategy
Blackbaud is seeing gains due to a solid product lineup and a consistent share repurchase strategy. These factors, combined with margin expansion, are positively influencing profitability.
Pediatrix Medical (MD) Enhances Business Mix Through Restructuring
Pediatrix Medical is optimizing its portfolio and increasing cash levels through strategic restructuring. The expansion of telehealth services is also expected to contribute to profit growth.
New Downgrades Noted
Murphy Oil (MUR) Faces Commodity Price Fluctuations
Zacks analysts warn that Murphy Oil’s future may be adversely affected by volatile commodity prices. Additionally, heightened competition within the industry could impact profitability.
Permian Resources (PR) Struggles with Capital Intensity
Despite improvements in efficiency, Permian Resources may face limitations due to high capital intensity and integration costs related to its Earthstone acquisition, as highlighted by Zacks analysts.
Weak Oil Market Poses Risks for ConocoPhillips (COP)
ConocoPhillips is under pressure from declining oil demand and faster-than-anticipated OPEC+ production cuts, which are dragging prices down. These factors pose risks to cash flow and earnings growth, according to Zacks analysts.
Industry Update: Semiconductor Market Set to Boom
The semiconductor market is projected to grow significantly, from $452 billion in 2021 to $803 billion by 2028. Companies with strong earnings growth and an expanding customer base are poised to benefit from the escalating demand for AI, machine learning, and Internet of Things technologies.
For additional insights and stock analysis, various leading companies such as Automatic Data Processing, Honeywell International, and Quanta Services continue to attract attention in the market.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
