Top Research Reports for Alphabet, IBM & Merck

Tuesday, September 16, 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), IBM Corp. (IBM) and Merck & Co., Inc. (MRK), as well as two micro-cap stocks SandRidge Energy, Inc. (SD) and NeurAxis, Inc. (NRXS). 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 >>> Retail Sales, Imports & Exports Warmer Ahead of Fed Meeting 

Today's Featured Research Reports

Alphabet’s shares have outperformed the Zacks Internet - Services industry over the year-to-date period (+33% vs. +32.6%). The company’s 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 reach more than 2 billion users per month and are available in above 200 countries across 40 languages. It is now driving above 10% more queries globally. 

On the litigation front, per the latest ruling in the ongoing lawsuit between GOOGL and the DOJ, the former is now required to share Search data with rivals, but need not divest Chrome and Android, providing a much-needed relief. However, stiff competition in cloud computing has been concerning.

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

Shares of IBM have gained +19% over the year-to-date period against the Zacks Computer - Integrated Systems industry’s gain of +39%. The company is betting big on the Watsonx platform, which is likely to be the core technology platform for its AI capabilities. The company is witnessing healthy demand trends for hybrid cloud and AI solutions with a client-focused portfolio and broad-based growth. 

The acquisition of Hakkoda has strengthened its data expertise and augmented its capability to support clients’ AI transformation initiatives. IBM is collaborating with SAP to tap generative AI technology within the retail industry to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms. 

However, declining net sales in the Consulting segment, owing to soft demand in some end markets, are straining margins. Macroeconomic headwinds are worrisome. IBM’s acquisition spree has also escalated integration risks.

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

Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-16.1% vs. +1.4%). The company’s rising competitive and generic pressure on some drugs and persistent challenges for Gardasil in China remain overhangs. There are concerns about Merck’s ability to successfully navigate the Keytruda loss of exclusivity period and potential competition for the drug.

Nevertheless, Merck’s 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 across areas like oncology, vaccines and infectious diseases. 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 >>>)

Shares of SandRidge Energy have outperformed the Zacks Oil and Gas - Integrated - United States industry over the year-to-date period (+1.4% vs. -5%). This microcap company with a market capitalization of $424.12 million offers a compelling investment case anchored by its Cherokee development program, which provides a multi-year inventory of high-return wells with breakevens near $35 WTI. 

The company’s debt-free balance sheet, $104 million cash, and dual oil-gas exposure enable flexible capital allocation, particularly valuable amid rising LNG exports and Henry Hub strength. Recent results highlight strong production growth (+19% year over year), improved margins through cost control, and robust free cash flow supporting dividends and buybacks. Reserve conversion and strategic leasing enhance NAV visibility, while optionality in legacy gas assets offers upside. 

However, risks include Cherokee’s high capital intensity, commodity volatility, underutilized gas assets, reserve replacement challenges, and macroeconomic sensitivity, which could constrain cash flows and valuation.

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

Shares of NeurAxis have gained +2.6% over the year-to-date period against the Zacks Medical Info Systems industry’s gain of +28.1%. This microcap company with a market capitalization of $23.10 million addresses a large unmet need in pediatric gut-brain disorders with IB-Stim. Recent label expansion doubled its addressable market to $8 billion, with future adult indications pushing the opportunity to more than $22 billion.

Insurance coverage has grown to 53 million lives, with a permanent CPT Category I code, effective 2026, expected to streamline reimbursement and accelerate adoption. Revenue rose 46.2% year over year in second-quarter 2025 with 83.6% gross margins and improving operating leverage, though liquidity strain and reliance on discounts weigh on profitability. 

RED adds a $2 billion market opportunity but faces execution risk. With strong IP, first-mover advantage and guideline support, NeurAxis is well-positioned for long-term growth, though near-term adoption, coverage bottlenecks and margin pressures remain key risks.

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

Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), Manulife Financial Corp. (MFC) and Citizens Financial Group, Inc. (CFG).

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

IBM Rides on Holistic Growth, Healthy Demand Trends

Keytruda Drives Merck (MRK) Sales Amid Gardasil Issues

Featured Reports

Solid Asia Operation Aid Manulife (MFC), High Expenses Ail
Per the Zacks analyst, Manulife is set to grow on strong Asian business as well as expansion of Wealth and Asset Management business. However, increase in expenses weighing on margin concern.

Organic Growth Aid Citizens Financials (CFG), Amid Cost Woes
Per the Zacks analyst, Citizens Financial's strong revenue growth and increasing loan and deposit balances look encouraging. Yet, elevated expenses remain a concern.

Motion Technologies Segment Benefits ITT Amid High Costs
Per the Zacks analyst, ITT will benefit from strength in the Motion Technologies segment, led by high demand for brake components and specialized sealing solutions. High operating costs remain a woe.

Cost Cuts & New Products to Aid Lincoln Electric (LECO)
The Zacks analyst believes Lincoln Electric is poised to benefit from its efforts to cut down costs, focus on developing new products, investment to grow in automation and acquisitions.

Air Travel Demand Lifts Copa Holdings (CPA) Amid High Costs
The Zacks analyst is impressed with the improvement in air travel demand. High operating costs are, however, hurting Copa's bottom line.

Omni-Channel Retailing, Mixed-Use Assets Aid Macerich (MAC)
Per the Zacks Analyst, Macerich is likely to gain due to its focus on omni-channel retailing and shift towards mixed-use properties despite tenant bankruptcy and leveraged balance sheet.

Leadership in Digital Dentistry Aids Dentsply Sirona's (XRAY) Sales
Per the Zacks analyst, leadership in digital dentistry with Primescan 2 and DS Core, expansion of SureSmile aligners, and a high-growth Wellspect healthcare unit is driving sales for Dentsply Sirona.

New Upgrades

Rising AI Spending, Inventory Improvement Aid Micron (MU)
Per the Zacks analyst, Micron is benefiting from the boom in AI spending, which is fueling the demand for memory chips. Inventory improvement across multiple end markets is driving top-line growth.

Durango Expansion Aids Red Rock Resorts' (RRR) Performance
Per the Zacks analyst, Red Rock Resorts benefits from strong performances at Las Vegas and Durango Casino Resort. Also focus on development projects and portfolio reinvestments bode well.

United Natural Foods (UNFI) Strategic Endeavors Bode Well
Per Zacks analyst, United Natural Foods' strategic initiatives like customer base expansion, network optimization and lean management practices have been encouraging. It is managing costs effectively.

New Downgrades

Competition, Flucuating Commodity Price Ail Murphy (MUR)
Per the Zacks analyst Murphy Oil future prospects can be adversely impacted by the fluctuating commodity prices, while competitive industry can affect its profitability.

Civitas' (CIVI) production to get hurt due to Divestiture
The Zacks analyst believes that CIVI's divestiture of some DJ Basin assets will hit its production volumes in the second half of the year resulting in lower revenues.

Dave & Buster's (PLAY) Hurt By Dismal Comps & High Costs
Per the Zacks analyst, challenges related to value perception, comparable sales, margin, and cost pressures might continue to hurt Dave & Buster's performance.

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

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