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Wednesday, April 23, 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 The Coca-Cola Co. (KO), Abbott Laboratories (ABT) and RTX Corp. (RTX), as well as two micro-cap stocks Investors Title Co. (ITIC) and Armanino Foods of Distinction, Inc. (AMNF). 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 and attempts 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 Back Up on Softening Stance from the White House
Today's Featured Research Reports
Coca-Cola’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+23.1% vs. +5.6%). The company experiences positive business trends, as evidenced by its strong track record of beating expectations. In fourth-quarter 2024, the company exceeded sales and earnings estimates for the eighth consecutive quarter, with earnings showing year-over-year improvement.
Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. Coca-Cola's all-weather strategy, combining marketing, innovation and revenue growth management, supports its vision of a total beverage company and is expected to drive revenue growth in 2025.
Coca-Cola has provided an optimistic view for 2025. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.
(You can read the full research report on Coca-Cola here >>>)
Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+25.6% vs. +5.9%). The company’s pipeline is unlocking new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business.
Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Within Nutrition, despite softness in international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business.
Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also adds to the worry.
(You can read the full research report on Abbott here >>>)
RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past year (+21.5% vs. +1.8%). The company ended the first quarter of 2025 on a solid note, with both its earnings and revenues having surpassed their respective Zacks Consensus Estimates.
RTX continues to receive ample orders for its wide range of combat-proven defense products, which resulted in RTX registering a robust defense backlog of $92 billion as of March 31, 2025. Steadily improving commercial air traffic has also been boosting the company's sales. RTX’s shares have outperformed its industry in the past year.
However, the uncertainties created by the recent imposition of U.S.-issued import tariffs and the counter-tariffs from other nations pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely affect RTX’s performance. The stock’s forward 12-month EV/SALES ratio is unimpressive when compared to its industry.
(You can read the full research report on RTX here >>>)
Shares of Investors Title have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+62.7% vs. +25.4%). This microcap company with market capitalization of $505.52 million remains committed to shareholder returns, maintaining a $0.46 quarterly dividend and issuing a $14.00 special dividend in December 2024, all funded through robust cash reserves.
In 2024, title insurance premiums rose 19.3% to $204.3 million, with agency-sourced premiums up 27%, driven by favorable mortgage trends and geographic expansion. Operational improvements, including a 3.7% headcount reduction and lower personnel costs, boosted after-tax margins to 12%. Strategic IT investments support compliance and client trust in a digital-first environment.
However, margin pressure is rising due to elevated commission payouts and a looming 10% rate cut in Texas. Regulatory costs are mounting across key states, and competition from larger national peers is intensifying. Off-balance sheet fiduciary risks, including $323.5 million in 1031 exchange deposits, further heighten operational exposure.
(You can read the full research report on Investors Title here >>>)
Armanino Foods of Distinction’s shares have outperformed the Zacks Food - Miscellaneous industry over the past year (+41% vs. -8.5%). This microcap company with market capitalization of $238.75 million delivered record profitability in 2024, driven by a gross margin expansion to 44% from 34.5%, reflecting improved operational efficiency, disciplined cost controls and strategic Capex.
A strong balance sheet, with $28.22 million in cash, no debt and $26.2 million in working capital, supports its $12-million repurchase program and $1.5-million capex plan for 2025. Sales were $69.42 million (up 9% year over year), with diversified channel growth and expanding international reach.
Consistent dividends, including 11 specials, highlight robust cash flow and earnings quality. Certified “AA” for food safety, Armanino Food’s high compliance standards support brand strength. Net income jumped 67% to $14.62 million, with the operating margin rising to 26.3%. Leadership continuity and insider alignment further reinforce long-term value creation.
(You can read the full research report on Armanino Foods of Distinction here >>>)
Other noteworthy reports we are featuring today include Netflix, Inc. (NFLX), Roche Holding AG (RHHBY) and Lowe's Companies, Inc. (LOW).
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
Coca-Cola's (KO) Innovations & Pricing Efforts Bode Well
Market Expansion, EPD Business Growth Aid Abbott (ABT)
Defense Orders Drive RTX Corporation (RTX), Despite Supply Chain Woes
Featured Reports
Netflix (NFLX) Rides on Subscriber Growth, Original Content
Per the Zacks analyst, Netflix's robust content portfolio is helping it gain ground globally. Increase in paid membership is driving the topline of the company.
Vabysmo, Phesgo Fuel Roche (RHHBY), Pipeline Setbacks a Woe
Per the Zacks analyst, strong growth of Vabysmo, Phesgo, Ocrevus and Hemlibra boost Roche's top-line as legacy drugs face biosimilars. However, pipeline setbacks are a headwind.
Lowe's (LOW) Omnichannel, Pro Customer Strategy to Lift Sales
Per the Zacks analyst, Lowe's pro customer strategy and omni-channel efforts could drive sales growth. Online comparable sales rose 9.5% during the fourth quarter of fiscal 2024.
Traction in Battery Management Solutions Aid Analog Devices (ADI)
Per the Zacks analyst, Analog Devices is benefiting from a strong momentum in the electric vehicle space on the back of its robust Battery Management System solutions.
Uniform Rental Unit to Aid Cintas (CTAS) amid Rising Costs
Per the Zacks analyst, Cintas' Uniform Rental and Facility Services unit is driven by the penetration of additional products and services into existing customers. High costs remain a concern.
Canadian Natural (CNQ) to Gain from 100% Ownership in AOSP
The Zacks analyst believes Canadian Natural's strategic acquisitions, including full AOSP ownership, will significantly improve its production capacity and cash flow prospects.
W.R. Berkley (WRB) Solid Insurance Business Aid, Cat Loss Ail
Per the Zacks analyst, W.R. Berkley's Insurance business is set to grow on rate increases, and improving premiums from international unit. Yet, exposure to cat loss, increasing expenses drag margins.
New Upgrades
Affirm (AFRM) Rides On Active Merchant Numbers & GMV Growth
The Zacks Analyst expects growth in Affirm's active merchant numbers and improvement in Gross Merchandise Value to fuel its top line. New deals and expansions will support performance boost.
Jazz's (JAZZ) Oncology Drugs Fuel Sales & Diversification
While Jazz's sleep disorder portfolio has exhibited strong demand, the Zacks Analyst is impressed with the company's oncology drugs whose sales diversify the existing marketed portfolio.
Loan Demand, Manageable Costs Support Hilltop Holdings (HTH)
Per the Zacks analyst, decent loan demand, relatively higher rates and prudent expense management will aid Hilltop Holdings. A solid balance sheet makes its capital distributions sustainable.
New Downgrades
Competition and Nil Dividend Payout Hurts Palantir (PLTR)
Per the Zacks analyst, high competition demands tech and talent investment, raising Palantir's difficulty in balancing growth and profitability. A nil dividend payout deters income-seeking investors.
High-Debt Burden & Stiff Rivalry Ail Western Digital (WDC)
Per the Zacks analyst, stiff competition from other major storage players limits the growth prospects of Western Digital. Customer concentration and leveraged balance sheet are added woes.
Delay in Rate Approval & Seasonality Ail FirstEnergy (FE)
Per the Zacks analyst, FirstEnergy's financial condition could be negatively impacted by a delay in base rate request approval. Unfavorable weather conditions might also lower the top line.
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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