Top Analyst Reports for Cisco, Caterpillar & Charles Schwab

Thursday, July 24, 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 Cisco Systems, Inc. (CSCO), Caterpillar Inc. (CAT) and The Charles Schwab Corp. (SCHW), as well as a micro-cap stock Elite Pharmaceuticals, Inc. (ELTP). 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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You can read today's AWS here >>> Morning Headlines Defy Expectations, but Pre-Markets Sell

Today's Featured Research Reports

Cisco’s shares have outperformed the Zacks Computer - Networking industry over the year-to-date period (+18.2% vs. +17.7%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Increase in recurring revenue base bodes well for investors. Splunk acquisition enhances its recurring revenue base. 

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio. 

However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition.

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

Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the year-to-date period (+19% vs. +18.7%). The company’s Energy and Transportation segment has shown improved volume and margin performance in the past few quarters, helping offset weaker results in the Resource Industries and Construction Industries segments. This will continue through the rest of 2025, which, along with a solid first quarter 2025-end backlog of $35 billion, should support its top line. 

However, higher labor costs and the uncertainty regarding tariffs are concerning. Going forward, the Construction Industries segment will gain from increased construction activities in the United States and globally. Resource Industries will be supported by commodity demand. 

The Energy & Transportation segment will gain on strong demand across all applications. Caterpillar’s focus on aftermarket parts and service-related revenues (which generate high margins) will aid growth. 

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

Charles Schwab’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+16.2% vs. +12.2%). The company’s second-quarter 2025 results were aided by higher net interest revenues (NIR). Relatively higher interest rates and an increased focus on repaying high-cost bank supplemental funding balances will likely support net interest margin (NIM) expansion in the quarters ahead. 

Strategic acquisitions and favorable market conditions are likely to aid client assets growth in the near term. However, operating expenses are likely to remain elevated in light of continued investments in marketing and advertising alongside compensation costs. 

Subdued trading revenue growth is worrisome because of the volatile nature of the capital markets amid macro uncertainties. Nonetheless, a solid balance sheet and liquidity position will likely enable sustainable capital distributions for the company.

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

Shares of Elite Pharmaceuticals have outperformed the Zacks Medical - Drugs industry over the past six months (+17% vs. +2.1%). This microcap company with a market capitalization of $588.87 million is capitalizing on a large, under-penetrated ADHD market via its December 2024 launch of Lisdexamfetamine (Vyvanse generic), gaining 8–10% market share in a $3.5 billion segment with further upside as quota and coverage ease. 

Its shift to direct sales drove fiscal 2025 revenues up 48.4% to $84 million and operating income up 81.7% to $19.6 million, enhancing margins and cash flow. ELTP maintains leading shares in Adderall IR/ER generics and is expanding via complex formulations and new launches. 

Yet risks include pricing pressure from Vyvanse generics, customer concentration, rising inventory, revenue dependence on Vyvanse and offshore competition. Derivative liabilities and legal overhang on OxyContin also cloud earnings visibility. ELTP’s valuation reflects growth optimism, but also heightens execution risk.

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

Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI), Barrick Mining Corp. (B) and GE HealthCare Technologies Inc. (GEHC).

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

Strong Subscriptions and AI Security Boost Aid Cisco (CSCO)

Strong Backlog to Support Caterpillar (CAT) Amid High Costs

Client Assets & Higher Rates to Aid Charles Schwab (SCHW)

Featured Reports

Kinder Morgan (KMI) to Bank on $9B Worth of Project Backlog
Kinder Morgan's huge project backlog, half of which supports power needs, is supported by long-term contracts. However, significant debt burden concerns the Zacks analyst.

GE HealthCare (GEHC) To Face Tariff challenges in 2025
Per the Zacks analyst, GE HealthCare faces potential challenges in 2025 due to newly implemented U.S. tariffs on Chinese imports, which are expected to impact its cost structure and profitability.

eSignature Strength Boost Docusign (DOCU) Amid Low Liquidity
The Zacks analyst is positive about DocuSign's top line as it is significantly benefiting from continued customer demand for eSignature. Declining liquidity is concerning.

Moderna's (MRNA) New Launches to Cut COVID Sales Dependency
With COVID vaccine sales declining, Moderna (MRNA) is accelerating development of its non-COVID pipeline. The Zacks Analyst is encouraged by the potential product launches over the next five years.

Sensata (ST) Gains from Robust Sensing Solutions Segment
Per the Zacks analyst, Sensata is gaining from its Sensing Solutions unit, driven by stable industrial and aerospace demand, along with rising adoption of its A2L gas leak detection sensing products.

NMI Holdings (NMIH) Banks on Solid Mortgage Insurance Market
Per the Zacks analyst, NMI Holdings gains from mortgage insurance market riding on well performing primary insurance-in-force, which drives new insurance written. However, escalating expense ails.

Strategic Efforts Aid Leggett & Platt (LEG), Macro Woes Ail
Per the Zacks analyst, Leggett & Platt benefits from restructuring plan and strategic initiatives. However, weak residential end markets demand due to a challenging macro environment are concerns.

New Upgrades

Growth Projects, Higher Prices to Drive Barrick Mining (B)
Per the Zacks analyst, Barrick will benefit from progress in key growth projects that are expected to boost production. Higher realized gold prices should also translate into strong profit margins.n

Strong Demand for Cloud Aids Pegasystems (PEGA) Prospects
Per the Zacks analyst, Pegasystems is benefiting from strong revenues driven by robust demand for its AI-powered and cloud-based solutions.

Rising Loan & Deposit Balances Aid Texas Capital (TCBI)
Per the Zacks analyst, rising loans and deposits balances support Texas Capital's growth. Also, its decent liquidity position makes share repurchases sustainable.

New Downgrades

Wildfire Risks and Poor Solvency Hurt Sempra Energy (SRE)
Per the Zacks analyst, Sempra Energy's poor financial ratios signal weak solvency, while wildfire risks in its service area lead to frequent damages and outages.

Lower Volumes are a Concern for Flowers Foods' (FLO) Top Line
Per the Zacks analyst, soft volumes are a concern for Flowers Foods. In Q1 2025, total sales fell 1.4% as volume declined 2.7%, amid heightened promotions and weak demand in key categories.

Grocery Outlet (GO) Faces Sluggish Sales & Margin Pressures
Per the Zacks analyst, Grocery Outlet's weak 0.3% comp growth and lower basket size signal soft demand, while rising costs continue to pressure margins and dim near-term prospects.

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

Zacks Investment Research