Thursday, January 30, 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 Alibaba Group Holding Ltd. (BABA), Airbnb, Inc. (ABNB) and Royal Caribbean Cruises Ltd. (RCL), as well a micro-cap stock DallasNews Corp. (DALN). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 open 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 >>> Jobless Claims, GDP Fall; More Earnings
Today's Featured Research Reports
Shares of Alibaba have gained +37% over the past year against the Zacks Internet - Commerce industry’s gain of +51.8%. The company is benefiting from strong momentum across its international commerce retail business. Solid combined order growth in AIDC’s retail businesses and strength in AliExpress’ Choice are contributing well.
Growing international commerce wholesale business, thanks to strength in cross-border-related value-added services, is a tailwind. Expanding China's wholesale commerce business remains a major positive. Robust local consumer services and Cainiao logistics services are further driving top-line growth.
Strength in Lazada, AliExpress and Trendyol is expected to continue benefiting Alibaba’s international business. However, rising expenses related to new initiatives are a concern. Macroeconomic uncertainties and unfavorable foreign exchange fluctuations remain risks.
(You can read the full research report on Alibaba here >>>)
Airbnb’s shares have underperformed the Zacks Leisure and Recreation Services industry over the past year (-8% vs. +28.5%). The company is facing greater volatility in travel demands due to macroeconomic uncertainties, rising competition and impacts of geopolitical conflicts remain concerns.
Nevertheless. Airbnb is benefiting from continuous improvements in Nights and Experiences Booked, enabling it to witness a positive trend in its Gross Booking Value. Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers, is a tailwind.
Increasing guest demand and continuous recovery in cross-border travel are major positives. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, is benefiting the top line. Moreover, growing awareness around hosting and new features introduced for hosts is a plus.
(You can read the full research report on Airbnb here >>>)
Shares of Royal Caribbean Cruises have outperformed the Zacks Leisure and Recreation Services industry over the past six months (+72.5% vs. +26.8%). The company reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate while the revenues missed. Notably, both top and bottom lines increased on a year-over-year basis.
It is benefiting from strong cruising demand from new and loyal guests and robust booking trends. Also, strength in consumer spending onboard and pre-cruise purchases bodes well. The company emphasized investing in a modern digital travel platform to streamline the vacation booking process for its customers and expand wallet share.
In the first quarter of 2025, management estimates EPS to be in the band of $2.43-$2.53. However, increased costs and expenses, foreign currency risks and global macro headwinds are concerning for the company’s prospects.
(You can read the full research report on Royal Caribbean Cruises here >>>)
DallasNews’ shares have outperformed the Zacks Publishing - Newspapers industry over the past year (+68.4% vs. +13.6%). This microcap company with market capitalization of $37.74 million is transitioning to a modern, cost-efficient printing facility in Carrollton, aiming to cut expenses and enhance profitability by Q1 2025. The sale of its Plano property is expected to generate proceeds for reinvestment.
Digital subscription growth has gained momentum, with over 3,100 new subscribers in Q3 and 2,500 in early Q4 2024, supported by a revised pricing model. Medium Giant, its marketing division, reported a $400,000 Y/Y revenue increase in Q3, bolstering diversification efforts. Investments in digital innovation, including a video platform and enhanced user engagement tools, further align with its digital transformation strategy.
However, print revenue continues to decline, with an 8.8% Y/Y drop in subscribers. Digital advertising revenue fell, reflecting challenges in offsetting traditional revenue losses. Cash reserves dropped to $11.6 million.
(You can read the full research report on DallasNews here >>>)
Other noteworthy reports we are featuring today include Eli Lilly and Co. (LLY), Lululemon Athletica Inc. (LULU) and Edwards Lifesciences Corp. (EW).
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
Alibaba (BABA) Benefits From Strength in Retail Business
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Royal Caribbean's (RCL) Solid Booking Trends Aid Revenues
Featured Reports
Lilly's (LLY) Mounjaro, Zepbound Key to Sales Growth
The Zacks analyst believes that Lilly's popular drugs Mounjaro and Zepbound are key to sales growth even though their sales were soft in the second half of 2024 due to slower-than-expected growth.
lululemon's (LULU) International Business Well Poised for Growth
Per the Zacks analyst. lululemon witnesses strong business momentum in international markets, including Mainland China and the Rest of the World, as the brand connects well with customers globally.
Edwards (EW) Rides on Solid TMTT Sales and Global Prospects
Edwards' strong TMTT sales globally is a major positive. Per the Zacks analyst, differentiated therapies, positive pivotal trial results and favorable real-world clinical outcomes are the key drivers.
Improving Commissions and Fees Drive Brown and Brown (BRO)
Per the Zacks analyst, Brown and Brown is set to grow on higher commissions and fees, driven by net new and renewal business that in turn drive top line. Yet, increasing expenses concern.
Growth Projects Aid Kinross Gold (KGC) Amid Cost Woes
Per the Zacks analyst, Kinross will benefit from the progress of its key development projects, which will boost production and cash flows. However, high production costs will weigh on its margins. n
Buyout Strategy Benefits Interpublic (IPG), Seasonality Ails
Per the Zacks analyst, Interpublic's acquisition strategy enables it to expand its product portfolio and tackle the dynamic market services. Seasonality in business is an overhang.
Agency MBS to Aid AGNC Investment (AGNC), Volatility Hurts
Per the Zacks analyst, the Fed's rate cuts will create a favorable outlook for Agency MBS, driving attractive returns for AGNC Investment. Yet, mortgage market volatility might hurt its growth.
New Upgrades
Healthy Growth Momentum, Solid AI Focus Aid Workday (WDAY)
Per the Zacks Analyst, Workday is set to benefit from solid momentum across top verticals and product lines. Management's focus on integrating AI capabilities across the product suite is a tailwind.
Twilio (TWLO) Banks on Growing Active Customer Accounts
Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
Investments, Expanding Customer Base Aid MDU Resources (MDU)
Per the Zacks analyst, MDU Resources' investments will fortify its infrastructure. Strong assets will allow MDU to meet rising demand from its expanding customer base and benefit from same.
New Downgrades
Persistent Supply Chain Issues Hurt Hexcel Corporation (HXL)
Per the Zacks analyst, Hexcel Corporation is likely to lose from increasing supply-chain costs which may affect its operating results in the near term.
NOV Inc. (NOV) Stung by North American Land Weakness
The Zacks analyst believes that a decline in North American land activity, particularly in NOV's Energy Products & Services segment, could constrain the company's short-cycle revenue.
T-Mobile (TMUS) Plagued by Stiff Competition, Premium Valuation
Per the Zacks analyst, intensifying competition in the highly saturated U.S. wireless market will likely impact T-Mobile's margin. Its premium valuation remains a concern.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
DallasNews Corporation (DALN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
