In This Article:
Friday, April 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 T-Mobile US, Inc. (TMUS), Salesforce, Inc. (CRM) and Alibaba Group Holding Ltd. (BABA), as well as a micro-cap stock Old Point Financial Corp. (OPOF). 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 >>> U.S./China Trade at +125% Standoff, PPI Slides, Big Banks Report Q1
Today's Featured Research Reports
T-Mobile’s shares have outperformed the Zacks Wireless National industry over the past year (+62.2% vs. +45.5%). The company is gaining from healthy growth in service revenues driven by industry-leading postpaid net customer addition. In 2024, the company added 6.1 million postpaid net customers while postpaid net account additions were 1.1 million, both metrics being the best in the industry.
Solid growth in free cash flow accentuates efficient capital management and implies that the company is well-positioned to invest in growth initiatives and pay debt and dividends. Strategic acquisitions to extend portfolio offerings are a positive.
However, the highly competitive and saturated nature of the U.S. wireless market could adversely affect its financial results. Its strategy of introducing several promotional activities to outperform competition strains margin. Declining prepaid ARPU is a concern. We are reiterating our Neutral recommendation.
(You can read the full research report on T-Mobile here >>>)
Shares of Salesforce have underperformed the Zacks Computer - Software industry over the past year (-12.8% vs. -6%). The company is facing stiff competition and unfavorable currency fluctuations, which are concerning. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.
Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver.
The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams. Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. The Zacks analyst estimates suggest that Salesforce revenues are expected to witness a CAGR of 8.9% through fiscal 2025-2028.
(You can read the full research report on Salesforce here >>>)
Alibaba’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+49.3% vs. +4.8%). The company’s recent performance 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.
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 Old Point Financial have outperformed the Zacks Banks - Southeast industry over the past year (+158.2% vs. +5.1%). This microcap company with market capitalization of $188.30 million has recorded 2024 earnings and projected 2025 EPS of $2.02 which support valuation upside at 12.5X forward P/E, fueled by rising net interest income, lower provisions and tight cost control.
Efficiency gains are evident with a 2% drop in noninterest expenses and an improved efficiency ratio to 78%, lifting ROAE to 9.96% and ROAA to 0.77%. Steady dividends offer reliable income, while Old Point’s regional franchise in Hampton Roads and Richmond drives customer engagement and fee income. The net interest margin rose to 3.53%, bolstering core earnings.
However, a 6% loan book contraction and rising nonperforming assets (to 0.19% of assets) pose risks to revenues and asset quality. Declining noninterest income (-5%) and stiff competition could pressure earnings diversity and margins, potentially limiting growth and profitability.
(You can read the full research report on Old Point Financial here >>>)
Other noteworthy reports we are featuring today include ICICI Bank Ltd. (IBN), Waste Management, Inc. (WM) and Coinbase Global, Inc. (COIN).
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>>>