Top Stock Reports for Morgan Stanley, Union Pacific & Southern Company

Thursday, November 6, 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 Morgan Stanley (MS), Union Pacific Corp. (UNP) and The Southern Co. (SO), as well as a micro-cap stock Aware, Inc. (AWRE). 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 >>> Pre-Markets Improve on Big Earnings Morning

Today's Featured Research Reports

Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the year-to-date period (+34.4% vs. +33.3%). The company’s focus on wealth and asset management operations, along with its strategic alliances and acquisitions, will aid the top line. Its deal to buy EquityZen will help it tap the rapidly growing private markets landscape. 

The performance of the investment banking (IB) business will continue to be driven by a strong pipeline. The Zacks analyst project total revenues and IB fees to increase 11.7% and 12.8% in 2025, respectively. However, costs will remain elevated due to expansion efforts. The Zacks analyst projects total expenses to rise 9.1% in 2025. 

While trading revenues have been increasing, growth in the same might become challenging in the future because of the volatile nature of the business. Yet, the company’s efficient capital distributions reflect a solid balance sheet.

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

Shares of Union Pacific have underperformed the Zacks Transportation - Rail industry over the year-to-date period (-3.1% vs. +2.4%). The company which recently inked a deal to buy Norfolk Southern, is suffering big time as e-commerce sales have normalized and consumer markets have softened. 

Geopolitical uncertainty and high inflation continue to hurt consumer sentiment. Reduced fuel surcharge revenues, too, are a concern. Due to these headwinds, volumes are suffering. Operating ratio (operating expenses as a percentage of revenues) remains under pressure, mainly due to revenue woes. Given the soft freight market scenario, the revenue weakness is likely to persist. 

To combat the revenue weakness, UNP is looking to cut costs. In the meantime, it continues to pay dividends. UNP is also active on the buyback front. Considering all these factors, investors are advised to wait for a better entry point. Our thesis is supported by the Neutral recommendation on the stock.

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

Southern Company’s shares have gained +13.7% over the year-to-date period against the Zacks Utility - Electric Power industry’s gain of +22.6%. This company, a leading U.S. electric utility in the Southeast, offers a solid opportunity with its recession-proof model, substantial load pipeline, and investments in regulated utilities like natural gas and battery storage.

Southern Company’s strategic contracts and protective tariff structures provide a stable earnings outlook, while its $76 billion capital plan supports growth through grid modernization. Management has signaled a potential upward revision in earnings growth by 2027. 

However, Southern faces risks from its high leverage, which limits financial flexibility, and its cautious approach to nuclear energy may leave it behind peers. Also, regulatory challenges, economic slowdowns, and increasing competition from decentralized energy solutions pose threats. Therefore, the company warrants a cautious stance from investors.

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

Shares of Aware have gained +16.4% over the year-to-date period against the Zacks Internet - Software and Services industry’s gain of +34.4%. This microcap company with a market capitalization of $47.34 million operates in a growing global market for secure, standards-aligned biometric identity solutions, leveraging its Awareness platform and AwareID to capture demand across financial, government and enterprise sectors. Its SaaS-first strategy is gaining traction, with recurring revenue comprising 69.3% of total sales and solid subscription revenues. 

Strong liquidity supports self-funded growth, while federal and enterprise contracts enhance visibility. Platform innovations enhance competitiveness. Yet license revenue remains volatile, recurring growth trails peers and cash burn persists amid higher fixed costs.

Leadership transitions and slow commercial conversion pose execution risks. The valuation suggests investors are pricing in limited near-term growth, offering potential upside if AWRE executes on its SaaS transition and profitability goals.

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

Other noteworthy reports we are featuring today include NIKE, Inc. (NKE), Tractor Supply Co. (TSCO) and Cboe Global Markets, Inc. (CBOE).

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

Increased Focus on Wealth Management to Aid Morgan Stanley (MS)

Union Pacific (UNP) Strong on Dividends, Despite Freight Downturn

Southern (SO) Poised to Gain from Its Stable Utility Model

Featured Reports

NIKE (NKE) Gains Traction as "Win Now" Strategy Sparks Turnaround
Per the Zacks analyst, NIKE's "Win Now" strategy is driving an operational reset through innovation, focused execution, and sport-led marketing, setting the stage for renewed growth and profitability.

Tractor Supply's (TSCO) Life Out Here Strategy Bodes Well
Per Zacks analyst, Tractor Supply is focused on its Life Out Here lifestyle strategy to attract customers and expand market share. It benefits from the execution of its everyday low-price strategy.

Waters' (WAT) Rides on Strong Demand for Testing Solutions
Per the Zacks analyst, Waters is benefiting from an expanding portfolio, improving pharma spending and strong demand for flagship HPLC product.

Business Strategies Aid Builders FirstSource (BLDR), Macro Risks Hurt
Per the Zacks analyst, Builders FirstSource is gaining from accretive acquisitions and digital enhancements. However, the soft housing market and rising costs and expenses are pulling back growth.

Align (ALGN) Rides on Growing Invisalign Volume, Innovation
The Zacks analyst is optimistic about Align's strong market rollout of several Invisalign products globally. The company's focused efforts to expand portfolio aids growth.

Loan Growth Supports SouthState (SSB), Rising Costs a Woe
Per the Zacks analyst, SouthState's robust loan growth, driven by the Independent Bank acquisition, supports financials. Yet, rising expenses remain a concern.

Strong Pipeline of Projects Across the Globe Aid Canadian Solar (CSIQ)
Per the Zacks analyst, Canadian Solar benefits from strong pipeline of solar and battery energy storage projects. Diverse customer base across the globe further supports its growth.

New Upgrades

Increasing Transaction Fees Aid Cboe Global Markets (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on rising transaction fees driven by trading volume growth (given global reach and strength in proprietary products) and non-transactional revenues.

BlackBerry (BB) Buoyed by QNX & Secure Comms Strength, Healthy Margins
Per the Zacks analyst, continued design wins across the QNX and Secure Communications divisions cushion BlackBerry's top-line. Strong revenue and cost control drives higher profit margins.

Nissens Acquisition, Strong Demand to Aid Standard Motor (SMP)
Per the Zacks analyst, the aging vehicle fleet is expected to boost demand for automotive parts, which is likely to fuel Standard Motor's top line. The acquisition of Nissens also bodes well.

New Downgrades

Liberty Energy (LBRT) Hurt by Slowdown in Industry's Frac Activity
The Zacks analyst highlights challenges for Liberty Energy's earnings growth due to slowdown in industry's frac activity including market pricing pressures.

Air Lease (AL) Grapples With Rising Expenses & High Debt
The Zacks analyst is worried about the fact that rising operating expenses are likely to keep AL's bottom line under pressure. A debt-laden balance sheet is another concern.

Rising Expenses, Growing Competition Ail MercadoLibre (MELI)
Per the Zacks analyst, MercadoLibre is hurt by rising expenses related to warehousing, free shipping subsidies and mPOS discounts. Also, intensifying e-commerce competition poses risk.

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

Zacks Investment Research