Top Stock Reports for Morgan Stanley, PepsiCo & Comcast

Tuesday, August 5, 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 Morgan Stanley (MS), PepsiCo, Inc. (PEP) and Comcast Corp. (CMCSA), as well as a micro-cap stock Gencor Industries, Inc. (GENC). 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 >>> Pre-markets Slightly Up on Mostly Good Q2 Earnings

Today's Featured Research Reports

Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+56.6% vs. +53.9%). The company’s second-quarter 2025 results reflected a solid trading business. Efforts to focus on wealth and asset management operations, inorganic expansion/strategic alliance and relatively high rates are expected to aid the top line. 

Despite near-term headwinds in the investment banking (IB) business, the company will benefit from a strong pipeline. The Zacks analyst project IB fees and total revenues to grow 3.9% and 3.6%, respectively, in 2025. Operating expenses are likely to stay elevated due to business expansion efforts. We project total non-interest expenses to rise 7% this year.

The ambiguity on the performance of capital markets is a key near-term concern for the company. Though trading revenues are expected to increase going forward, they are less likely to reach the 2021 level anytime soon.

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

Shares of PepsiCo have underperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (-6.4% vs. +5.4%). The company’s PFNA segment remained soft in the second quarter on weak demand and shifting consumer trends. PEP struggled with margin declines, hit by inflation, supply chain costs and tariffs. Foreign currency headwinds and global trade uncertainty are likely to remain persistent drags on PEP’s financial performance.

Nevertheless, PepsiCo’s strong international and North America beverage performance, boosted second-quarter 2025 results. International revenues rose 6%, fueled by growth in both beverages and foods. PBNA posted solid results, led by Pepsi Zero Sugar and innovation in flavor extensions. 

Quaker Foods showed early signs of recovery with innovation and value-pack focus. PepsiCo’s productivity and digital transformation efforts support long-term growth and agility.

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

Comcast’s shares have declined -11% over the year-to-date period against the Zacks Cable Television industry’s decline of -15.7%. The company has been persistently suffering from video-subscriber attrition due to cord-cutting. Broadband prospects are suffering from increased competition from fixed wireless and fiber businesses. 

A leveraged balance sheet is also a major concern for Comcast. Nevertheless, Comcast’s second-quarter results benefited from strong traction in its wireless business, adding 378,000 new lines in the quarter, its best quarter yet. 

Comcast also benefited from its Theme Parks business, driven by the successful opening of Epic Universe in May 2025, and the growing admission rate at its theme parks which drove the segment’s revenues by 18.9% year over year. Peacock’s rapid growth is noteworthy. The addition of NBA coverage in the fall is expected to drive more viewership. 

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

Shares of Gencor Industries have underperformed the Zacks Manufacturing - Thermal Products industry over the year-to-date period (-15.9% vs. -11.6%). This microcap company with a market capitalization of $217.67 million has backlog erosion, margin pressures, tax rate normalization, and unresolved internal control issues, all of which pose risks. The stock offers deep value if execution and order recovery materialize, though earnings quality remains sensitive to non-operating gains.

Nevertheless, Gencor’s resilient backlog of $27.8 million reflects healthy order conversion, supporting near-term revenue visibility. It is well-positioned to benefit from IIJA-driven infrastructure outlays through 2026. Revenue rose 4.4% to $69.6 million in the first half of fiscal 2025, aided by strong equipment sales.

A net cash position of $143.7 million with no debt underpins strategic flexibility. Operating income grew 6.2% despite gross margin compression to 28.8%. Revenue mix and product breadth help mitigate cyclical risk, while record $27.2 million in operating cash flow enhances optionality.

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

Other noteworthy reports we are featuring today include Medtronic plc (MDT), General Motors Co. (GM) and Xylem Inc. (XYL).

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

Rates, IB Business Aid Morgan Stanley (MS), High Costs Ail

PepsiCo's (PEP) Productivity & Digital Efforts to Aid Growth

Domestic Wireless Subscriber Gain Benefits Comcast (CMCSA)

Featured Reports

Medtronic (MDT) Banks on Cardiovascular Sales, FX Woes Worry
The Zacks analyst is impressed with Medtronic's Cardiac Ablation Solutions (CAS) business driving strong growth in its Cardiovascular arm. Yet, currency headwinds continue to weigh on performance.

Robust EV Sales Aid General Motors (GM), Tariff Woes Ail
General Motors' strong 13-model EV lineup is driving sales, but steep tariff-related costs ($4-$5B expected in 2025) are likely to weigh on overall margins, per the Zacks analyst.

Measurement & Control Unit Aids Xylem (XYL), High Costs Ail
Per the Zacks analyst, Xylem is witnessing strength in Measurement & Control Solutions unit, driven by solid demand for advanced metering infrastructure solutions. High operating costs remain a woe.

Systematic Investments Aid DTE Energy (DTE) Amid Poor Solvency
Per the Zacks analyst, DTE Energy makes systematic investments to expand and strengthen its infrastructure. Yet its poor financial ratios indicate weak solvency position.

F5 (FFIV) Rides on Firm Growth in its Software Business
Per the Zacks analyst, F5 is benefiting from strong growth in software, driven by security offerings, such as web application firewall, bot defense and mitigation products.

Jakafi Sales Drives Incyte (INCY) Amid Pipeline Setbacks
Per the Zacks analyst, Incyte's lead drug, Jakafi, maintains momentum on strong underlying demand amid competition. However, the recent pipeline setbacks dent its efforts to expand its portfolio.

Genpact (G) Benefits From Digital SEPs Amid High Talent Cost
Per the Zacks analyst, Digital Smart Enterprise Processes (SEP) enhances the performance of Genpact's clients' business processes using AI. A competitive talent market remains a concern.

New Upgrades

Wolverine's (WWW) Product Initiatives to Boost Market Share
Per the Zacks analyst, Wolverine is actively pursuing a comprehensive strategy to enhance brand portfolio, focusing on Merrell and Saucony brands. These efforts are expected to help gain market share.

CommScope (COMM) Rides on Strong Demand, Strategic Divestiture
Per the Zacks analyst, healthy traction in the cloud and data center market will likely drive CommScope's top line. The divestiture of the CCS segment will significantly improve liquidity.

Solid Comps Growth Aid BJ's Restaurants (BJRI) Performance
Per the Zacks analyst, BJ's Restaurants is benefiting from strong comparable restaurant sales, driven by increased traffic. Also, focus on sales building and margin driving initiatives bodes well.

New Downgrades

Murphy USA (MUSA) Hurt by Lower Fuel Volumes
The Zacks analyst believes that a prolonged decline in fuel volumes could undermine Murphy USA's throughput and weigh on top-line performance.

Teladoc (TDOC) Gains From Buyouts, BetterHelp Unit Performance Hurts
Per the Zacks analyst, Teladoc's strategic acquisitions are enhancing distribution capabilities and service offerings. However, weak performance from BetterHelp business remain a concern.

Housing Softness & High Costs Ail Builders FirstSource (BLDR)
Per the Zacks analyst, Builders FirstSource's growth is being hurt by the ongoing housing market softness and the macro challenges. Also, increased costs and expenses are pressuring on its margins.

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

Zacks Investment Research