Top Stock Reports for Netflix, Toyota Motor & Morgan Stanley

Wednesday, June 4, 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 Netflix, Inc. (NFLX), Toyota Motor Corp. (TM) and Morgan Stanley (MS), as well as two micro-cap stocks: Preformed Line Products Co. (PLPC) and Cooper-Standard Holdings Inc. (CPS). 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 >>> ADP Weak 2nd Straight Month: +37K, but Wages Stable

Today's Featured Research Reports

Netflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+36.6% vs. +25.1%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio, and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention. 

NFLX's advertising tier now accounts for more than 55% of new sign-ups in available markets. NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. 

The 2025 content slate, with returning hit shows like Squid Game, Wednesday and Stranger Things, holds promise. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind.

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

Shares of Toyota Motor have declined -9.2% over the past year against the Zacks Automotive - Foreign industry’s decline of -13%. The company is witnessing a surge in hybrid adoption, which is boosting sales. The RAV4 model, with hybrid variants that make up about half of Toyota’s sales, is America's top-selling SUV. Upbeat outlook for fiscal 2026 sales sparks optimism.

Toyota Motor aims to lower hydrogen costs by promoting its use in commercial vehicles. It plans to sell its hydrogen-powered units externally, encouraging broader adoption. Its investor-friendly moves also spark optimism. 

However, material prices and tariffs, along with investments in human resources and growth areas, are expected to take a bite out of operating profits in the current fiscal year. High R&D expenses and capital expenditures are likely to limit the company’s near-term margins and cash flows. The stock warrants a cautious stance now.

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

Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+37.9% vs. +32%). The company’s efforts to become less dependent on capital market-driven revenues, inorganic expansion/strategic alliances and relatively high rates are expected to support the company’s financials. 

Despite near-term headwinds in the investment banking (IB) business, the company will benefit once the macro uncertainty is reduced. The Zacks analyst projects IB fees and total revenues to grow 5% and 3.3%, respectively, this year. However, operating expenses are likely to stay elevated due to business expansion efforts. 

The Zacks analyst projects total non-interest expenses to increase 5.7% this year. The ambiguity on the performance of capital markets is a major near-term concern for the company. Though trading revenues are expected to increase going forward, they are less likely to reach the 2021 level anytime soon.

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

Preformed Line Products’ shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+5.9% vs. -12.8%). This microcap company with a market capitalization of $694.80 million offers compelling upside, driven by robust Energy segment growth (69% of Q1'25 revenue), fueled by transmission investments and strong Americas demand. 

Communications sales rose 15%, led by fiber closure demand amid North American broadband buildouts. Operating leverage and disciplined cost control drove 20% net income growth and 150 bps margin expansion. The company maintains solid liquidity ($54.8 million cash, low debt) and invests in long-term capacity, including a recent South American telecom acquisition. 

However, risks include margin compression in PLP-USA from tariffs and input costs, persistent weakness in Special Industries, inventory buildup straining working capital, and FX-driven geographic profit variability. Structural exposure to commodity inflation and tariff policy adds further downside risk.

(You can read the full research report on Preformed Line Products here >>>)

Shares of Cooper-Standard have outperformed the Zacks Automotive - Original Equipment industry over the past year (+58.8% vs. -9.9%). This microcap company with a market capitalization of $368.69 million offers a compelling long-term investment case, driven by consistent margin expansion and operational efficiency, with the first-quarter 2025 adjusted EBITDA doubling year over year to $58.7 million, despite flat sales. 

Cooper-Standard benefits from rising content per vehicle tied to hybrid/BEV adoption, wherein hybrid systems offer up to 80% CPV growth. The company secured $55 million in first-quarter net new business, mostly from electrified platforms, reinforcing structural growth. Product innovation (e.g., eCoFlow Pump) and strong execution (e.g. 97% green launch scores) enhance OEM trust. 

However, liquidity strain, negative free cash flow and FX/tariff risks persist. Hybrid growth may dilute margins if pricing is pressured, especially with China OEMs. Despite solid fundamentals and innovation leadership, ongoing cash burn and macro exposure remain key risks.

(You can read the full research report on Cooper-Standard here >>>)

Other noteworthy reports we are featuring today include The TJX Companies, Inc. (TJX), Palo Alto Networks, Inc. (PANW) and CVS Health Corp. (CVS)

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

Robust Content Aids Netflix (NFLX) Amid Stiff Competition

Surge in Hybrid Adoption Aids Toyota (TM) Amid Rising Expenses

Rates, IB Business Aid Morgan Stanley (MS), High Costs Ails

Featured Reports

Expansion Efforts Fuel TJX Companies (TJX), High Costs a Woe
Per the Zacks analyst, TJX Companies is on track with store expansion efforts to boost its performance. However, a rise in store wages and payroll costs pose a challenge.

Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Per the Zacks analyst, Palo Alto Networks is gaining from solid contributions of its growth-oriented products including Prisma and Cortex. Increasing marketing efforts are also positive.

CVS Health (CVS) Banks on Health Services, Macro Woes Stay
The Zacks analyst is impressed with CVS Health's Health Services segment benefitting from pharmacy drug mix, growth in specialty and brand inflation. Yet, volatile macroeconomy pose business risks.

Motorola (MSI) Rides on Healthy Demand & Strategic Buyout
Per the Zacks analyst, growing demand for video security and services will likely drive Motorola's top line. The Silvus acquisition will boost prospects in the defense end market.

Waste Connections (WCN) Market Expands Despite Low Liquidity
Per the Zacks analyst, Waste Connections is well-positioned to capitalize on global waste treatment disposal market expansion, boosting the top and bottom lines. Low liquidity is concerning.

Strategic Acquisitions Aid Synchrony (SYF), High Costs Hurt
Per the Zacks analyst, Synchrony's strategic buyouts and renewed partnerships will boost its digital capabilities & diversify the business. However, escalating expenses remain a concern.

Solid end-market demand Aids Jacobs (J), High Costs Ail
Per the Zacks analyst, Jacobs benefits from continued demand and project wins across key areas, along with solid backlog. However, increase direct costs and currency woes are concerns.

New Upgrades

Old Dominion (ODFL) Continues to Benefit From Dividends & Buyback
Per the Zacks Analyst, shareholder-friendly initiatives in the form of dividend payments and share buybacks boost investor confidence and positively impacts the company's bottom line.

Solid Patient Volumes & Buyouts Aid Encompass Health (EHC)
Per the Zacks Analyst, Encompass Health's top line has been fueled by growing patient volumes. Several acquisitions have strengthened its capabilities and expanded geographic footprint.

Strong Sales for Nerlynx Aid Puma Biotech's (PBYI) Revenues
Per the Zacks analyst, Puma Biotech's cancer drug, Nerlynx, is witnessing consistent sales growth in the United States. The acquisition of alisertib also holds promise as it possess huge potential.

New Downgrades

Solid Demand Aid Embraer (ERJ), Supply Chain Issue Woes
Per the Zacks Analyst, solid market demand for its E-Jet family is boosting Embraer's commercial aviation revenues. However, persistent supply chain constraint poses risk for the company.

Decline in Upstream Spending to Hurt Baker Hughes (BKR)
Per the Zacks analyst, Baker Hughes faces revenue pressure in its North America segment due to subdued activity levels and cautious spending by upstream companies.

Campbell's (CPB) Appears Troubled by Elevated Cost Inflation
Per the Zacks analyst, cost inflation hurt Campbell's gross margin. In Q3 adjusted gross profit margin fell 100 basis points to 30.1%, impacted by cost inflation and supply-chain costs among others.

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

Zacks Investment Research