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Thursday, September 25, 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 Alibaba Group Holding Ltd. (BABA), Bank of America Corp. (BAC), and Verizon Communications Inc. (VZ), as well as a micro-cap stock, Flanigan’s Enterprises, Inc. (BDL). 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 >>>
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 >>> Econ Data Surprisingly Good: Jobless Claims, Q2 GDP, Durable Goods & More
Today's Featured Research Reports
Alibaba’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+67.9% vs. +20.5%). Alibaba is benefiting from strong momentum across its international commerce retail business, which is driving top-line growth. Solid combined order growth in AIDC’s retail businesses and strength in AliExpress’ Choice are contributing well.
However, rising expenses related to new initiatives are likely to put pressure on margins. Growing macroeconomic uncertainties and unfavorable foreign exchange fluctuations remain risks. Sluggishness in online physical goods GMV at Taobao and Tmall marketplaces is a major concern.
(You can read the full research report on Alibaba here >>>)
Shares of Bank of America have underperformed the Zacks Financial - Investment Bank industry over the past year (+30.8% vs. +49.6%). The volatile nature of the capital markets business makes Bank of America’s future growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth might normalize going forward, thus hurting fee income. Elevated expenses due to steady investments in the franchise will hurt the bottom line.
Nevertheless, Bank of America's plans to open financial centers in new and existing markets and improve digital capabilities will likely aid its top line.
(You can read the full research report on Bank of America here >>>)
Verizon’s shares have underperformed the Zacks Wireless National industry over the past year (-3.3% vs. +11.9%). Fierce competition from other major players and saturation in the wireless market are hurting Verizon’s profits. High capital expenditures in order to support the launch and continued build-out of its 5G Ultra-Wideband network are straining the margin. Macroeconomic challenges hinder its growth potential to some extent.
However, Verizon has been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and 5G wireless standards as well as wireline connections. It is offering various mix and match pricing in both wireless and home broadband plans, which has led to solid customer additions.
(You can read the full research report on Verizon here >>>)
Flanigan’s Enterprises’ shares have outperformed the Zacks Retail - Restaurants industry over the past year (+6.3% vs. -9.9%). Flanigan’s offers exposure to a dual-format restaurant and liquor retail model with strong pricing power and expansion potential. Revenues in the second-quarter fiscal 2025 rose 11.6% to $53.6 million, supported by strategic price increases and new unit growth.
However, cost inflation and limited operating leverage constrain margin expansion, with muted same-store sales growth and digital capabilities lagging. Despite structural risks, the stock trades at a discount, suggesting potential value if growth and margin stability can be sustained.
(You can read the full research report on Flanigan’s Enterprises here >>>)
Other noteworthy reports we are featuring today include GE Aerospace (GE), McDonald's Corp. (MCD), and Adobe Inc. (ADBE).
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
Alibaba (BABA) Gains From International Commerce Businesses
Expansion Efforts to Aid Bank of America (BAC) Amid Cost Woes
Verizon (VZ) Rides on Healthy Wireless Traction, Solid Customer Adds
Featured Reports
Increasing MRO Orders Aid AAR Corp. (AIR), Despite Supply Chain Woes
Per the Zacks analyst, AAR Corp. is likely to benefit from increasing maintenance, repair and overhaul services. Yet supply chain issues result in delays and increase costs.
Chord Energy (CHRD) to Gain From Rystedt Well's Success
The Zacks analyst likes Chord Energy as its Rystedt Well is offering significant oil and gas reserves at lower costs. However, the firms expect low production in the fourth quarter.
AIG Benefits From Divestitures Amid High Combined Ratio
Per the Zacks analyst, business streamlining by selling low returning units and focusing on high growth units boosts operational capacities. However, deteriorating combined ratio remains a concern.
A Solid Cardiovascular Unit Continues to Aid Merit Medical (MMSI)
The Zacks analyst is upbeat about Merit Medical's strong potential in its cardiovascular unit despite its operation in a highly competitive market.
Expansion Efforts Aid McDonald's (MCD), High Costs Hurt
Per the Zacks analyst, McDonald's is benefiting from menu innovation, value offerings and global expansion strategies. However, higher beef and labor costs in Europe pose concerns.
Adobe (ADBE) Rides on Growing Adoption of Cloud Applications
Per the Zacks analyst, Adobe is benefiting from strengthening demand for its Creative Cloud, Document Cloud and Experience Cloud products.
Air Lease (AL) Benefits From Fleet Growth Amid Rising Costs
The Zacks analyst is impressed with the fact that constant fleet growth is aiding Air Lease's (AL) top line. However, rising operating expenses might weigh on its bottom line.
New Upgrades
Investment Banking Strength & Liquidity Aid Evercore (EVR)
Per the Zacks analyst, Evercore's strong investment banking revenues and expanding advisory client base support growth. Further, strong liquidity will support consistent shareholder returns.
Commercial Engines & Services Unit to Aid GE Aerospace (GE)
Per the Zacks analyst, GE Aerospace's Commercial Engines & Services business is driven by solid demand for LEAP, GEnx & GE9X engines and services, supported by fleet renewal and expansion activities.
Watts Water (WTS) Rides on Buyout Synergies & Solid Cash Position
Per the Zacks analyst, Watts Water is gaining from synergies from acquisitions, notably contributions from I-CON and EasyWater. Aggressive cost-reductions and a strong balance sheet bode well.
New Downgrades
Reduced Demand in Power Products Segment, High Debt Ail Honda (HMC)
Per the Zacks analyst, Honda's Power Products segment is likely to experience reduced demand in fiscal 2026, which may affect its top-line growth. Rising debt levels are also concerning.
B&G Foods (BGS) Grapples With Macroeconomic Headwinds
Per the Zacks analyst, B&G Foods is facing numerous headwinds including weaker consumer demand, heightened competition lower volumes, reduced pricing, unfavorable mix and foreign exchange impacts.
Housing Market Weakness & Macro Risks Hurt Louisiana-Pacific (LPX)
Per the Zacks analyst, Louisiana-Pacific's performance is pressured due to housing weakness and rising costs for raw materials, freight and labor. Also, tariff uncertainties add to the risks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
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