Top Analyst Reports for Microsoft, Alibaba & Merck

Friday, July 11, 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 Microsoft Corp. (MSFT), Alibaba Group Holding Ltd. (BABA) and Merck & Co., Inc. (MRK), as well as two micro-cap stocks The Monarch Cement Co. (MCEM) and Team, Inc. (TISI). 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 >>>

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Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+19.4% vs. +17.6%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Office 365 Commercial demand has been propeling Productivity and Business Processes revenue growth notably. 

ARPU increases through E5 and M365 Copilot uptake across key segments. Intelligent Cloud revenues advance through Azure AI development and AI Copilot business growth. Strategic execution has been enhancing non-AI services through enterprise customer growth and operational scale improvements. Xbox content and services benefit from robust performance across third-party and first-party content offerings. 

The Zacks analyst expects that fiscal 2025 net sales will increase 13.7% compared to fiscal 2024. However, elevated operating expenses and Azure investments amid intensifying cloud competition remain concerns for the stakeholders.

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

Shares of Alibaba have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+26.7% vs. +7%). 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 >>>)

Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-14.5% vs. +2.7%). The company is facing rising competitive pressure on the diabetes franchise and persistent challenges for Gardasil in China remain overhangs. There are concerns about Merck’s ability to successfully navigate the Keytruda loss of exclusivity period and potential competition for the drug. 

Estimates have declined slightly ahead of Q2 results. Merck has a positive record of earnings surprises in recent quarters. Nevertheless, Merck’s blockbuster drug, Keytruda, and new products have been driving sales. 

With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth. Animal health is also contributing to growth. Merck boasts a strong cancer pipeline and is investing in M&A activity to strengthen its non-cancer pipeline. 

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

Shares of Monarch Cement have outperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (+25.4% vs. +4.9%). This microcap company with a market capitalization of $874.95 million offers a compelling investment case, driven by pricing power and financial strength. Despite first-quarter 2025 volume declines, pricing gains and cost control helped preserve margins, with gross profit rising to 30.2%. 

The firm’s dividend remains secure, backed by $50.7 million in cash, no debt and strong investment income. Retained earnings grew to $371.2 million, funding a $40.1 million capex plan without leverage. A debt-free balance sheet, $14.6 million in short-term investments and wide geographic diversification support resilience. The Humboldt plant secures raw material supply for more than 50 years, while strategic JVs enhance capital efficiency. 

Improved cash flow from investing and a strong brand in core markets reinforce long-term value and margin stability. MCEM’s strong balance sheet, brand strength and strategic flexibility support continued value creation and financial resilience.

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

Team's shares have outperformed the Zacks Building Products - Maintenance Service industry over the past year (+115% vs. +17.9%). This microcap company with a market capitalization of $82.14 million offers a compelling investment case, driven by strong demand for critical infrastructure services, underpinned by aging assets and regulatory mandates. 

Team’s integrated inspection, testing, and repair model supports recurring and emergency revenue streams. In first-quarter 2025, midstream revenue rose 15% year over year, and the IHT segment grew 6.8% year over year, boosting adjusted EBITDA by 39%. Strategic cost actions aim for $10M in annual savings, adding to a prior $25 million program. Canadian turnaround efforts and management’s 10%+ EBITDA margin goal reinforce long-term upside. 

However, risks remain: high debt ($353.6 million), ongoing net losses, MS segment underperformance, revenue volatility from seasonality, and weak liquidity ($29.1 million). Execution on cost discipline and MS recovery is critical to realizing margin targets and valuation re-rating.

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

Other noteworthy reports we are featuring today include Interactive Brokers Group, Inc. (IBKR), Marathon Petroleum Corp. (MPC) and BCE Inc. (BCE).

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

Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)

Alibaba (BABA) Gains From International Commerce Businesses

Keytruda Drives Merck (MRK) Sales Amid Gardasil China Issues

Featured Reports

Marathon (MPC) to Gain from 100% ownership of BANGL Pipeline
The Zacks analyst believes that Marathon Petroleum's 100% ownership in BANGL Pipeline has strengthened its market reach, but declining refining margins impacts profitability.

BCE Thrives on Bell Media's Strength Amid Macro Turbulences
Per the Zacks analyst, shifting geopolitical and macro conditions, along with pricing and regulatory pressures, are hurting BCE's performance. However, Bell Media is emerging as a bright spot.

Strategic Acquisitions Aid Centene (CNC), High Costs Hurt
Per the Zacks analyst, strategic buyouts are expanding Centene's markets and membership. However, elevated expenses remain a concern.

Branch Expansion, NII Growth Aid Cullen/Frost (CFR)
Per the Zacks analyst, Cullen/Frost's expansion across Texas is driving loan and deposit growth. Also, rising net interest income (NII) will aid its top line growth.

Capacity Expansion, Cost Reduction Aid Albemarle (ALB)
While Albemarle faces headwinds from softer lithium market pricing, it should gain from efforts to boost its global lithium derivative capacity and cost-saving actions, per the Zacks analyst.

Diversified Portfolio Aids Group 1 (GPI) Amid High Debt
Per the Zacks analyst, Group 1's diversified portfolio positions it well for top and bottom-line growth. However, a high debt level remains a concern.

Global Reach Aids Inspire Medical (INSP) Amid Rising Expenses
The Zacks analyst is upbeat about Inspire Medical's focus on expanding the size and geographic scope of direct sales organization despite its escalating operating expenses.

New Upgrades

Technology, Product Expansion Aid Interactive Brokers (IBKR)
Per the Zacks analyst, proprietary software development efforts, expanding global footprint, relatively higher rates, and product diversification moves will likely aid interactive Brokers' financials.

Solid Telecommunications Business Growth Aid Dycom (DY)
Per the Zacks analyst, Dycom is befitting from strong growth in the telecom business and continuous contract flow. Also, the focus on strategic acquisitions bode well.

Solid Comps Run to Fuel Urban Outfitters' (URBN) Top Line
Per the Zacks analyst, Urban Outfitters' commitment to improving comps, supported by product expansion and effective marketing, bodes well. Comps in retail segment rose 4.8% during Q1 fiscal 2026.

New Downgrades

Strict Rules, Extreme Weather Ail Plains All American (PAA)
Per the Zacks analyst, Plains All American's operating expenses might increase in meeting stringent regulations and implementing safety measures. Extreme weather conditions might affect operations.

Rising Competition & Declining RPE Hurt Robert Half (RHI)
Per the Zacks analyst, heightened competition makes it difficult for Robert Half to balance growth and profitability. Declining revenues per employee (RPE) is a red flag for investors.

Escalated SG&A Costs Hurt Columbia Sportswear's (COLM) Profits
Per the Zacks analyst, Columbia Sportswear is seeing higher SG&A costs. In the first quarter of 2025, the company's SG&A expenses were up 1.5% to $354.5 million.

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

Zacks Investment Research