The Zacks Analyst Blog Highlights Merck, Palo Alto Networks, Freeport-McMoRan and Espey

For Immediate Release

Chicago, IL – August 15, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck & Co., Inc. MRK, Palo Alto Networks, Inc. PANW, Freeport-McMoRan Inc. FCX and Espey Mfg. & Electronics Corp. ESP.

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for Merck, Palo Alto and Freeport

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Merck & Co., Inc., Palo Alto Networks, Inc. and Freeport-McMoRan Inc., as well as a micro-cap stock Espey Mfg. & Electronics Corp.. 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 >>> Economic Data at 3-Year Highs: PPI, Jobless Claims

Today's Featured Research Reports

Shares of Merck have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-15.7% vs. -4.2%). Rising competitive and generic pressure on some drugs and persistent challenges for Gardasil in China remain overhangs for the company. There are concerns about Merck's ability to successfully navigate the Keytruda loss of exclusivity and potential competition for the drug.

Nevertheless, Merck's second-quarter earnings beat estimates while sales met. Its blockbuster drug, Keytruda, and new products have been driving sales. With label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth.

Animal health is also contributing to growth. Merck has been making meaningful pipeline progress. It is also actively pursuing M&A deals to enhance its pipeline and diversify away from Keytruda.

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

Palo Alto's shares have gained +2.6% over the past year against the Zacks Security industry's gain of +21%. The company has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, which are attributable to the rise of the hybrid work trend and the heightened need for stronger security.

PANW's strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.

However, softening IT spending amid macroeconomic headwinds may hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.

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

Shares of Freeport have outperformed the Zacks Mining - Non Ferrous industry over the year-to-date period (+11% vs. +6.8%). The company's adjusted earnings and sales for the second quarter beat the respective Zacks Consensus Estimate. Freeport is conducting exploration activities near existing mines to expand reserves. It is expected to gain from progress in exploration activities that will boost production capacity.

Freeport is executing several smelter projects in Indonesia. It is also well-positioned to benefit from automotive electrification, which is positive for copper, as electric vehicles are copper-intensive. The company's efforts to reduce debt are also encouraging.

However, weak copper volumes may also hurt its performance. Sizable capital spending is also likely to impact free cash flow generation. Copper prices also remain volatile amid trade uncertainties.

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

Espey Mfg. & Electronics' shares have outperformed the Zacks Electronics - Military industry over the year-to-date period (+59.6% vs. -20.7%). This microcap company with a market capitalization of $134.46 million posted strong YTD FY25 results, with revenue up 26.7% to $34.4 million, driven by defense power supply programs and improved gross margins. Its record $138 million backlog — anchored by long-term contracts and key customer relationships — provides multi-year revenue visibility, with nearly half scheduled beyond FY26.

Strategic wins include $49.3 million in multi-year contracts for the U.S. Navy's Columbia-class submarines, supporting long-term positioning in electrification systems. A debt-free balance sheet, $28.3 million in liquidity, and $10.8 million in federal funding for capacity upgrades enhance strategic flexibility and throughput.

Espey benefits from defense modernization tailwinds, especially in naval and airborne electrification. However, risks include persistent margin headwinds from early-stage programs, fixed cost pressures, and high customer concentration.

(You can read the full research report on Espey Mfg. & Electronics here >>>)

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