Top Research Reports for Costco, Chubb & Cigna

Friday, May 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 Costco Wholesale Corp. (COST), Chubb Ltd. (CB) and The Cigna Group (CI), as well as two micro-cap stocks Global Self Storage, Inc. (SELF) and Natural Health Trends Corp. (NHTC). 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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Today's Featured Research Reports

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+25.5% vs. +15.7%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.

The Zacks analyst expects Costco to register an 11.3% adjusted earnings per share improvement in fiscal 2025 on 7.2% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.

A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Shares of Chubb have gained +8.6% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +22.3%. The company’s suite of compelling products as well as services, focus on capitalizing on the potential of middle-market businesses and investments in various strategic initiatives pave the way for long-term growth.

Several distribution agreements have expanded its network, boosting its market presence. An impressive inorganic growth story helps to achieve a higher long-term return on equity. Chubb boasts a strong capital position with sufficient cash generation capabilities that ensure steady payouts to investors.

Chubb expects the quarterly adjusted net investment income to have a run rate between $1.67 billion and $1.75 billion over the next six months. However, exposure to catastrophe loss induces underwriting volatility. Escalating expenses weigh on margin expansion.

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

Cigna’s shares have outperformed the Zacks Medical - HMOs industry over the year-to-date period (+12.2% vs. -29.8%). The company’s first quarter earnings beat estimates. Strategic acquisitions like Express Scripts and collaborations with Centene and Virgin Pulse support long-term growth. Revenues rose 14% year over year in 1Q25 to $65.5 billion.

It streamlined its portfolio with divestitures to Chubb, New York Life and HCSC, focusing on core health services. Shareholder returns remain strong with $1.5 billion in buybacks and $412 million in dividends in the first quarter.

However, challenges include high debt, rising interest expenses and a low ROA. High medical and service costs continue to pressure margins, with a medical care ratio projected at 83.2–84.2% for 2025. It must manage debt and improve operational efficiency to enhance long-term returns. It expects medical members to decline to 18.1M in 2025. As such, the stock warrants a cautious stance.

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

Shares of Global Self Storage have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+19.3% vs. +11.8%). This microcap company with market capitalization of $63.15 million posted strong first-quarter 2025 results, with net income up 108.6% and Adjusted Funds From Operations (AFFO) rising 16.8%, reflecting cost discipline and solid operating leverage.

Same-store Net Operating Income (NOI) grew 6.3%, outpacing revenue gains. Occupancy rose to 92.1%, while tenant duration hit a record 3.5 years, underscoring customer retention strength. The REIT holds $24.9 million in liquidity, with no revolver draw, enabling growth without dilutive equity. A 5.19% dividend yield is well-covered by AFFO.

However, narrow revenue growth, rising interest expenses, geographic concentration, elevated liabilities and asset value contraction pose risks. Although shares trade at discounts to industry EV/Sales, EV/EBITDA, and P/B medians, the REIT offers yield and resilience but faces competitive and structural headwinds.

(You can read the full research report on Global Self Storage here >>>)

Natural Health Trends’ shares have outperformed the Zacks Consumer Products - Discretionary industry over the year-to-date period (+11.1% vs. -8.6%). This microcap company with a market capitalization of $53.31 million has its core market strength lying in Hong Kong, which is driving 85% of first-quarter 2025 revenue despite a modest annual decline.

Sequential order growth and new product launches signal resilience, but heavy reliance on China poses regulatory and macroeconomic risks. Expansion into Colombia and other regions offers long-term diversification, though non-core markets remain underpenetrated. The first quarter of 2025 saw positive cash flow and net income, with $41.9 million in liquidity and no debt, but dividend payouts strain resources.

Membership attrition (down 4.6% year over year), rising commissions, and reliance on promotional incentives pressure margins. While trading below historical and industry valuation multiples, growth remains constrained by geographic overconcentration and trade volatility.

(You can read the full research report on Natural Health Trends here >>>)

Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Cloudflare, Inc. (NET) and Exelon Corp. (EXC).

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

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

Better Pricing, New Business Growth Drive Chubb Limited (CB)

Cigna (CI) Aided by Strategic Acquisitions Amid High Costs

Featured Reports

Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily Cloudflare One platform. Strategic buyouts like Kivera and BastionZero are a positive.

Revenue Decoupling & Regulated investment Aid Exelon (EXC)
Per the Zacks analyst Exelon's decoupling mechanism mitigates impact of load fluctuation and its planned $38B investments through 2028 will strengthen its operation.

Connect & Control Technologies Unit Aids ITT Amid High Costs
Per the Zacks analyst, ITT gains from strength in the Connect & Control Technologies unit, led by growth in connector sales within the defense and industrial markets. High operating costs remain a woe

Rise in NII, Loans Aid Comerica (CMA), Rising Costs Ail
Per the Zacks analyst, a robust loan pipeline, rising net interest income (NII), along with a solid liquidity profile, will support Comerica's financials. Yet, a rise in costs remains a woe.

Marathon Digital (MARA) Faces Asset Growth with Bitcoin Risk
Per Zacks, Marathon Digital effectively blends short-term Bitcoin income with long-term asset growth. Still, MARA is risky due to its heavy exposure to Bitcoin's volatility.

Lumen (LUMN) Gains from PCF Solutions, Heavy Debt a Concern
Per the Zacks analyst, increasing demand for Lumen's Private Connectivity Fabric (PCF) solutions bodes well. However, high costs and massive debt remain concerns for the company.

BEAM's Gene-Therapy Pipeline Holds Promise Amid Competition
Per the Zacks analyst, BEAM's lead candidate, BEAM-101, a base-editing therapy being developed to treat two rare diseases, holds promise. However, stiff competition in the target market remains a woe

New Upgrades

Mondelez (MDLZ) Organic Sales Gain on Solid Pricing Actions
Per the Zacks analyst, Mondelez's organic sales have been gaining from its strategic pricing initiatives. During the first quarter, favorable pricing aided organic sales growth of 3.1%.

CyberArk (CYBR) Rides on Shift to Subscription Services
Per the Zacks analyst, CyberArk's focus on selling more subscription-based services is helping the company generate stable revenues and higher margins.

Phibro (PAHC) Gains Ground on Expanding Animal Health Business
The Zacks analyst is impressed with Phibro's Animal Health business, which demonstrated a strong 42% sales growth in the third quarter of fiscal 2025.

New Downgrades

NOV Inc. (NOV) Faces a Major Threat from Energy Transition
The Zacks analyst believes that global decarbonization trends could weaken future demand for NOV's traditional oilfield services despite its tech-driven efficiency initiatives.

Shell (SHEL) Hurt by Chemicals Segment Underperformance
The Zacks analyst cautions that weak utilization and low margins in Shell's Chemicals segment could weigh on the company's future revenue and profit performance.

Ongoing Macro Risks & High Expenses Hurt RH's Prospects
Per the Zacks analyst, RH's prospects are hurting from higher costs and expenses, alongside the ongoing market uncertainties, including tariffs risks, elevated inflation and foreign exchange risks.

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

Zacks Investment Research