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 JPMorgan Chase & Co. (JPM), Chipotle Mexican Grill, Inc. (CMG) and Workday, Inc. (WDAY), as well as two micro-cap stocks, Kingsway Financial Services Inc. (KFS) and Frequency Electronics, Inc. (FEIM). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
JPMorgan’s shares have outperformed the Zacks Financial – Investment Bank industry over the past two years (+75.4% vs. +51.9%). The Zacks analyst believes that relatively higher interest rates, strategic acquisitions, branch openings and a decent loan balance are expected to support the company. A resurgence in deal-making activities and JPMorgan’s leading position in investment banking (IB) are expected to aid related fee income.
However, the volatile nature of capital markets and high mortgage rates will likely hurt fee income growth.
(You can read the full research report on JPMorgan Chase here >>>)
Chipotle's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+29.0% vs. +5.6%). The Zacks analyst believes that the company is benefiting from its focus on service digitization, new menu offerings and bringing back customer favorites, and new restaurant openings, especially with drive-thru Chipotlanes. Anticipation regarding the augmented make line by Hyphen and Autocado are encouraging for the company’s future sales growth.
Yet increased input costs, along with labor inflation, are concerns.
(You can read the full research report on Chipotle Mexican Grill here >>>)
Shares of Workday have underperformed the Zacks Internet - Software industry over the past two years (+59.0% vs. +133.3%). Per the Zacks analyst, growing competition in the human capital and financial management software market could lead to pricing pressure and impede profits. Continuous investments to achieve long-term growth are hurting its margins in the short term. The lack of geographical diversity remains a concern.
However, solid customer wins across various industries, including education, financials and healthcare are driving growth for the company. A robust cash balance and strong cash flows are tailwinds. Workday is set to be included in the S&P 500 index, a very positive development as it indicates overall stability and growth for the company.
(You can read the full research report on Workday here >>>)
Kingsway Financial’s shares have underperformed the Zacks Insurance – Property and Casualty industry over the last six months (-1.0% vs. +9.5%). The Zacks analyst believes that the company’s high debt levels pose risks. Limited cash flow, sluggish revenue growth and execution challenges in acquisitions add pressure. There are also concerns about the company’s inability to integrate recent acquisitions successfully.
Yet there is optimism around its acquisition-driven strategy. The Extended Warranty segment is highly profitable, provides recurring income and has expanded beyond auto warranties to include heating, ventilation, air conditioning (HVAC) and plumbing.
(You can read the full research report on Kingsway Financial here >>>)
Frequency’s shares have outperformed the Zacks Instruments – Control industry over the past year (+64.6% vs. +5.5%). The Zacks analyst believes that U.S. government programs have been helping the company expand into the fast-growing satellite market, including low-cost synchronization systems for LEO satellites. This positions the company to capitalize on rising demand for smaller, faster-deployed satellites. Additionally, FEI’s quantum technology initiatives, such as magnetometers, provide growth potential.
Risks include backlog decline, negative operating cash flow, rising R&D expenses, and heavy reliance on government contracts, which could introduce revenue volatility.
(You can read the full research report on Frequency Electronics here >>>)
Other noteworthy reports we are featuring today include The Travelers Companies, Inc. (TRV), eBay Inc. (EBAY) and EQT Corp. (EQT).
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 Digitalization & Comps Growth Aid Chipotle (CMG)
Buyouts, Rates & Loans Aid JPMorgan (JPM), Fee Income Ails
Workday (WDAY) Rides on Solid Customer Engagement, AI Focus
Featured Reports
Rezdiffra Sales Boosts Madrigal (MDGL), Narrow Pipeline a Woe Per the Zacks Analyst, the approval of Rezdiffra for NASH is a huge boost for Madrigal ensuring a regular revenue stream. However, the lack of a deep pipeline is a woe.
Investments Aids Edison International (EIX) Amid Poor Liquidity Per the Zacks analyst, Edison International makes systematic investments to strengthen its infrastructure and make it more reliable. Yet its poor current ratio indicates weak liquidity position.
EQT's Premium Gas Drilling Locations in the Appalachian Aid EQT Corporation's untapped premium drilling locations in the core Appalachian Basin secure a robust production outlook. However, rising operating costs concern the Zacks analyst.
G-III Apparel (GIII) Key Brands to Aid Topline Growth Per the Zacks analyst, G-III Apparel's key brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin achieved more than 30% organic growth in the third-quarter fiscal 2025.
Cheniere Energy's (CQP) Strategic LNG Export Facilities Aid Per the Zacks analyst, CQP stands to gain from the LNG demand surge, with long-term contracts ensuring stable cash flows. However, rising debt and volatile gas prices pose risks to margins.
Advanced Offerings Aid Quest Diagnostics (DGX), Debt Mounts The Zacks analyst is impressed with the robust demand for Quest Diagnostics' Advanced Diagnostics offerings, especially for AD Detect blood-based test. Yet, escalating debt levels raise concern.
eBay (EBAY) Rides on Marketplace Growth, Competition A Risk The Zacks analysts believes that growth in eBay's core marketplace business, AI initiatives and mobile strategy are major positives. However, competition in the e-commerce market remains a concern.
New Upgrades
Travelers (TRV) Benefits From Auto & Homeowners Business Per the Zacks analyst, Travelers is set to grow on the continued progress and growth at the profitable agency auto and homeowners business, which in turn boost the revenue growth of the company.
Strong Organic Growth and Partnerships Aid Affirm Holdings (AFRM) Per the Zacks analyst, higher card network revenues and growing servicing income are driving Affirm's revenues. Partnerships and product innovations also bode well.
Footprint Expansion & Loan Growth Aid Huntington (HBAN) Per the Zacks analyst, Huntington's efforts to expand its footprint in key markets, coupled with the rise in loan balances, are expected to drive top-line growth in the near term.
New Downgrades
Escalating Expenses and Competition Hurt Avis Budget (CAR) Per the Zacks analyst, increasing expenses due to fleet cost is a major headwind to Avis Budget's bottom-line. Rising competition from other players is an overhang.
Challenged DIY Segment & Rising Capex Ail Advance Auto (AAP) Per the Zacks analyst, Advance Auto's DIY segment is facing pressure due to financial strain on consumers, leading to fewer discretionary purchases. Rising capex also remains a concern.
America Movil (AMX) Hit By Macro Headwinds And Rising Costs Per the Zacks analyst, America Movil's performance in some regions is hindered by macroeconomic and forex challenges. Rising costs and intense competition pose additional concerns.
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