Top Stock Reports for Costco, HSBC & Booking Holdings

Thursday, July 31, 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 Costco Wholesale Corp. (COST), HSBC Holdings plc (HSBC) and Booking Holdings Inc. (BKNG), as well as a micro-cap stock Smith-Midland Corp. (SMID). 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 >>> Economy Heating Up on PCE for June

Today's Featured Research Reports

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+13.9% vs. +7.9%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers. 

The Zacks analyst expects Costco to register an 11.4% adjusted earnings per share improvement in fiscal 2025 on 7.8% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates. 

A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Shares of HSBC have outperformed the Zacks Banks - Foreign industry over the past year (+54% vs. +37.7%). The company’s performance is reflecting the success of its Asia pivot strategy. While its second-quarter 2025 results were hurt by higher credit-related charges, business simplification and restructuring initiatives are expected to fuel long-term growth. 

As part of its focus on optimizing returns, the bank is divesting operations in underperforming regions and has exited retail banking in multiple markets. Though these moves position it for improved efficiency, they are temporarily weighing on revenues. This, along with muted loan demand, presents a near-term concern. 

Higher expenses tied to efforts to expand market share remain a headwind. However, a robust capital position, relatively higher interest rates and expansive global footprint will continue to support its financials.

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

Booking Holdings’ shares have outperformed the Zacks Internet - Commerce industry over the past year (+54.4% vs. +29.1%). The company is capitalizing on resilient global leisure travel demand, driven by strong execution of its Connected Trip strategy, accelerating growth in flights and alternative accommodations, enhanced Genius loyalty program, disciplined cost management, and growing presence in Asia. 

In the second quarter of 2025, room nights grew 8% year over year to 309 million, led by solid performance in Europe and Asia, while airline ticket bookings jumped 44%, driven by Booking.com and Agoda. Adjusted EBITDA rose 28% to $2.4 billion with improved margins, and the bottom line increased 32%. 

Reflecting this momentum, the company raised its full-year outlook, citing strong demand and execution. However, rising marketing expenses, up 10.3% year over year, and increasing cloud and personnel costs may weigh on future profitability. 

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

Shares of Smith-Midland have outperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (+4.4% vs. +2.6%). This microcap company with a market capitalization of $186.93 million is driving high-margin, recurring revenue, with Q1 2025 rental income up nearly 9x year over year and gross margin expanding to 30.7%. 

Strong growth in proprietary soundwall and building systems supports diversification and scale. Its asset-light licensing model continues to expand, contributing to resilient margins. Operating leverage is accelerating earnings, with net income tripling amid cost discipline. A fortified balance sheet, improved liquidity, and disciplined working capital management enhance financial flexibility. 

Planned capacity upgrades position the company to meet infrastructure demand. Risks include customer concentration, a shrinking backlog, reliance on one-off high-margin projects, internal control weaknesses, and rising working capital. Declines in core product sales and inflation also threaten margin stability.

(You can read the full research report on Smith-Midland here >>>)

Other noteworthy reports we are featuring today include The Travelers Companies, Inc. (TRV), Ryanair Holdings plc (RYAAY) and Arch Capital Group Ltd. (ACGL).

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

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

Asia Pivot, Business Simplification, Rates Aid HSBC (HSBC)

Booking Holdings Benefits From Strong Leisure Travel Demand

Featured Reports

Strong Renewal Rate Change, Retention Aid Travelers (TRV)
Per the Zacks analyst, Travelers is set to gain from continued strong renewal rate change and retention and increase in new business. Yet, exposure to cat loss inducing underwriting volatility ails.

Rosy Air Travel Demand Aids Ryanair (RYAAY), High Costs Ail
The Zacks analyst is pleased with the high passenger revenues, owing to upbeat air travel demand. High operating costs are, however, concerning.

Arch Capital (ACGL) Poised to Grow on Solid Premium Growth
Per the Zacks analyst, Arch Capital is set to grow on solid Insurance and Reinsurance business driving improvement in premiums. However, exposure to cat loss inducing underwriting volatility concerns.

New Product Launches Aid Textron (TXT) Amid Labor Shortage
Per the Zacks analyst, Textron is innovating products to capture more shares in the diverse markets it serves. Yet labor shortage result in delays and likely impact operating results.

Cologuard Growth Aids Exact Sciences (EXAS), Cost Woes Stay
The Zacks analyst is impressed with Exact Sciences' Cologuard test momentum, led by rescreens, care gap programs and growth in new ordering providers. Yet, growing costs bring profitability risks.

Omnichannel Initiatives Aid CarMax (KMX), High Debt Ails
Per the Zacks analyst, CarMax's continued focus on omnichannel initiatives is set to fuel its long-term efficiencies. However, a high long-term debt-to-capital ratio remains a concern.

BCE Gains from Synergies via Acquisitions & Collaborations
Per the Zacks analyst, synergies from acquisitions and collaborations are boosting performance by expanding BCE's product portfolio, market reach, customer base, and strategic opportunities.

New Upgrades

Robust Acquisitions & Innovation Aid Armstrong World (AWI)
Per the Zacks analyst, Armstrong World is gaining from its accretive buyouts, Templok product's market trends and focus on rewarding its shareholders. Also, the Kanopi platform adds to the growth.

Dillard's (DDS) Gains on E-Commerce Growth and Store Upgrade
Per the Zacks analyst, Dillard's is gaining from store upgrades, stronger brands, and a growing online business, positioning it for long-term growth through productivity and omni-channel focus.

Digital Upgrades to Power Bath & Body Works' (BBWI) Growth
Per the Zacks analyst, Bath & Body Works plans app upgrades and a major platform overhaul after a 29% digital demand surge in Q1, aiming to boost online sales and reinforce its omnichannel presence.

New Downgrades

Nabors (NBR) Faces Persistent Drilling Challenges in Lower 48
The Zacks analyst believes that Nabors' U.S. drilling operations will continue to face challenges due to sluggish oil-focused basin activity, putting pressure on margins and profitability.

Whirlpool (WHR) Struggles as Global Appliance Demand Weakens
Per the Zacks analyst, soft global demand, inflation, and tariffs have been weighing on Whirlpool's performance. Weak sales in North America, Latin America, and Asia reflect broad consumer caution.

Order Timing Uncertainty Pressures Super Micro (SMCI)
Per the Zacks Analyst, delays in customer orders tied to upcoming AI platform launches are driving revenue volatility and limiting Super Micro's near-term performance clarity.

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

Zacks Investment Research