Top Stock Reports for Amazon.com, Home Depot & Cisco Systems

Monday, June 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 Amazon.com, Inc. (AMZN), The Home Depot, Inc. (HD) and Cisco Systems, Inc. (CSCO), as well as two micro-cap stocks United Homes Group, Inc. (UHG) and The Eastern Company (EML). 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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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 Look Toward Sunny Climes

Today's Featured Research Reports

Shares of Amazon.com have gained +12.7% over the past year against the Zacks Internet - Commerce industry’s gain of +18.2%. The company’s top line is driven by steady momentum in Prime and AWS. A strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and expanding content portfolio were beneficial. 

Strengthening relationships with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. Deepening focus on GenAI is a major plus. 

The Zacks analyst expects 2025 net sales to increase 8.5% from 2024. However, Amazon announced mixed guidance for the second quarter. High tariffs imposed by President Trump on goods imported from China have cast uncertainty on retailers such as Amazon. AMZN's free cash flow has decreased significantly.

(You can read the full research report on Amazon.com here >>>)

Home Depot’s shares have outperformed the Zacks Retail - Home Furnishings industry over the past year (+2.2% vs. -2.5%). The company’s performance is supported by strong execution across key growth initiatives. Home Depot continues to benefit from its progress in building an interconnected shopping experience, synergies from the SRS acquisition, expansion of its Pro ecosystem, strategic digital investments, and new store openings. 

These factors contributed to robust top-line growth in the first quarter of fiscal 2025, driven by increased engagement in Spring-related purchases and smaller-scale home improvement projects. 

However, HD faces softer demand in big-ticket discretionary categories, reflecting consumer caution amid high interest rates. Margin pressure, currency headwinds, and macroeconomic uncertainty also remain key risks. HD is also navigating a complex global trade environment, with rising tariffs.

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

Shares of Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+44.7% vs. +43.5%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Increases in recurring revenue bases bodes well for investors. Its Splunk acquisition enhances the recurring revenue base.

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio. 

However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition.

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

United Homes’ shares have underperformed the Zacks Real Estate - Development industry over the past year (-37.4% vs. -5.6%). This microcap company with a market capitalization of $193.97 million is facing challenges which include persistent margin pressure, declining orders and execution risk tied to unproven strategies. Despite this, shares trade at deep discounts, suggesting an upside if execution improves.

Nevertheless, United Homes is executing a strategic transformation focused on margin expansion and operational efficiency. A shift toward refreshed home designs, now yielding 24% gross margins, supports profitability and reduces reliance on discounting. UHG’s pre-sale strategy improves margin visibility and working capital efficiency while rebidding efforts and faster build cycles enhances cost control. 

Though volume and margin remain under pressure amid soft demand, UHG is expanding into high-growth Southeastern markets, with a land-light model supporting disciplined capital returns. The recent debt refinancing improves liquidity and reduces dilution risk.

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

Shares of Eastern have underperformed the Zacks Security and Safety Services industry over the past year (-1.3% vs. +6.3%). This microcap company with market capitalization of $142.05 million has risks like elevated SG&A amid restructuring, cyclical reliance on Class 8 OEMs, weak R&D investment, and recent negative cash flow due to working capital drag. Valuation remains attractive at 0.62X EV/S and 6.88X EV/EBITDA versus peers. 

Nevertheless, Eastern Company’s performance is driven by Velvac’s market share gains and operational enhancements in the Class 8 truck segment, including vertical integration and aftermarket expansion. Despite industry softness, Eastern sustains profitability, posting Q1 2025 adjusted EBITDA of $4.6 million and net income of $2 million, with a gross margin of 22.4%. 

A leaner balance sheet and improved working capital reinforce financial flexibility. Strategic manufacturing footprints across the United States, Mexico, and China support tariff agility and local sourcing trends. Capital returns remain robust with a long-standing dividend and a new buyback program.

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

Other noteworthy reports we are featuring today include Shell plc (SHEL), Quanta Services, Inc. (PWR) and Becton, Dickinson and Co. (BDX).

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

Amazon (AMZN) Rides on Prime & AWS Amid Rising Competition

Home Depot's (HD) Interconnected Strategy to Propel Sales

Cisco (CSCO) Benefits From Strong Security Products Adoption

Featured Reports

Shell (SHEL) to Benefit from LNG Demand Growth
The Zacks analyst believes that Shell's position as a major supplier of LNG should benefit its long-term cash flow growth but is worried over the underperformance of its Renewable segment.

Resilient Business Plans Aid Quanta (PWR), Macro Risks Hurt
Per the Zacks analyst, Quanta is gaining from its effective restructuring efforts and resilient business model. However, ongoing macro headwinds and inflation risks are threats to its prospects.

A Slew of Product Launches Aid BD (BDX) Amid Stiff Competition
The Zacks analyst is upbeat about BD's plethora of product launches in recent times despite operating in an increasingly complex and challenging medical technology marketplace.

Dollar Tree (DLTR) Progresses Well on Store & Other Efforts
Per the Zacks analyst, Dollar Tree is smoothly progressing on optimizing its store portfolio through store openings, renovations, re-banners and closings. This has been aiding its comps for a while.

Customer Growth, Investment Aid Pinnacle West Capital (PNW)
Per the Zacks analyst Pinnacle West is gaining from customer additions, which is creating demand. Investment in infrastructure and energy generation is aiding it to serve customers efficiently.

Solid Growth of Digital Platform Aids Western Union (WU)
Per the Zacks Analyst, Western Union's digital platform delivers accelerated money transfer services amid growing demand. However, high leverage remains a concern.

Tingari Buyout Aids ManpowerGroup (MAN), Competition High
Per the Zacks Analyst, the acquisition of Tingari will support ManpowerGroup's objective to achieve full employment in France. Rising competition is an overhang.

New Upgrades

Rising Defense Budgets, Expansion Efforts Aid Allison (ALSN)
Per the Zacks analyst, Allison is well-positioned to benefit from rising global defense budgets. Expansion of the global service network into Japan and West Africa also augurs well.

Qualys (QLYS) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Qualys benefits from expanding product capabilities, which helps it gain customers. Increasing marketing efforts are also an upside.

Xifaxan Boosts Bausch (BHC), Huge Debt Levels a Concern
Per the Zacks analyst, Bausch maintains momentum on strong growth of Xifaxan and new drug approvals. However, the colossal debt level and delay in separation of eye health business is a headwind. nn

New Downgrades

Akamai (AKAM) Plagued by Demand Softness, Geopolitical Unrest
Per the Zacks analyst, weakness in the delivery segment will likely hinder Akamai's top line. Growing geopolitical unrest in Europe and the Middle East can disrupt its operations.

Mounting Expenses Irk Bruker (BRKR) Amid Tough Competition
The Zacks analyst is worried about Bruker's escalating expenses that are putting pressure on the company's bottom line. Also, industry wide intense competition could adversely affect its performance.

High Costs & Regulatory Scrutiny to Hurt Ares Capital (ARCC)
Per the Zacks analyst, a persistent increase in expenses driven by expansion efforts and excessive regulatory constraints and lower foreign investment income will hurt Ares Capital's financials.

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

Zacks Investment Research