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Thursday, August 21, 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 Alphabet Inc. (GOOGL), Exxon Mobil Corp. (XOM) and AbbVie Inc. (ABBV). 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 >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Jobless Claims Up, Philly Fed Down, Walmart Q2 Mixed
Today's Featured Research Reports
Shares of Alphabet have gained +5.5% over the year-to-date period against the Zacks Internet - Services industry’s gain of +6.9%. The company is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. Google Cloud’s annual revenue run rate is now more than $50 billion.
GOOGL is advancing visual and contextual search capabilities. The Circle to Search feature is now active on more than 300 million devices. AI Overviews now reach more than 2 billion users per month and are available in over 200 countries across 40 languages. It is now driving over 10% more queries globally.
Google Cloud is benefiting from its partnership with the likes of NVIDIA and PayPal. Google Cloud’s expanding clientele is expected to boost GOOGL’s top line. However, increasing litigation issues and intensifying competition in cloud computing are concerns.
(You can read the full research report on Alphabet here >>>)
Exxon Mobil’s shares have gained +3.7% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry’s gain of +6.7%. The company is advancing key oil projects in the Permian Basin and offshore Guyana, boosting production and efficiency. Its recent merger with Pioneer enhances its U.S. operations, while Guyana remains a major growth driver.
Exxon Mobil is also expanding into cleaner energy, with a major low-carbon hydrogen and ammonia plant in Texas and progress in advanced plastic recycling. The company’s low debt exposure positions it to navigate different commodity cycles with ease. The company reported better-than-expected second-quarter earnings fueled by higher liquid production from the United States and stronger industry refining margins.
However, the Chemicals Division remains a weak spot, with global oversupply leading to margin compression. Moreover, ongoing tariff tensions are weighing on the energy giant’s already oversupplied chemicals business.
(You can read the full research report on Exxon Mobil here >>>)
Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+21% vs. +0.2%). The company beats second-quarter estimates for both earnings and sales. AbbVie has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications.
These should support top-line growth in the next few years. AbbVie is returning to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE. It has been on an acquisition spree in the past couple of years to bolster its early-stage pipeline that should drive long-term growth.
However, the company faces several near-term headwinds like Humira LOE impact, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise.
(You can read the full research report on AbbVie here >>>)
Other noteworthy reports we are featuring today include Constellation Energy Corp. (CEG), Quanta Services, Inc. (PWR) and Markel Group Inc. (MKL).
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
Alphabet (GOOGL) Benefits From Cloud & Search Initiatives
ExxonMobil's (XOM) Starbroek & Permian Basin Presence Aids
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Featured Reports
Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output
Infrastructure Solution Demand Aids Quanta (PWR), Delays Hurt
Per the Zacks analyst, more demand for infrastructure solutions, aiding energy-transition efforts and modernization, will drive growth for Quanta. Yet, project delays and competition are risks.
Markel (MKL) Banks on Acquisitions Amid Escalating Costs
Per the Zacks Analyst, strategic buyouts have aided the company to expand its reinsurance product offerings and boost its surety capabilities. However, high costs remain a concern.
Tapestry's (TPR) Strong Digital Endeavors to Boost Sales
Per the Zacks analyst, Tapestry has been directing resources toward expanding digital and data analytics capabilities. During the fourth quarter, digital revenues increased in mid-teens digits.
Penumbra (PEN) Expands Global Reach, Delivers Solid Growth
According to Zacks analyst, Penumbra's expanding CAVT footprint, RED catheter adoption in Europe, and easing China headwinds position the company for stronger international performance.
International Operations Aid FTI Consulting (FCN), Cost High
Per the Zacks analyst, FTI Consulting's strong international operations make it an excellent partner for global clients, generating continued revenue growth. Rising investment costs is a concern.
Rising Healthcare Expenses to Aid Medical Properties (MPW)
Per the Zacks Analyst, Medical Properties is poised to gain from rising healthcare spending propelled by an aging population. However, substantial debt burden and potential tenant bankruptcies ail.
New Upgrades
Jabil (JBL) Rides on Healthy Demand in Multiple Verticals
Per the Zacks analyst, solid traction in the AI data center infrastructure, capital equipment and warehouse automation markets will likely drive Jabil's top line.
Product Launches & VOXX Acquisition to Aid Gentex (GNTX)
Per the Zacks analyst, sales of Gentex's Full Display Mirror units are expected to rise significantly in 2025, driven by product launches. The acquisition of VOXX is expected to boost revenue growth.
Solid Asset Management Business Supports Main Street (MAIN)
Per the Zacks analyst, Main Street's solid asset management business performance driven by cost efficiency, alongside solid performance of funds will keep aiding its financials.
New Downgrades
Summit's (SMMT) Lack of Pipeline Diversification A Woe
While Summit's progress with its experimental cancer drug is encouraging, the lack of pipeline diversification beyond this drug concerns the Zacks Analyst.
Weak Demand & Margin Pressures Ail International Paper (IP)
The Zacks analyst is concerned that weak demand in end markets, along with higher maintenance outage expense and elevated interest expense will continue to impact International Paper's results.
Avnet (AVT) Hurt by Declining Demand, High Inventory Levels
Per the Zacks analyst, softened demand in a tight IT spending environment, along with high inventory levels at customers, is likely to hurt Avnet's financial performance in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
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