Top Research Reports for Verizon Communications, Bristol-Myers Squibb & Canadian Pacific

Wednesday, May 7, 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 Verizon Communications Inc. (VZ), Bristol-Myers Squibb Co. (BMY) and Canadian Pacific Kansas City Ltd. (CP), as well a micro-cap stock Nova LifeStyle, Inc. (NVFY). 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 in the Green: Disney Beats, Fed Report Awaits

Today's Featured Research Reports

Shares of Verizon Communications have gained +12.8% over the past six months against the Zacks Wireless National industry’s gain of +13.5%. The company recorded relatively healthy first-quarter 2025 results with both the top and bottom lines beating the Zacks Consensus Estimate. 

With one of the most efficient wireless networks in the U.S., the company continues to deploy advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. Its focus on mix-and-match pricing across wireless and home broadband offerings has contributed to solid customer additions. The continued expansion of 5G mmWave in multiple markets is a positive development. 

However, fierce competition from major players is hurting VZ’s profits. Heavy promotional spending and discounts to drive subscriber growth are putting pressure on margins. Macroeconomic challenges remain a concern.

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

Bristol-Myers Squibb shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+14.3% vs. -17.6%). The company reported better-than-expected first quarter results driven by higher demand for Opdivo, Breyanzi, Reblozyl and Camzyos. Consequently, the annual guidance was raised to reflect this performance. Recent label expansions of blockbuster oncology drug Opdivo should fuel further growth. 

However, generic competition for Revlimid, Pomalyst, Sprycel and Abraxane is adversely impacting revenue growth.  While the performance of new drugs such as Opdualag, Camzyos and Cobenfy is encouraging, they will take some time to make a significant contribution to the top line. 

Nonetheless, Bristol Myers’ efforts to streamline operations should boost the bottom line. Shares of the company are driven by the encouraging efforts to boost both top-line and bottom-line growth.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Shares of Canadian Pacific have declined -9.4% over the past year against the Zacks Transportation - Rail industry’s decline of -12.6%. The company’s high operating expenses continue to weigh on the company's bottom line. CP's highly leveraged balance sheet is also a cause for worry. High capex may also create headwinds. Considering all these factors, investors are advised not to bet on the stock now. They should wait for a better entry point.

Nevertheless, following the approval of the merger with Kansas City Southern, the company is known as Canadian Pacific Kansas City Limited. The deal is anticipated to draw synergies (annually) of $1 billion within three years. 

The merged entity has started to offer a daily premium intermodal service between the U.S. Midwest and Mexico. The Zacks analyst is impressed with Canadian Pacific Kansas City's efforts to reward its shareholders through dividends and share repurchases.

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

Nova LifeStyle’s shares have underperformed the Zacks Furniture industry over the past year (-51.6% vs. -28.1%). This microcap company with market capitalization of $14 million is facing ongoing losses, revenue contraction, high administrative costs and execution risk in portfolio revamp challenge scalability and margin stability amid macro demand sensitivity.

Nevertheless, Nova LifeStyle’s 2024 gross margin rose to 44% from 38% as the firm exited low-margin products and boosted average selling price (ASP) by 43%, despite a 12.6% sales decline. Operating expenses fell 9.2%, lowering net loss to $5.6 million from $7.7 million, but general and administrative costs rose 19.8%, and research and development (R&D) cuts limited innovation gains. 

A revamped product mix and North America focus (97.4% of sales) support pricing power, yet a 39% volume drop and Asian market exit signal weak demand. Sourcing diversification to Vietnam, India and Malaysia mitigates trade risk, though reliance on third-party vendors raises delivery and quality concerns.

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

Other noteworthy reports we are featuring today include Diageo plc (DEO), TC Energy Corp. (TRP) and Edwards Lifesciences Corp. (EW).

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

Diverse Product Portfolio, Strategic Alliances Aid Verizon (VZ)

New Drugs Fuel Bristol Myers (BMY) Amid Generic Competition

Canadian Pacific (CP) Rides on Dividends Amid Rising Expenses

Featured Reports

Productivity Initiatives to Aid Diageo (DEO) Amid Inflation
Per the Zacks analyst, Diageo is refining its $2 billion productivity program to drive efficiency across the business while ensuring long-term sustainable growth and balancing cost savings.

TC Energy's (TRP) Vast Pipeline Network Fuels Future Growth
The Zacks analyst believes that TC Energy's robust pipeline infrastructure and gas storage assets offer a solid foundation for future growth, but its debt of over C$45 billion remains a concern.

Edwards (EW) Rides on Solid TMTT Sales and Global Prospects
Edwards' strong TMTT sales globally is a major positive. Per the Zacks analyst, differentiated therapies, positive pivotal trial results and favorable real-world clinical outcomes are the key drivers.

Strong Demand, Expansion Actions Aid Nucor (NUE)
While Nucor faces headwinds from weak selling prices, it will benefit from strong demand in its major markets and efforts to boost production capacity, per the Zacks analyst.

Healthy Demand Aid Equity Residential (EQR) Amid High Supply
Per the Zacks Analyst, healthy demand to sustain the occupancy level and support revenue growth for Equity Residential. However, elevated supply in some markets and high interest expenses ail.

Defense Orders Drive Leidos (LDOS), Amid Labor Shortage
Per the Zacks analyst, Leidos Holdings is likely to benefit from increasing defense order growth from the Pentagon and US allies. Yet labor shortage result in delays and likely impact operating result

Strategic Buyouts to Aid Genuine Parts (GPC) Amid Tariff Woes
Acquisitions of MPEC and Walker has strengthened Genuine Parts' NAPA store network and Midwest footprint. However, cost pressures due to tariffs may limit the firm's profits, per the Zacks analyst.

New Upgrades

Juniper (JNPR) Rides on Healthy Demand Trends, AI Focus
Per the Zacks analyst, solid momentum in the Cloud and Enterprise verticals will likely drive Juniper's top line. A strong focus on advancing the AI networking portfolio is a tailwind.

Encompass Health (EHC) Gains From Expansionary Measures
The Zacks Analyst believes that Encompass Health's expansion through de novo hospitals will drive patient volumes and profit levels.

Paylocity (PCTY) Rides on Strong Demand for Cloud Solutions
Per the Zacks analyst, Paylocity is benefiting from strong adoption of its cloud-based Human Capital Management (HCM) and payroll software solutions tailored for mid-sized businesses.

New Downgrades

Rising Expenses & Oil Price Volatility Ail SM Energy (SM)
Per the Zacks analyst, SM Energy's profits suffer due to falling oil prices and rising lease operating and transportation costs, threatening future revenue and cash???flow stability.

PC Market Weakness Hurts Dell Technologies (DELL) Prospects
Per the Zacks analyst, Dell is suffering from a challenging macroeconomic environment. It suffers from stiff competition in the PC market from the likes of HP and Lenovo.

Soft OSB Segment & Macro Woes Hurt Louisiana-Pacific (LPX)
Per the Zacks analyst, Louisiana-Pacific is hurting from to lower selling prices and decreased sales volumes in the OSB segment. Also, rising costs from expected tariffs are added concerns.

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

Zacks Investment Research