Thursday, February 27, 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 Amazon.com, Inc. (AMZN), Eli Lilly and Co. (LLY) and S&P Global Inc. (SPGI), as well as micro-cap stock CVD Equipment Corp. (CVV). 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
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You can read today's AWS here >>> Big Morning for Economic Data: Jobless Claims, GDP & More
Today's Featured Research Reports
Shares of Amazon.com have gained +31.7% over the past year against the Zacks Internet - Commerce industry’s gain of +35.6%. The company’s fourth-quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and expanding content portfolio were beneficial.
Strengthening relationships with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on generative AI is a major plus.
However, Amazon announced disappointing guidance for the first quarter. Management cited foreign exchange headwinds and the absence of an extra Leap Year Day as factors likely to impact growth in the current quarter.
(You can read the full research report on Amazon.com here >>>)
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+12.1% vs. +1.3%). The company’s Q4 earnings beat estimates while sales missed the same. Demand for popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers.
In the past two years, Lilly received approvals for some new drugs like Kisunla, Omvoh and Jaypirca. Its new drugs contributed significantly to its top-line growth in 2024. It is also making rapid pipeline progress in areas like obesity, diabetes and Alzheimer’s.
However, sales of Mounjaro/Zepbound were disappointing in the second half of 2024 due to slower-than-expected growth, which has raised concerns about moderating demand for the drugs. Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 diabetes/obesity market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of S&P Global have outperformed the Zacks Business - Information Services industry over the past year (+24.6% vs. +18%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop products.
The latest service launches have been aiding the company's growth and enhancing its market reach. The stock is appealing for the dividend-seeking investors. Share buybacks boost investors' confidence and positively impact earnings per share.
On the flip side, growth initiatives, higher compensations and incentives raise the company's expenses. A highly competitive environment strains the company's market share. Declining liquidity position due to reduction in cash troubles the company. The stock has gained 23.3% in a year and we have a Neutral recommendation on it in anticipation of a correction.
(You can read the full research report on S&P Global here >>>)
CVD Equipment’s shares have underperformed the Zacks Manufacturing - General Industrial industry over the past year (-37.3% vs. +3.1%). This microcap company with market capitalization of $21.2 million faces challenges from silicon carbide (SiC) market overcapacity, fluctuating revenues and declining liquidity, as cash fell to $10 million in third-quarter 2024. The volatile semiconductor sector pressures margins, with a $1 million inventory write-down on PVT150 systems.
Despite setbacks, it reported a 31.4% year-over-year third-quarter revenue growth to $8.2 million, driven by demand in aerospace, defense and high-power electronics. Innovations like the PVT200 for 200mm SiC wafers and PowderCoat systems for EV materials position CVD Equipment for growth in high-demand markets.
Its shift to a make-to-order model enhances scalability, aligning with industry tailwinds in semiconductors, EVs and energy storage. Despite competition and geopolitical risks, R&D investments target growth in EV, aerospace and high-power electronics.
(You can read the full research report on CVD Equipment here >>>)
Other noteworthy reports we are featuring today include Stryker Corp. (SYK), The Southern Co. (SO) and Infosys Ltd. (INFY).
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
Prime Momentum & Growing AWS Adoption Benefit Amazon (AMZN)
Lilly's (LLY) Mounjaro, Zepbound Key to Sales Growth
ProntoNLP Buyout Aids S&P Global (SPGI) Amid Rising Costs
Featured Reports
Diversified Product Portfolio Drives Stryker's (SYK) Prospects
Per the Zacks analyst, Stryker's diversified product portfolio, which include the robust Mako total knee platform, should support the growth of its global business.
Southern (SO) Set to Benefit from Rising Data Center Demand
The Zacks analyst believes that Southern Company's commitment to data center contracts positions it for significant revenue growth, though high debt levels may limit some financial flexibility.
Digital Transformation, AI Proliferation Aid Infosys (INFY)
Per the Zacks analyst, Infosys is benefiting from large deal wins and higher investments by clients in digital transformation, artificial intelligence and automation.
Robust SaaS Portfolio, Mask Sales Aid ResMed (RMD)
The Zacks Analyst is impressed with ResMed's Software-as-a-Service arm gaining from the MEDIFOX DAN brand, as well as the Brightree portfolio. Mask Sales grow on new launches like AirFit F40.
Cenovus Energy (CVE) Poised for Growth on Higher Output
Per the Zacks analyst, Cenovus strengthens its position with rising oil sands output and improved refining margins. Yet, costly maintenance and cash flow strains may weigh on near-term profitability.
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.
Badger Meter (BMI) Gains from Buyouts Amid Rising Expenses
Per the Zacks analyst, BMI benefits from synergies from recent acquisitions. However, rising expenses remain a concern.
New Upgrades
Restructuring & Strategic Acquisitions to Aid Barclays (BCS)
Per the Zacks analyst, Barclays' restructuring efforts to boost efficiency, Tesco's retail banking operation buyout, divestitures, and solid balance sheet will aid its financials.
Tyson Foods (TSN) Gains From Solid Chicken Unit Performance
Per the Zacks analyst, Tyson Foods is benefiting from its solid Chicken segment, fueled by operational improvements. Management raised its Chicken unit adjusted operating income view for fiscal 2025.
Expanding Paying User Base Aids Dropbox's (DBX) Prospects
Per the Zacks analyst, Dropbox is benefiting from an expanding user base and strong average revenue per paying user growth.
New Downgrades
Reduced Demand in Power Products & High Debt Ail Honda (HMC)
Per the Zacks analyst, Honda's Power Products sales are projected to decline in fiscal 2025 due to reduced demand across most markets. Rising debt levels are also concerning.
Rising Expenses, High Debt Weigh Drag Willis Towers (WTW)
Per the Zacks analyst, Willis Towers' rising expenses driven by operating expenses weigh on margin expansion while high debt with deteriorating times interest earned remains a concern.
High Mortgage Rate & Increased Costs Hurt NVR's Prospects
Per the Zacks analyst, NVR's prospects are hurting from high mortgage rates and lingering inflation, reflecting declined new home orders. Also, higher building materials and labor costs are concerns.
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.
Today, See These 5 Potential Home Runs >>Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Southern Company (The) (SO) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Stryker Corporation (SYK) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
CVD Equipment Corporation (CVV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
