Top Stock Reports for Meta Platforms, Honeywell & Automatic Data Processing

Wednesday, May 21, 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), Honeywell International Inc. (HON) and Automatic Data Processing, Inc. (ADP). 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 >>>

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You can read today's AWS here >>> Q1 Retailers Report Earnings: TGT Misses, LOW & TJX Beat

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+36.7% vs. +30.6%). 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 more 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 Honeywell have outperformed the Zacks Diversified Operations industry over the past year (+13.3% vs. +11.1%). The company’s strength in the commercial aviation and building automation businesses augurs well. The Aerospace segment is particularly strong, driven by strength in the defense business and growth in air transport flight hours. 

Strong demand across the commercial aviation aftermarket business is aiding the segment. The company also continues to reward shareholders, which adds to the stock’s appeal. While acquisitions have expanded its product range and geographic reach, they have increased the company’s balance sheet debt as well. 

However, weakness in the Industrial Automation segment, due to lower demand for smart energy and thermal solutions, is worrisome. The weakened demand for personal protective equipment within the sensing and safety technologies business is also concerning. Foreign currency translation remains an overhang.

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

Automatic Data Processing’s shares have outperformed the Zacks Internet - Software industry over the year-to-date period (+10.9% vs. +6.7%). The company aspires to grow on the back of its three-tier business strategy and use its transformation initiatives to innovate and expand margins. Acquisitions have been pivotal in ADP’s ability to operate across borders. 

Automatic Data Processing pursues buyouts that complement the overall business mix. This stock is an eye candy for dividend-seeking investors. The recent rise in the current ratio suggests a robust liquidity position for the company. Meanwhile, rising expenses due to acquisitions and investments are worrisome and can affect profitability. 

Automatic Data Processing faces high competition, which shoots talent costs sky-high and can affect the company’s growth. The stock increased 29.8% in a year and we have a Neutral recommendation on it in anticipation of a correction.

(You can read the full research report on Automatic Data Processing here >>>)

Other noteworthy reports we are featuring today include Quanta Services, Inc. (PWR), Tractor Supply Co. (TSCO) and Pilgrim's Pride Corp. (PPC).
 

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

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
Per the Zacks analyst, Quanta's prospects are driven by strong infrastructural demand, resulting in a growing backlog and balanced capital approach. However, macro risks and inflation hurt trends.

Investments to Boost Tractor Supply's (TSCO) Market Share
Per the Zacks analyst, Tractor Supply's focus on needs-based product categories and a U.S.-sourced assortment has resonated with customers, contributing to its market share expansion.

Pilgrim's Pride (PPC) Progresses With Strategic Growth Plans
Per the Zacks analyst, Pilgrim's Pride is making strong progress in operational efficiency, Prepared Foods expansion, and cost management, driving higher margins and improved profitability.

Cologuard Growth Aids Exact Sciences (EXAS), Cost Woes Stay
The Zacks analyst is impressed with Exact Sciences' Cologuard test momentum, led by rescreens, care gap programs and growth in new ordering providers. Yet, mounting costs bring profitability risks.

Ayvakit Sales Boosts Blueprint (BPMC), Overdependence a Woe
Per the Zacks analyst, increased demand for Ayvakit should fuel BPMC's growth in the quarters ahead. However, overdependence of the topline on the drug's sales is concerning.

Axsome's (AXSM) Marketed Drugs Drive Growth Amid Competition
Per the Zacks analyst, Axsome's lead drug, Auvelity, approved for treating major depressive disorder is driving sales. The addition of Sunosi bodes well too. However, stiff competition remains a woe

Buyouts, Loans Aid F.N.B. Corp (FNB), Asset Quality a Woe
Per the Zacks analyst, relatively high rates, decent loan demand and strategic buyouts are likely to support F.N.B. Corp's financials, while deteriorating asset quality and rising costs are concerns.

New Upgrades

Solid Demand, Pricing Actions Aid Carpenter Technology (CRS)
Per the Zacks analyst, Carpenter Technology is gaining from strong demand across its end-use markets. Cost-reduction initiatives and efforts to preserve liquidity are also driving growth.

Blackbaud (BLKB) Gains on Robust Portfolio & Buyback Plan
Per the Zacks analyst, Blackbaud is gaining from a robust product portfolio, a steady share repurchases strategy, and margin expansion, which is boosting profitability.

Pediatrix Medical (MD) Aided by Portfolio Rejig & Telehealth
Per the Zacks analyst, Pediatrix Medical's portfolio restructuring efforts will continue to improve its business mix and cash level. Its expanding telehealth services will further drive profits.

New Downgrades

Flucuating Commodity Price, Competition Ail Murphy (MUR)
Per the Zacks analyst Murphy Oil future prospects can be adversely impacted by the fluctuating commodity prices, while competitive industry can affect its profitability.

Permian Resources (PR) Hurt by High Capital Intensity
The Zacks analyst notes that while Permian Resources is improving efficiency, high capital intensity and integration costs from Earthstone acquisition may limit its near-term upside.

Weak Oil Market Threatens ConocoPhillips' (COP) Earnings
Per the Zacks analyst, COP faces pressure as falling oil demand and faster-than-expected OPEC+ cuts drag prices down, posing risks to cash flow, earnings growth, and overall stock performance.

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

Zacks Investment Research