Top Stock Reports for SAP, Novartis & Philip Morris

Wednesday, October 8, 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 SAP SE (SAP), Novartis AG (NVS) and Philip Morris International Inc. (PM), as well as two micro-cap stocks, ImmuCell Corp. (ICCC) and ClearOne, Inc. (CLRO). 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 Up Ahead of Fed Minutes Release

Today's Featured Research Reports

Shares of SAP have gained +20.4% over the past year against the Zacks Computer - Software industry’s gain of +22.7%. The company’s increasing Cloud ERP growth and disciplined cost management, coupled with widespread adoption of its Rise with SAP and Grow with SAP solutions, are driving SAP’s performance. AI innovation, streamlined operations and a strong transformation program, with expanding Business AI adoption and productivity gains across all areas, are tailwinds. 

Despite global headwinds, SAP reaffirmed its 2025 outlook, expecting cloud revenues of €21.6-€21.9 billion, up 26-28% at cc. Its ability to generate ample free cash flow anchors strategic investment decisions. Operating profit is cushioned by higher cloud revenues, better cloud margins and lower share-based compensation costs. 

However, the weak software license and services business hurt it. SAP faces revenue swings due to long sales cycles, complex deals, budget shifts and linked software-service sales.

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

Novartis’ shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+16.4% vs. -6.4%). The company’s performance has been good in the last few quarters. The company raised its annual guidance for operating income along with second-quarter results. Novartis has a strong and diverse portfolio with drugs like Kisqali, Kesimpta, Pluvicto and Leqvio. 

The uptake of Pluvicto and Scemblix has been outstanding and propels top-line growth. Our model estimates for Pluvicto and Kisqali indicate a CAGR of 43.7% and 41.2%, respectively, over the next three years. Approval of new drugs and label expansion of existing drugs should enable Novartis to offset the adverse impacts of the generic competition for key drugs. 

The recent spate of acquisitions and collaborations has further strengthened its pipeline. However, one of the top drugs, Entresto, is likely to lose patent protection. 

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

Shares of Philip Morris have gained +33.4% over the past year against the Zacks Tobacco industry’s gain of +42.3%. The company has been benefiting from strong pricing power and an expanding smoke-free portfolio. In the second quarter of 2025, Philip Morris' net revenues increased 7.1% year over year, driven by higher combustible tobacco pricing and increased smoke-free product volumes. 

The company has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. Philip Morris has implemented significant cost-saving measures and strategic initiatives to achieve its long-term financial goals. 

For 2025, adjusted earnings per share (EPS) are likely to be $7.43-$7.56, indicating a 13-15% year-over-year increase. However, Philip Morris faces premium valuation, currency volatility pressures and stringent global tobacco regulations impacting traditional product demand.

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

ImmuCell’s shares have outperformed the Zacks Medical - Products industry over the past year (+76.7% vs. +0.7%). This microcap company with a market capitalization of $58.35 million is positioned for strong growth driven by two core product lines and improving fundamentals. Re-Tain targets the $2 billion U.S. mastitis market as the only non-antibiotic treatment with no milk discard or slaughter restrictions, addressing an unmet clinical need and pending full FDA approval.

First Defense, led by Tri-Shield, dominates calf-level scours prevention with 48% market share and expanding reach through new formats and channels. Restored manufacturing capacity supports over $30 million in annual revenue, enabling 18% year-over-year sales growth and margin expansion to 44%. 

With EBITDA recovery, positive cash flow, and a strengthened balance sheet following debt refinancing, ImmuCell has the financial flexibility to sustain growth, fund innovation, and capitalize on Re-Tain’s regulatory and commercial potential in underserved animal health markets.

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

Shares of ClearOne have underperformed the Zacks Communication - Components industry over the past year (-33.4% vs. +85.2%). This microcap company with a market capitalization of $10 million has its profitability outlook remains structurally weak as operating loss accelerates. The second-quarter 2025 GAAP net loss widened 62% year over year to $4.6M due to 49% higher opex and a (12.1%) gross margin amid declining revenues (-17% year over year) and limited cost leverage. 

Liquidity pressures deepened, with the operating cash flow at $(2.6 M) and working capital declining to $9.4M despite $4M financing, constraining production and delaying launches. The gross margin erosion reflects unabsorbed overhead and production pauses, while international sales plunged 73% in APAC and 40% in EMEA. 

Management’s going-concern warning underscores strategic uncertainty as the firm pursues an asset sale. Elevated tariffs, inventory overhangs and weak pricing power compound structural risks, leaving limited near-term recovery potential.

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

Other noteworthy reports we are featuring today include Uber Technologies, Inc. (UBER), Robinhood Markets, Inc. (HOOD) and Cloudflare, Inc. (NET).

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

Strong Cloud Demand Drives SAP Revenue Growth

Kisqali, Pluvicto Drive Novartis (NVS) Amid Competition

Philip Morris (PM) Benefits from Strong Smoke-free Revenues

Featured Reports

Uber Continues to Benefit From Delivery Business Amid High Debt
The Zacks Analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. A debt load above industry levels and currency-related woes act as headwinds.

Product Expansion, Trading Revenues to Aid Robinhood (HOOD)
Per the Zacks analyst, strategic acquisitions, product diversification efforts, solid trading revenues and a robust liquidity position will likely aid Robinhood's financials.

Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily the Cloudflare One platform. Acquisitions like Kivera and BastionZero are a positive.

Investments Aid American Electric (AEP) Amid Rising Interest Expense
Per the Zacks analyst, investments in transmission projects and renewable expansion is likely to boost American Electric's revenues. Yet, rising interest expense remains a concern for the stock.

Permian Basin Presence, JV Aid Plains All American (PAA)
Per the Zacks analyst, Plains All American benefits from rise in production from the Permian region, with a revival in demand for midstream services. Its joint ventures are expected to drive earnings.

Cologuard Growth Aids Exact Sciences (EXAS), Cost Woes Stay
The Zacks analyst is impressed with Exact Sciences' Cologuard momentum, led by rescreens, care gap programs, and better commercial execution. Heightened costs from macroeconomic issues may pose risks.

Western Union (WU) to Gain From Global Strategy & Buyouts
The Zacks Analyst expects Western Union's Global Strategy to drive efficiency and profitability. The Intermex acquisition will strengthen its position in high-growth remittance corridors.

New Upgrades

Fair Isaac (FICO) Benefits From Strong Scores and Software Growth
Per the Zacks Analyst Fair Isaac is benefiting from strong financial performance driven by robust growth in its Scores and Software segments.

Capacity Expansion, Cost Reduction to Aid Albemarle (ALB)
According to the Zacks analyst, Albemarle should gain from its actions to boost its global lithium derivative capacity. Its cost-saving actions will also support margins.

Flowserve Pump Division Segment to Benefit Flowserve (FLS)
Per the Zacks analyst, Flowserve will gain from strength in the Flowserve Pump Division segment, driven by solid momentum in aftermarket business. The company's shareholders add to its appeal.

New Downgrades

Murphy (MUSA) Struggles with High Debt and Low Cash Reserves
The Zacks analyst believes that Murphy USA's $2.1 billion debt and low cash levels expose the company to commodity price volatility, as evidenced by its 76.2% debt-to-capitalization ratio.

Altice (ATUS) Plagued by High Operating Costs, Waning Subscriber Base
Per the Zacks analyst, Altice is likely to be plagued by high operating costs for infrastructure upgrades and maintenance and a declining subscriber base owing to macroeconomic woes.

Affordability Risks & High Expenses Hurting Lennar's (LEN) Growth
Per the Zacks analyst, Lennar's prospects are hurting from the softness in the housing market due to ongoing affordability challenges. Also, increased costs and expenses are hurting its margins.

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

Zacks Investment Research