Top Research Reports for Meta Platforms, Broadcom & JPMorgan

Tuesday, June 3, 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), Broadcom Inc. (AVGO) and JPMorgan Chase & Co. (JPM). 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 >>> Pre-Markets Slightly Lower Ahead of Open; JOLTS, Earnings to Come

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+41.2% vs. +38.4%). 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 may be a concern.

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

Shares of Broadcom have outperformed the Zacks Electronics - Semiconductors industry over the past year (+88.5% vs. +26.4%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs), as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth. 

Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted VMware Cloud Foundation. 

Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in its fiscal Q2 is expected to contract sequentially on unfavorable revenue and product mix. High debt levels are a headwind.

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

JPMorgan’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+36.1% vs. +31.4%). The company’s first-quarter 2025 results reflected solid capital markets performance and loan demand. Business expansion efforts, decent loan demand and high rates support net interest income (NII). 

The Zacks analyst expects NII (managed) to show a CAGR of 2.4% 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 2.2% by 2027. 

Yet, the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. Our 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 2.4% by 2027. Weak asset quality is a concern.

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

Other noteworthy reports we are featuring today include Carvana Co. (CVNA), Agnico Eagle Mines Ltd. (AEM) and Entergy Corp. (ETR).

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

Strong Demand for Networking Products Aids Broadcom (AVGO)

Buyouts, High Rates Aid JPMorgan (JPM) Amid Fee Income Woes

Featured Reports

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.

Investments Aid Entergy Corporation (ETR) Amid Poor Solvency
Per the Zacks analyst, Entergy Corporation makes disciplined investment to maintain and upgrade the reliability of its electric utility systems.

Arch Capital (ACGL) Poised to Grow on Solid Premium Growth
Per the Zacks analyst, Arch Capital is set to grow on solid Insurance and Reinsurance business driving improvement in premiums. However, exposure to cat loss inducing underwriting volatility concerns.

Western Midstream (WES) Banks on Long-Term Expansion Project
Per the Zacks analyst, Western Midstream is expanding on long-term infrastructure projects, though high costs and falling gas volumes raise concerns.

Strength in Public Spending Aids KBR's Growth, High Costs Ail
Per the Zacks analyst, KBR is gaining from strong secular growth trends across diverse sectors and its asset-light model. However, ongoing macro risks and inflated costs are marring prospects.

Glaukos' (GKOS) Strong Glaucoma Franchise Offset Competition
Per the Zacks analyst, Glaukos' key franchise, Glaucoma, along with Corneal Health continue on their growth trend due to strong demand which is likely help the company fight off stiff competition.

National Vision (EYE) Banks on Top Cohorts, Rivalry Grows
The Zacks analyst is impressed with the ongoing momentum in National Vision's three target customer cohorts' managed care, progressive, and outside Rx customers. Yet, fierce rivalry may hurt growth.

New Upgrades

Growth in Retail Unit Sales & EBITDA Aid Carvana (CVNA)
Per the Zacks analyst, an expected increase in year-over-year growth of retail unit sales is likely to boost Carvana's top line. Its focus on driving adjusted EBITDA per unit also bodes well.

InterDigital (IDCC) Rides on Solid Licensing Momentum, AI Focus
Per the Zacks analyst, healthy licensing momentum in the smartphone business combined with a strong focus on AI innovation for wireless and video technology will likely boost InterDigital top line.

Amarin (AMRN) Rides on Robust Vascepa Sales Performance in EU
Per the Zacks analyst, label expansion of Amarin's sole marketed drug, Vascepa, in European markets is driving the top line. The recent restructuring plan to streamline operations also holds promise.

New Downgrades

Amicus' (FOLD) High Dependence on Galafold for Revenues a Woe
Per the Zacks analyst, Amicus remains heavily dependent on lead drug, Galafold, for revenue, which is a concern. Any regulatory setback for the drug will weigh heavily on the stock.

Delta Air Lines (DAL) Continues to Grapple With Rising Expenses
The Zacks Analyst is worried about the fact that increased labor and airport costs does not bode well for Southwest Airlines' bottom line.

Molson Coors (TAP) Q1 Volumes Drop Sharply Amid Demand
Per the Zacks analyst, Molson Coors' volumes sank as macro headwinds, weak demand, and lost contracts hit key regions hard. In first quarter of 2025, Americas volume fell 15.6%, EMEA&APAC fell 9.7%.

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

Zacks Investment Research