Top Research Reports for AMD, Union Pacific & Lowe's

Thursday, May 15, 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 Advanced Micro Devices, Inc. (AMD), Union Pacific Corp. (UNP) and Lowe's Companies, Inc. (LOW), as well a micro-cap stock Syntec Optics Holdings, Inc. (OPTX). 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 >>> Eventful Pre-Market: PPI, Retail Sales, Jobless Claims and WMT Q1

Today's Featured Research Reports

Shares of AMD have gained +6.1% over the year-to-date period against the Zacks Computer - Integrated Systems industry’s gain of +7.5%. The company’s first-quarter results benefited from robust Data Center and Client revenues that fully offset sluggishness in the Gaming and Embedded segments. Data centers benefited from solid adoption of fifth-gen EPYC Turin processors and expanding Instinct AI accelerator deployments across hyperscalers and enterprises.

New product launches, such as the Ryzen 9 9950 X3D and Radeon 9070 series, also bolstered results. Gross margin expanded for the fifth consecutive quarter, driven by a more diverse Ryzen mix. AMD’s expanding partner base including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro has been a key catalyst. It has also expanded its portfolio through acquisitions.

However, AMD has been suffering from stiff competition, particularly from NVIDIA. Export controls on certain Instinct GPUs to China posed a regulatory challenge.

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

Union Pacific’s shares have underperformed the Zacks Transportation - Rail industry over the past year (-6.1% vs. -4.8%). The company is suffering 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, UNP continues paying 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 >>>)

Shares of Lowe's have underperformed the Zacks Retail - Home Furnishings industry over the past year (-1.6% vs. +4.6%). The company is facing challenges like market risks, intense competition, and a decline in DIY spending. Anticipated softness in comparable sales, margin pressure, and financial strain due to high debt may hinder performance.

The Zacks analyst projects a 2% decline in comparable sales for the first quarter, with an adjusted operating margin contraction of 60 basis points. Nevertheless, Lowe's has implemented a comprehensive Pro-focused strategy, emphasizing improved product availability, timely delivery, and an expanded assortment, complemented by a rewards program.

Strategic growth initiatives such as store expansion and enhanced customer experiences aim to position the company as a top omnichannel retailer. Investments in service offerings, operational efficiency, and long-term drivers like sustained home improvement demand support growth and profitability.

(You can read the full research report on Lowe's here >>>)

Syntec Optics’ have underperformed the Zacks Technology Services industry over the past year (-56.9% vs. +41.4%). This microcap company with market capitalization of $52.46 million have seen Strong OEM relationships provide revenue stability, but profitability is declining, with a $0.9 million net loss in the first nine months of 2024 due to rising COGS and G&A expenses. Cash reserves fell to $0.5 million, raising liquidity concerns.

Debt covenant violations led to reduced credit availability and higher interest rates while rising debt and interest costs added financial strain for the company. Nevertheless, Syntec Optics secured $2.1 million in new space optics orders, benefiting from strong LEO satellite demand.

The company is restarting high-precision laser guidance optics production in Q1 2025, reinforcing its defense role amid rising global military budgets. Its presence in the expanding photonics industry supports growth across healthcare, communications, and automation, while government incentives for domestic manufacturing could boost contracts.

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

Other noteworthy reports we are featuring today include AMETEK, Inc. (AME), Arch Capital Group Ltd. (ACGL) and NRG Energy, Inc. (NRG).

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

AMD Rides on Strong Adoption of EPYC & Ryzen Processors

Union Pacific (UNP) Rides on Dividends Amid Declining Volume

Lowe's (LOW) Omnichannel, Pro Customer Strategy to Lift Sales

Featured Reports

AMETEK (AME) Rides on Acquisition Benefits & Organic Growth
Per the Zacks analyst, Paragon Medical and Bison Gear & Engineering buyouts are aiding AMETEK's Electromechanical Group unit. Strong organic growth continues to drive the top-line.

Product Diversification, Rate Hike Aid Arch Capital (ACGL)
Per the Zacks analyst, Arch Capital is set to grow on rate increases, growth in existing accounts and global operations. However, exposure to cat loss induces earnings volatility.

Acquisitions & Diverse Customer Base Aid NRG Energy (NRG)
Per the Zacks analyst, NRG Energy's organic and inorganic acquisitions, is likely to boost its results. Its diverse customer base and ability to retain customers enhance its financial performance.

Strategic Initiatives Aid Weyerhaeuser (WY), High Costs Hurt
Per the Zacks analyst, Weyerhaeuser is benefiting from its focus on strategic business investments and solid demand for carbon-related projects. However, high costs and macro risks hurt.

Pure Storage (PSTG) Rides FlashBlade Amid Macro Uncertainty
Per the Zacks analyst, Pure Storage benefits from rising demand for FlashBlade solutions, including FlashBlade//E. However, stiff competition and sluggish macroeconomic conditions remain key concerns.

Cost-Saving Actions to Aid Sealed Air (SEE) Amid Low Volumes
The Zacks analyst is concerned that the lower volumes in the Protective segment will hurt Sealed Air's performance. However, this will be offset by its cost-saving actions and operational efficiency.

Expansion Efforts and Stable Solvency Aid Tandem (TNDM)
The Zacks analyst is impressed with Tandem's efforts to undertake innovation and develop products to cater to consumers' and clinical needs globally. Robust solvency is an added advantage.

New Upgrades

Nordstrom's (JWN) Omnichannel Strategies Seem Encouraging
Per Zacks analyst, Nordstrom's digital and store-expansion efforts bode well. It is focused on operational optimization. JWN's efforts to enhance performance at Rack stores are also yielding results.

Loan Growth Aids Bank of Hawaii (BOH), Liquidity Level Solid
Per the Zacks analyst, organic growth remains a key strength at Bank of Hawaii, driven by rising net interest income. A strong liquidity level will support its capital distribution activities.

Increasing Commercial and Defense Orders Drive Triumph Group (TGI)
Per the Zacks analyst, Triumph Group is likely to benefit from increasing orders from its diverse customer base including commercial airplane producers and various military organizations globally.

New Downgrades

Schneider (SNDR) is Hurt by Lower Brokerage Revenues & Volumes
The Zacks Analyst is worried about the fact that lower Network volumes and lower brokerage revenue per order hurt Schneider's top line.

Macro-economic & Tariff Woes to Hurt General Motors (GM)
Amid economic uncertainty and US auto tariffs, General Motors has trimmed its 2025 guidance and also put a temporary freeze on share buyback, making Zacks analyst bearish on the stock.

New Mexico Asset Sale to Hurt APA Corporation (APA)
The Zacks analyst believes that APA's decision to sell New Mexico assets, diminishes its global footprint and narrows down its long term potential growth.

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

Zacks Investment Research