Top Stock Reports for Tesla, Bank of America & Alibaba

Monday, January 13, 2025The 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 Tesla, Inc. (TSLA), Bank of America Corporation (BAC) and Alibaba Group Holding Limited (BABA), as well as two micro-cap stocks Seneca Foods Corporation (SENEA) and Nathan's Famous, Inc. (NATH). 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 >>>Tesla shares have outperformed the Zacks Automotive - Domestic industry over the past year (+73.4% vs. +47.8%), likely reflecting the expectation that the worst of the company's competitive challenges that had been weighing on its margins was behind it. The company’s annual deliveries contracted for the first time ever in 2024, but its long-term growth story remains intact driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements.Energy deployments doubled in 2024 and the upward trajectory is set to continue, thanks to the strong reception of its Megapack and Powerwall products. Progress in the autonomous vehicle domain, including plans to launch robotaxi services in 2025, position the company well for sustained growth.Despite potential rebate cuts under a Trump presidency, Tesla is well-positioned to thrive without subsidies, thanks to its cost efficiency and unmatched scale. Tesla’s robust balance sheet, with a high liquidity buffer, supports continued innovation and expansion. As such, we are bullish on the stock.(You can read the full research report on Tesla here >>>)Shares of Bank of America have modestly lagged peer JPMorgan's performance over the past year (+37% vs. +43.4%), but have handily outperformed the S&P 500 index over the same time period (+37% vs. +23%). The stock's strong recent momentum reflects optimism about the operating environment characterized by an easing Fed and expectations of pro-growth and less stringent regulatory policies from the Trump administration. Many in the market expect this performance to get a boost from this week's Q4 earnings release (the company reports Q4 results the morning of Thursday, January 16th). The Zacks analyst projects non-interest income to rise 9.7% in 2024 and only 1.8% in 2025. Due to continued investments in the franchise, costs will remain high. We expect total non-interest expenses to rise 1.2% in 2024. While high funding costs are still a concern, the company’s net interest income (NII) will be positively impacted by rate cuts. We project NII to witness a CAGR of 3.3% by 2026.The company plans to open financial centers in new and existing markets and improve digital capabilities. These will support the top line. We project total revenues to grow 3.1% in 2024.(You can read the full research report on Bank of America here >>>)Alibaba shares have gained +7.8% over the past year against the Zacks Internet - Commerce industry’s gain of +37.8%, with uncertainty about China's economic outlook weighing on the stock. 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 >>>)Shares of Seneca Foods have outperformed the Zacks Food - Miscellaneous industry over the past year (+22.0% vs. -10.2%). This microcap company with market capitalization of $491.59 million demonstrates strong sales momentum with 3.4% growth in net sales for the first six months of fiscal 2025, driven by a 9.9% increase in case volumes (excluding co-pack).Strategic inventory reductions and improved cash flow highlight financial discipline, while its diversified product mix, including brands like Libby’s and Green Giant, supports market leadership in packaged fruits and vegetables.Despite these strengths, rising costs from weather impacts, higher LIFO charges, and a 46.3% decline in net earnings in second-quarter fiscal 2025 present significant profitability risks. For the first six months of fiscal 2025, gross margins fell to 11.7%. Increased interest expenses, competitive pressures, raw material volatility and customer concentration further underscore challenges in sustaining growth.(You can read the full research report on Seneca Foods here >>>)Nathan's Famous shares have outperformed the Zacks Retail - Restaurants industry over the past year (+6.1% vs. +5.9%). This microcap company with market capitalization of $313.66 million has shown consistent growth, with second-quarter fiscal 2025 revenues up 6.1% year over year to $41.1 million and net income up 5.6% to $6 million.The Branded Product Program grew 4.5% in the first half of fiscal 2025, driven by higher hot dog sales and pricing, while licensing royalties rose 12.1% in the first half of fiscal 2025, with Smithfield Foods contributing $20.6 million. Despite expanding its franchise network by 21 locations and the iconic brand and international footprint supporting long-term growth, challenges include declining franchise fees, high debt levels and cost pressures from rising beef prices and labor inflation.Heavy reliance on Smithfield and variability in company-owned location performance underscore risks. Competitive pressures and regulatory uncertainties could further impact margins and growth.(You can read the full research report on Nathan's Famous here >>>)Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), ConocoPhillips (COP) and Southern Copper Corporation (SCCO).Director of ResearchSheraz MianNote: 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 ReadBig Bets on AV and AI to Drive Tesla's (TSLA) ProspectsBranch Openings, Lower Rates Aid BofA (BAC), Fee Income AilsInternational Commerce & Cloud Businesses Aid Alibaba (BABA)Featured ReportsNextEra (NEE) Gains from Renewable Focus, Steady InvestmentPer the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.ConocoPhillips' (COP) Prime Untapped Drilling Locations AidPer the Zacks analyst, ConocoPhillips' extensive untapped shale assets and strategic LNG investments promise growth. Yet significant reliance on crude and rising operational costs pose a concern.Expansion Actions to Drive Southern Copper (SCCO), Costs AilThe Zacks analyst believes Southern Copper is poised well to gain from its industry-leading copper reserves and expansion actions. However, higher labor costs will hurt margins.Investment on Infrastructure & Clean Assets Aid Dominion (D)Per the Zacks analyst, Dominion's investment of $43 billion in 2025-2029 period to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.Discover Financial (DFS) Rides on Loan Growth, High Costs AilPer the Zacks Analyst, loan growth and net interest income margin expansion are aiding Discover Financial's top line. However, high operating expenses are concerning.Focus on Innovations Drives GE HealthCare's (GEHC) GrowthPer the Zacks Analyst, GE HealthCare continues to witness growth on the backs of innovations and its presence in growing markets. However, macroeconomic concerns prevail.United Therapeutics' (UTHR) PAH Portfolio Drives GrowthThe Zacks Analyst believes that demand for United Therapeutics' PAH medicines is strong. Potential approvals for expanded use of Orenitram and Tyvaso and its pipeline can drive long-term growthNew UpgradesSprouts Farmers' (SFM) Omnichannel Offering to Propel SalesPer the Zacks analyst, Sprouts Farmers' assortment of better-for-you products, focus on providing hassle-free shopping through omnichannel offering & a network of fresh distribution centers bode well.Under Armour (UAA) Gains on Strategic Brand TransformationPer the Zacks analyst, Under Armour is progressing in its multi-year transformation to strengthen its brand through deeper customer engagement, effective innovations and disciplined market strategy.CMY Solutions Buyout and Efficient Workforce Aid ICF (ICFI)Per the Zacks analyst, the acquisition of CMY Solutions improves ICF International's offerings in power and energy advisory services. Efficient Workforce boost profitability. New DowngradesLandstar (LSTR) Continues to Grapple With Weak Freight MarketPer the Zacks analyst, weakness in overall volumes due to headwinds like weak freight demand, supply-chain woes and slower network velocity are hurting the top line.Sluggish Construction Market Hurts Sensata's (ST) ProspectsPer the Zacks analyst, a soft housing construction market affects the Sensing Solutions unit's sales. Loss of market share to local OEMs in the Chinese market is a woe.High Mortgage Rates & Macro Risks Hurt D.R. Horton (DHI)Per the Zacks analyst, D.R. Horton is hurting from a still high mortgage rate scenario reflecting buyers' uncertainty in opting for buying homes. Also, a competitive market condition adds to it.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report NextEra Energy, Inc. (NEE): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Southern Copper Corporation (SCCO): Free Stock Analysis Report Seneca Foods Corp. (SENEA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Nathan's Famous, Inc. (NATH): Get Free ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks