Top Analyst Reports for Oracle, IBM & Merck

Wednesday, May 14, 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 Oracle Corp. (ORCL), IBM Corp. (IBM) and Merck & Co., Inc. (MRK), as well as a micro-cap stock Earth Science Tech, Inc. (ETST). 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 >>> No Econ Reports Equals Good News in Pre-Market

Today's Featured Research Reports

Oracle’s shares have outperformed the Zacks Computer - Software industry over the past year (+39.2% vs. +10%). The company is gaining from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings, including from winning cloud-computing contracts from AI-focused startups.

The solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP, bodes well. ORCL’s partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google holds promise. Oracle’s Gen 2 Cloud is driving artificial intelligence clientele. Its share buybacks and dividend policy are noteworthy.

The Zacks analyst expects fiscal 2025 net sales to grow 7.7% from fiscal 2024. However, higher spending on product enhancements toward the cloud platform amid increasing competition in the cloud domain is likely to limit margin expansion.

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

Shares of IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+61.5% vs. -2.5%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting. The company’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.

IBM’s core technology platform for AI capabilities watsonx is gaining significant market traction across industries. The company is collaborating with SAP to tap generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms.

However, stiff competition in various end markets is straining profits. Stringent cost-cutting efforts to boost margins beyond a certain threshold are likely to impact product quality. IBM’s frequent acquisitions have escalated integration risks.

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

Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-26% vs. -4.7%). The company’s rising competitive pressure on the diabetes franchise and persistent challenges for Gardasil in China remain overhangs. There are concerns about Merck’s ability to successfully navigate the Keytruda loss of exclusivity period and potential competition for the drug.

Nevertheless, Merck’s first-quarter earnings and sales beat estimates. Its blockbuster drug, Keytruda, and new products have been driving sales. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth.

Animal health is also contributing to growth. Merck boasts a strong cancer pipeline, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.

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

Shares of Earth Science Tech have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+11.4% vs. -7.8%). This microcap company with market capitalization of $42.53 million posted a 311.6% year-over-year revenue surge to $24.4 million for the nine months ended Dec. 31, 2024, driven by RxCompound and Peaks. The vertically integrated model, new revenue from shipping and balanced customer mix support scalability.

Operating cash flow rose to $2.4 million, reflecting tighter working capital controls. Gross margin held firm at 72.7% despite a 1,151% spike in salaries. Strategic acquisitions expanded pharmacy and telehealth capabilities, but integration, liquidity ($0.5 million cash against $2.3 million liabilities), and revenue concentration risks loom.

Share buybacks amid short-term debt, opaque marketing ROI, and thin net margins (8.5%) raise sustainability questions. Execution and financial discipline will be critical to support ongoing growth. The P/B ratio signals premium pricing based on asset expectations.

(You can read the full research report on Earth Science Tech here >>>)

Other noteworthy reports we are featuring today include CVS Health Corporation (CVS), MetLife, Inc. (MET) and Coinbase Global, Inc. (COIN).

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

Oracle (ORCL) Gains from Cloud Suite Adoption & Partnerships

IBM Rides on Strong Customer Growth in Software Segment

Keytruda Drives Merck (MRK) Sales Amid Gardasil China Issues

Featured Reports

Healthcare Delivery Aids CVS Health (CVS), Macro Woes Stay
The Zacks analyst is impressed with solid revenue gains in CVS Health's Healthcare Delivery business, led by robust patient growth at Oak Street. Yet, shifting macroeconomy may hurt its operations.

Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)
Per the Zacks analyst, several acquisitions and partnerships will continue to bolster the capabilities and global presence of MetLife. Efforts to control costs should drive its margins.

Coinbase (COIN) Banks on Improving Top Line, Expenses Hurt
Per the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues. However, escalating expenses hurt its margins.

Yum! Brands (YUM) Banks on Digital Efforts, High Costs Hurt
Per the Zacks analyst, Yum! Brands is likely to from digital efforts, increased kiosk adoption and unit expansion efforts. However, high costs and macro woes ail.

Loan Growth Supports M&T Bank (MTB), Rising Costs a Woe
Per the Zacks analyst, M&T Bank's increasing loans and deposit balances are supporting its financials. Yet, investments in strengthening its franchise will keep expenses elevated.

Wabtec (WAB) Benefits From Segmental Strength Amid Rising Expenses
Per the Zacks Analyst, Wabtec's top line is benefitting from higher sales across its Freight and Transit segments. Rising expenses pose a threat to the company's bottom line.

Antero Resources (AR) to Gain from Vast Appalachia Assets
Per the Zacks analyst, Antero Resources is poised for growth with a strong foothold in the Appalachian Basin, backed by extensive premium drilling locations in Marcellus and Utica Shales.

New Upgrades

Steady Tower Demand Aids Crown Castle (CCI), Debt Burden Ail
Per the Zacks Analyst, Crown Castle's efforts to augment tower business bode well amid the rising wireless connectivity usage. Yet, customer concentration and high interest expenses ail.

Seagate (STX) Rides on Mass Capacity Demand Amid High Debt
Per the Zacks analyst, Seagate's performance is gaining from improving demand for mass capacity storage solutions and expansion into the SSD storage market. However, high indebtedness is a concern.

Increasing Solar Projects Drive Emeren (SOL) Amid Supply Chain Issues
Per the Zacks analyst, Emeren is likely to benefit from its expanding solar projects worldwide. Yet supply chain issues result in delays and increase costs.

New Downgrades

Challenges in RV Market & Rising Expenses to Ail Thor (THO)
Per the Zacks analyst, the anticipated challenges in the RV market are likely to hurt Thor's top-line growth. Rising SG&A expenses are likely to exert pressure on profit margins.

Weakness in PTI Sector to Hurt MRC Global Amid Forex Woes
Per the Zacks analyst, MRC Global is struggling with poor performance of the Production & Transmission Infrastructure sector due to completion of large projects. Forex woes are an added concern.

Target (TGT) Struggles as Shoppers Cut Back on Spending
Per the Zacks analyst, Target's fourth quarter shows troubling signs with a decline in average transaction size, highlighting deepening consumer cutbacks. The average transaction amount fell 0.6%.

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

Zacks Investment Research