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Tuesday, May 27, 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 AT&T Inc. (T). 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 Up on New Tariff Developments
Today's Featured Research Reports
Coca-Cola’s shares have outperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (+16% vs. +8%). The company delivered a strong first-quarter 2025, marking its ninth consecutive quarter of beating top- and bottom-line expectations. First-quarter 2025 performance was driven by broad-based growth, improved price/mix, and effective execution of its all-weather strategy, which blends marketing, innovation, and revenue growth management.
Innovation and marketing continue to drive brand momentum, with impactful campaigns and product launches. However, volume softness in key markets like North America and Mexico, due to weather, timing shifts, and weaker sentiment, tempered momentum.
Currency headwinds, higher taxes, and rising interest costs continue to be concerns. Despite reaffirming its 2025 guidance, management signaled a cautious near-term outlook, describing Q2 as potentially "choppy."
(You can read the full research report on Coca-Cola here >>>)
Shares of Abbott have outperformed the Zacks Medical - Products industry over the year-to-date period (+15.7% vs. +4.3%). 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 its 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 >>>)
AT&T’s shares have outperformed the Zacks Wireless National industry over the year-to-date period (+23% vs. +13.5%). The company is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. AT&T expects to gain a competitive edge over rivals through edge computing services that allow businesses to route application-specific traffic where they need it and where it’s most effective.
Acquisition of Lumen’s fiber internet connectivity business will significantly expand market reach. Collaboration with Ericsson to deploy a commercial-scale open radio access network will likely bring long term benefits.
However, the company is facing a steady decline in linear TV subscribers and legacy services. Stiff competition in the U.S. wireless market remains a major concern. As AT&T tries to woo customers with discounts, freebies and cash credits, margin pressures tend to rise.
(You can read the full research report on AT&T here >>>)
Other noteworthy reports we are featuring today include Honda Motor Co., Ltd. (HMC), Vale S.A. (VALE) and Centene Corporation (CNC).
Director of Research
Sheraz Mian
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) All-Weather Strategy to Boost the Top Line
Strength in Diabetes Care Aids Abbott (ABT), FX Woes Stay
AT&T (T) Rides on Healthy Demand, Strategic Acquisition
Featured Reports
Surge in Hybrid Adoption Aids Honda (HMC), Rising Capex Ails
Per the Zacks analyst, the surge in hybrid adoption is boosting Honda's sales. However, rising capex requirements are likely to hurt the company's cash flows.
Investments, Cost Cuts Aid Vale (VALE) Amid Price Volatility
Per the Zacks analyst, investment in growth projects, focus on improving quality and productivity and lowering costs will fuel Vale's growth in the backdrop of volatile iron ore prices.
Strategic Acquisitions and High Premiums Aid Centene (CNC)
Per the Zacks analyst, strategic buyouts are expanding Centene's markets and membership. Additionally, rising commercial premiums are boosting revenue.
Corpay (CPAY) Grows Organically, High Interest Expense Ail
Per the Zacks analyst, Corpay's organic growth is fueled by rise in volume and revenues per transaction in its payment programs. Rising interest expense affects bottom-line.
Robust Growth in Payment Solutions Drives Jack Henry (JKHY)
Per the Zacks Analyst, Jack Henry is benefiting from strength in its card processing solutions, driven by expanding transaction volumes.
High Rates Aid East West Bancorp (EWBC), Asset Quality Ails
Per the Zacks analyst, decent loan demand, relatively high rates and diverse fee income streams will aid East West Bancorp's revenues, while weak asset quality and subdued mortgage business are woes.
Halozyme's (HALO) ENHANZE Drug Delivery Technology Aid Growth
Per the Zacks Analyst, Halozyme's collaboration deals with large pharma companies related to ENHANZE technology, drives revenues growth. Over dependence on partners for revenues remains a concern.
New Upgrades
Focus on Regulated Energy Delivery Aids MDU Resources (MDU)
Per the Zacks analyst, MDU Resources benefits from its focus on regulated energy delivery business. Its investment of $3.06 billion through 2029 should improve the reliability of its services.
EverQuote (EVER) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, consumer traffic, quote request volume and innovative advertiser products and services drive EverQuote revenues. Its strong balance sheet enables it to fulfill debt obligations.
Product Launch & Expansion Efforts Aid JAKKS Pacific (JAKK)
Per the Zacks analyst, JAKKS Pacific benefits from solid consumer demand for licensed toys and core product lines. Also, focus on FOB business model and retail expansion efforts bode well.
New Downgrades
USA Compression (USAC) Faces Flat Horsepower Growth
The Zacks analyst warns that USA Compression's near-term outlook is modest, as horsepower growth lags forecasts and 2025 gains rely heavily on pricing rather than volume expansion.
High Operating Costs are likely to hurt Abercrombie's (ANF) Margin
Per the Zacks analyst, Abercrombie is reeling under rising operating expenses and elevated freight rates. It expects higher operating and freight costs to hurt margins in the first-half of fiscal 2025
High Costs, Stiff Competition Ail Evercore's (EVR) Growth
Per the Zacks analyst, high costs will impede Evercore's bottom-line growth while volatility of institutional AUM will hurt revenues. Stiff competition creates pricing and competitive pressures.
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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