Top Analyst Reports for SAP, Linde & Parker-Hannifin

Wednesday, February 25, 2026

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), Linde plc (LIN) and Parker-Hannifin Corp. (PH), as well as two micro-cap stocks Daily Journal Corp. (DJCO) and Espey Mfg. & Electronics Corp. (ESP). 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 Push Higher Ahead of NVIDIA Earnings

Today's Featured Research Reports

Shares of SAP have underperformed the Zacks Computer - Software industry over the past six months (-27.3% vs. -25.8%). The company is facing "cloud backlog," which is pressured by deal mix and longer sales cycles, delaying near-term recognition. Continued weak software license and services revenues hurt it.

Nevertheless, SAP’s performance hinges on strong Cloud ERP growth and uptake of its Rise with SAP and Grow with SAP solutions amid macro and geopolitical tensions. Solid booking momentum sets up SAP for faster top-line growth through 2027. Steady adoption of Business Data Cloud and Business AI innovations is a catalyst. The current cloud backlog continues to rise, despite structural headwinds from large enterprise contracts with termination-for-convenience clauses. 

SAP forecasts record €10 billion free cash flow in 2026, driven by efficiency, disciplined capital allocation and AI adoption, while a new €10 billion buyback signals strength in long-term cash flows, margin expansion and disciplined shareholder returns.

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

Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the past six months (+6.2% vs. +5.4%). The company is one of the top players in the industrial gas business, known for its steady profit growth, smart use of its money and industry-leading efficiency. Linde holds a record-high order book of $10 billion, with projects deemed highly reliable thanks to their fixed-fee contracts and the company’s strong track record of successful execution.

Linde has maintained industry-leading operating margins with further improvements expected from cost-control programs and automation. The company reported strong fourth-quarter results due to higher pricing and increased volumes from the Americas segment. 

Yet, LIN is not very hopeful about Europe’s economy this year. Moreover, prices for helium are falling at a high single-digit pace due to an oversupply in the market, a trend affecting the global market. Weakness in China’s manufacturing sector also pose risks.

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

Shares of Parker-Hannifin have outperformed the Zacks Manufacturing - General Industrial industry over the past six months (+37.2% vs. +18%). The company is benefiting from steady demand in the commercial and military end markets across both OEM and aftermarket channels within the Aerospace segment. 

The accretive acquisitions spark optimism in the stock. The Win strategy is driving its margins and allowing the company to continue returning value to shareholders. In April 2025, Parker-Hannifin hiked its quarterly dividend rate by 10% to $1.80 per share. Acquired assets are another positive factor driving its top line. 

However, weakness in the transportation market due to lower demand for automotive cars is worrisome. The company has been dealing with high costs and expenses, which are likely to affect its margins and profitability. The company’s high debt level is an added woe. Also, given Parker-Hannifin’s international presence, foreign currency headwinds are concerning.

(You can read the full research report on Parker-Hannifin here >>>)

Daily Journal’s shares have gained +12.6% over the past six months against the Zacks Publishing - Newspapers industry’s gain of +27.3%. This microcap company, with a market capitalization of $687.08 million, combines a sizable asset-backed balance sheet with a growing government-focused software business. As of Dec. 31, 2025, it held $529.5 million in assets, including $481.3 million in marketable securities with substantial unrealized gains, against just $20 million in margin debt, supporting liquidity and intrinsic value. 

Journal Technologies, ~78% of revenues, grew 12% YoY to $15.2 million with expanding pretax income, driven by recurring license, maintenance and e-filing fees from government clients. Deferred revenues of $18.8 million enhances visibility. 

Risks center on earnings volatility from a concentrated six-stock portfolio; Q1 results swung to a net loss on $11.7 million of unrealized losses. Margin borrowing, though declining, could amplify downside in a market drawdown. Shares trade at 2.57X EV/Sales and 1.6X EV/EBITDA, well below peer and market multiples, near historical medians. 

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

Shares of Espey Mfg. & Electronics have outperformed the Zacks Electronics - Military industry over the past six months (+30% vs. -30.1%). This microcap company with a market capitalization of $170.25 million centers on margin expansion, balance-sheet strength, and a solid defense pipeline, tempered by order and execution risks. Gross margin expanded to ~35% from ~25%, lifting net income to $5 million. 

Improved mix and efficiencies signal stronger cost absorption and operating leverage as backlog converts. Liquidity is robust, with $43 million in cash and securities and no debt usage. Rising contract liabilities ($26.3 million) alongside higher inventories suggest customers are partially funding working capital. 

Risks include lower fiscal 2026 order expectations, revenue volatility tied to milestone timing, engineering execution risk, customer concentration (top four ~65% of sales), and softer cash conversion. Shares have materially outperformed peers and the S&P. At 3.09X EV/sales and 12.71X EV/EBITDA, valuation sits above sub-industry averages but below broader market multiples. 

(You can read the full research report on Espey Mfg. & Electronics here >>>)

Other noteworthy reports we are featuring today include Altria Group, Inc. (MO), TE Connectivity plc (TEL) and Vulcan Materials Co. (VMC).

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

SAP Rides on Strength in Cloud Business and AI Advancements

Linde's (LIN) Long-Term Contracts With Minimum Volume Commitments Aid

Aerospace Unit Drives Parker-Hannifin (PH) Amid High Debt

Featured Reports

Altria (MO) Benefits From Strategic Pricing Initiatives
Per the Zacks analyst, Altria is benefiting from robust pricing actions. In the fourth quarter 2025, higher pricing strategies aided revenues across the Smokeable Products and Oral Tobacco categories.

Public Sector Demand to Aid Vulcan (VMC) Amid Macro Woes
Per the Zacks Analyst, robust public sector demand and strong aggregate-led business performance to aid Vulcan's prospects. However, lingering weakness in residential construction is concerning.

Teva's New Branded Drugs Reviving Growth Amid Generic Softness
While Teva's newer branded drugs, Austedo, Uzedy and Ajovy are reviving top-line growth, the recent softness in its generics business is a concern per the Zacks analyst.

Diverse Clientele Benefits Equifax (EFX) Amid Low Liquidity
Per the Zacks analyst, Equifax's broad client base is highly advantageous as it mitigates weaknesses in any sector by capitalizing on strengths in others. Low liquidity is concerning.

Haemonetics (HAE) Banks on Plasma Strength, Macro Woes Stay
The Zacks analyst is impressed with Haemonetics' ongoing momentum in the Plasma franchise, owing to share gains in NexSys PCS with Persona. Yet, rising costs from macroeconomic woes is a concern.

SolarEdge Technologies (SEDG) Benefits From Global Reach Despite Tarif
Per the Zacks analyst, SolarEdge Technologies is likely to benefit from its expanding global presence, though rising U.S. import tariffs continue to create uncertainty for international operations.

ProAssurance (PRA) Rides On Solid Investment Income and Cost Control
Per the Zacks analyst, its rising net investment income will fuel ProAssurance's top-line growth. Also, its cost control efforts are strengthening its operating margins.

New Upgrades

TE Connectivity (TEL) Rides on Strong Industrial Solutions Growth
Per the Zacks analyst, TE Connectivity is benefiting from strong growth in the Industrial Solutions segment driven by strong momentum in Digital Data Networks.

Loan Growth and Decent Liquidity Profile Supports First Horizon (FHN)
Per the Zacks analyst, First Horizon's diversified portfolio and strength in commercial and industrial lending, continue to support its loan growth. Its decent liquidity profile remains a tailwind.

Solid Loan Growth, Restructuring Supports Hilltop Holdings (HTH)
Per the Zacks analyst, Hilltop Holdings is poised for top-line growth given the rise in loan balances. Its restructuring efforts to diversify business as a profitable banking operation are impressive.

New Downgrades

High Opex and Improvement in Vehicle Safety to Ail Copart (CPRT)
Per the Zacks analyst, Copart's rising G and A expenditures may weigh on its near-term margins. Also, improvement in safety technology may reduce the frequency of collisions, affecting revenue growth.

Boston Beer (SAM) Continues to Witness Lower Shipments and Depletions
Per the Zacks analyst, Boston Beer continues to experience soft depletions and shipment volumes. In fourth-quarter 2025, shipment volumes decreased 7.5% year over year while depletions dropped 6%.

Macroeconomic and Pricing Pressures Hurt RingCentral (RNG) Prospects
Per the Zacks analyst, RingCentral suffers from challenging macroeconomic uncertainty and pricing pressures in the enterprise segment, primarily due to COVID-related contract lapses.

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

Zacks Investment Research