Top Analyst Reports for Alphabet, Bank of America & Roche

Wednesday, May 28, 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 Alphabet Inc. (GOOGL), Bank of America Corp. (BAC) and Roche Holding AG (RHHBY), as well as two micro-cap stocks Village Super Market, Inc. (VLGEA) and Aware, Inc. (AWRE). 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 Mixed Ahead of Last Big Q1 Earnings Day

Today's Featured Research Reports

Alphabet’s shares have outperformed the Zacks Internet - Services industry over the past six months (+3.5% vs. +2.1%). The company is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure, enterprise AI platform Vertex and strong adoption of Generative AI solutions.

Alphabet expects capital expenditures in 2025 to be relatively higher than in 2024, aimed at building technical infrastructure, primarily for servers, followed by data centers and networking. Its dominant position in the search engine market is a strong growth driver. In first-quarter 2025, GOOGL saw continued double-digit revenue growth in Search.

Alphabet surpassed 270 million paid subscriptions with YouTube and Google One as key drivers. However, increasing litigation issues are a concern. Intensifying competition from Microsoft and Amazon in cloud computing is a headwind.

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

Shares of Bank of America have gained +20.1% over the past year against the Zacks Financial - Investment Bank industry’s gain of +32.6%. The company’s first-quarter 2025 results reflected higher provisions. The volatile nature of the trading business is a concern. Despite an impressive performance since 2022, it is expected to normalize going forward, thus hurting fee income growth.

The Zacks analyst expects projected non-interest income to rise only 4.5% in 2025. Steady investments in the franchise will keep operating expenses elevated. We expect total non-interest expenses to rise 3% this year.

While high funding costs are still a woe, the company’s net interest income (NII) will be positively impacted by higher rates. The Zacks analyst expects NII to record a CAGR of 5.3% by 2027. Plans to open financial centers in new and existing markets and improve digital capabilities will aid the top line. We project total revenues to grow 5.8% in 2025.

(You can read the full research report on Bank of America here >>>)

Roche’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+29.1% vs. -12.1%). The company’s performance in the first quarter of 2025 was good as high demand for key drugs offset the decline in sales of legacy drugs. Growth in demand for Vabysmo, Phesgo, Ocrevus and Hemlibra boosted the top line.

Vabysmo has put up a stellar performance against Eylea. Roche is also looking to diversify its portfolio in the wake of declining sales from legacy drugs (Avastin, Herceptin, MabThera and Actemra) due to competition from biosimilars. The recent collaboration with Zealand Pharma for its obesity candidate will expand its pipeline in the field of cardiovascular, renal and metabolic diseases.

Higher demand for immunodiagnostic, pathology and molecular boosts the diagnostics business. However, recent pipeline setbacks are concerning. Roche has also made a late entry into the lucrative obesity space.

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

Shares of Village Super Market have gained +30.2% over the past year against the Zacks Retail - Supermarkets industry’s gain of +50.6%. This microcap company with market capitalization of $558.90 million is expanding strategically through store replacements and market densification, exemplified by its new 83,000 sq. ft. Old Bridge store. Its multi-format model targets varied demographics, blending value and specialization.

Gross margin rose 23 bps to 28.7%, aided by better departmental performance, higher Wakefern patronage dividends, and cost controls. Strong operating cash flow supports $75 million in FY25 capex and stable dividends without external financing. Debt declined to $62.7 million, with $133.9 million in cash and favorable credit terms enhancing liquidity.

However, earnings face pressure from lower Wakefern note yields, rising digital order fulfillment costs, and fierce price-based competition. Reliance on Wakefern for sourcing and services, as well as underfunded multi-employer pension plans, introduces structural risks to Village’s cost base and long-term financial flexibility.

(You can read the full research report on Village Super Market here >>>)

Aware’s shares have gained +1.2% over the past six months against the Zacks Internet - Software and Services industry’s gain of +26%. This microcap company with market capitalization of $34.80 million is targeting a large, underserved market by scaling its modular biometric platform and SaaS offerings like AwareID for high-assurance identity use cases across government and enterprise sectors.

Engagements with U.S. federal agencies reflect rising relevance in digital infrastructure. Though recurring revenues comprised 74.4% of first-quarter 2025 sales, overall revenue fell 18.4%, and SaaS traction remains underwhelming. Management's pivot to a verticalized go-to-market model and new leadership aims to drive commercial wins, but execution risks persist amid rising costs and weak license sales.

R&D cuts and limited financial flexibility may hinder innovation and scalability. Despite trading at a deep discount to peers reflecting ongoing volatility, near-term visibility remains low without stronger SaaS adoption and commercial deal flow.

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

Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), Constellation Energy Corp. (CEG) and Cheniere Energy Partners, L.P. (CQP).

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

Alphabet (GOOGL) Benefits From Cloud & Search Initiatives

Branch Openings, High Rates Aid BofA (BAC), Fee Income Ails

Vabysmo, Phesgo Fuel Roche (RHHBY), Pipeline Setbacks a Woe

Featured Reports

Intercontinental (ICE) Banks on Acquisitions Amid High Costs
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies, which in turn, position it well for growth. However, rising expenses weigh on margins.

Strong Nuclear Fleet, Investments Aid Constellation (CEG)
Per the Zacks analyst Constellation Energy's (CEG) efficient and reliable nuclear fleet having a high capacity factor and strategic investment plans will continue to boost its performance.

LNG Demand Growth Boosts Cheniere Partners' (CQP) Outlook
Per the Zacks analyst, CQP is poised to gain from increased LNG exports through its strategic facilities to capitalize on the shift from coal and oil as global demand for cleaner energy rises.

Insulet (PODD) Fortifies Market Lead with Omnipod Innovation
The Zacks analyst is impressed with Insulet driving growth with Omnipod Discover, expanded sensor integrations and type 2 label expansion. Yet macroeconomic risks and rising competition ail.

Healthy Demand For Rental Units to Aid UDR Amid High Supply
Per the Zacks Analyst, UDR is set to gain from healthy demand for rental units and low resident turnover aiding occupancy and rental growth. Yet, elevated supply in some markets and debt burden ail.

AI Tailwinds & Cost Savings Aid Lumen (LUMN), Rivalry Ails
Per the Zacks analyst, opportunities arising from the proliferation of AI, which is fueling demand for its PCF solutions, bode well for Lumen. Stiff rivalry in AI and telecom hurt its prospects.

Perrigo's (PRGO) Focus on Self-Care Biz Encouraging
Despite macroeconomic pressures, the Zacks Analyst believes Perrigo's restructuring and divestitures of low-margin units are smart moves to boost efficiency in its consumer self-care focus.

New Upgrades

Paycom Software (PAYC) Benefits From Growing Customer Base
Per the Zacks Analyst, Paycom Software is benefiting from its differentiated employee strategy, measurement capabilities and comprehensive product offerings that are helping it win new customers.

Solid Comps Run to Fuel Urban Outfitters' (URBN) Top Line
Per the Zacks analyst, Urban Outfitters' commitment to improving comps, supported by product expansion and effective marketing, bodes well. Comps in retail segment rose 4.8% during Q1 fiscal 2026.

Integer Holdings (ITGR) Gains on Strong R&D, MedTech Growth
Per the Zacks Analyst, Integer Holdings' strong research and development focus, solid MedTech presence, and expanding product pipeline position it well for sustained long-term growth.

New Downgrades

High Expenses & Rising Competition Hurt Booz Allen (BAH)
Per the Zacks analyst, investments in scaling operations and expanding the workforce to meet growing demand are hiking Booz Allen's operating expenses. Rising competition is another overhang.

Escalating Costs & Operating Expenses Hurts Cimpress (CMPR)
Per the Zacks analyst, Cimpress' revenue growth and operational efficiencies are being dampened by a steep rise in operating costs and expenses, which is hurting the company's bottom line.

Lower Sales Volume & Macro Woes Hurt Boise Cascade (BCC)
Per the Zacks analyst, Boise Cascade business is being hurt by lower selling prices and sales volumes. Also, the affordability concerns in the housing market & high mortgage rates are added headwinds.

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

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