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Tuesday, March 11, 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 Exxon Mobil Corp. (XOM), Netflix, Inc. (NFLX) and Alibaba Group Holding Ltd. (BABA), as well as a micro-cap stock CSP Inc. (CSPI). 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 Melting Away Early-Morning Gains
Today's Featured Research Reports
Exxon Mobil’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+6.7% vs. +5.4%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019.
The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience. With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Expansion in low-carbon tech, including Baytown's hydrogen facility, positions it for future growth.
Yet, refining margins are pressured due to global capacity increases, with refining profits softening. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped in the fourth quarter.
(You can read the full research report on Exxon Mobil here >>>)
Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+41.8% vs. +38%). 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.
The launch of a first-party ad tech platform in Canada and ones in the remaining ad countries in 2025 signals Netflix's commitment to maximizing this new revenue stream, with ad revenues expected to roughly double year-over-year. Raised revenue guidance for 2025 between $43.5-$44.5 billion reflects improved business fundamentals.
However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind. NFLX’s leveraged balance sheet and a higher streaming obligation are concerns.
(You can read the full research report on Netflix here >>>)
Alibaba’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+78.1% vs. +18.1%). The company’s Q3 fiscal 2025 results benefited from the monetization of Taobao and Tmall Group, cloud businesses and AI-integrated products. BABA is riding on strong momentum in its international commerce retail business, driven by strength in AliExpress’ Choice.
Growing international commerce wholesale business, thanks to strength in cross-border-related value-added services, is a tailwind. Expanding China's wholesale commerce business is a positive. Robust local consumer services and Cainiao logistics services are further driving top-line growth. Shares of the company have outperformed the industry in the past year.
However, non-GAAP earnings of $2.93 per ADS fell short of estimates, suggesting a complex growth narrative. Current market valuations, with the stock trading at multi-year highs, suggest limited immediate upside potential.
(You can read the full research report on Alibaba here >>>)
Shares of CSP have underperformed the Zacks Computer - Integrated Systems industry over the past year (-23.5% vs. -18.6%). This microcap company with market capitalization of $151.07 million is facing risks which include weak growth in the high-performance products segment, dependence on low-margin IT solutions and continued operating losses despite revenue growth.
High stock-based compensation, customer concentration risks and limited international reach add uncertainty. Investors must weigh CSP’s cybersecurity potential against its ongoing profitability challenges. Nevertheless, CSP is transitioning toward high-margin, recurring revenue streams, driven by strong service revenue growth and increased demand for its cybersecurity solutions.
The company’s AZT PROTECT platform is gaining traction in critical infrastructure sectors, supported by key partnerships and a growing patent portfolio. A strong balance sheet with no long-term debt enables strategic investments, while its alliance with Rockwell Automation accelerates market expansion.
(You can read the full research report on CSP here >>>)
Other noteworthy reports we are featuring today include Discover Financial Services (DFS), Veeva Systems Inc. (VEEV) and Evergy, Inc. (EVRG).
Mark Vickery
Senior Editor