Tuesday, April 8, 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 Walmart Inc. (WMT), The Coca-Cola Co. (KO) and HSBC Holdings plc (HSBC), as well a micro-cap stock Friedman Industries Inc. Common Stock (FRD). 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 >>> Pre-Markets Rocket Up on Overseas Optimism

Today's Featured Research Reports

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+41.8% vs. +40.1%). The company benefits from its diverse business model that spans multiple segments, channels and formats. The company's strong omnichannel strategy has boosted traffic across physical stores and digital platforms. 

Walmart's emphasis on improving delivery services has been successful, contributing to steady grocery market share gains. Upsides like these, along with growth in the advertising business, fueled fourth-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year, and e-commerce sales surged. 

However, Walmart’s profitability is being impacted by rising selling, general and administrative (SG&A) expenses, thanks to tech investments, higher wages and marketing. Also, volatile currency fluctuations are expected to further pressure sales in the upcoming fiscal year.

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

Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past year (+17.9% vs. +1.3%). The company has experienced positive business trends, as evident by its strong track record of beating expectations. In fourth-quarter 2024, the company exceeded sales and earnings estimates for the eighth consecutive quarter, with earnings showing year-over-year improvement. 

Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. Coca-Cola's all-weather strategy -- combining marketing, innovation, and revenue growth management -- supports its vision of a total beverage company and is expected to drive revenue growth in 2025. 

Coca-Cola has provided an optimistic view for 2025. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.

(You can read the full research report on Coca-Cola here >>>)

HSBC’s shares have outperformed the Zacks Banks - Foreign industry over the past year (+28.5% vs. +8.3%). The company’s strong capital position, relatively high interest rates, global network and business simplification initiatives will keep supporting the company’s financials. As part of its Asia pivot strategy, it is moving away from less profitable markets and has announced the sale of businesses in Germany and South Africa.

HSBC has exited retail operations in the U.S., Canada, France, New Zealand, Greece, Russia, Argentina and Armenia. While efforts to strengthen its market share in Asia will support financials, they will likely lead to an increase in expenses. 

For 2025, the company expects operating expenses to increase 3%. Additionally, the company’s subdued revenue performance -- in light of weaker loan demand amid a challenging macroeconomic backdrop -- is a concern.

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

Shares of Friedman Industries have underperformed the Zacks Metal Products - Procurement and Fabrication industry over the past year (-24.6% vs. -1.4%). This microcap company with a market capitalization of $97.38 million has seen fiscal third-quarter sales decline 18.9% year over year. The tubular segment remains weak and high inventory levels pose risks amid steel price volatility. 

Rising costs and debt burdens could pressure profitability despite hedging strategies and operational efficiencies. Nevertheless, Friedman Industries' sales backlog grew 11% year over year in third-quarter fiscal 2025, signaling stronger demand and potential revenue recovery. 

Post-election stability has driven increased order activity, with fiscal fourth-quarter sales and margin expansion expected as hot-rolled coil (HRC) prices rebound. Debt fell 9% to $32.5 million, with $99.2 million in available credit supporting operations. Industry tailwinds include a projected increase in HRC prices and rising infrastructure and manufacturing investments. 

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

Other noteworthy reports we are featuring today include TotalEnergies SE (TTE), Marsh & McLennan Companies, Inc. (MMC) and Petróleo Brasileiro S.A. - Petrobras (PBR).

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

Walmart (WMT) Benefits from Impressive E-Commerce Operations

Coca-Cola's (KO) All-Weather Strategy to Boost the Top Line

Focus in Asia Region, Rates Aid HSBC (HSBC), High Costs Ails

Featured Reports

Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies' presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.

Strategic Buyouts Aid Marsh & McLennan (MMC), Expenses Hurt
Per the Zacks analyst, numerous acquisitions help Marsh & McLennan expand geographically, boost current segments and develop new businesses. However, rising expenses remain a concern.

Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves
The Zacks analyst believes Petrobras' position in Brazil's pre-salt reserves should improve its earnings outlook, but its performance is still highly impacted by global oil price changes.

Infrastructure Investments, Clean Assets Aid NiSource (NI)
Per the Zacks analyst, NiSource' investment of around $19.4 billion through 2029, will strengthen its infrastructure, and adding more clean assets in generation portfolio will drive its performance.

Hungry for MORE strategy Aids Domino's (DPZ), High Costs Ail
Per the Zacks analyst, Domino's benefits from focus on the Hungry for MORE strategy, digital innovation, strategic partnerships and unit expansions. However, high costs are a concern.

Strong Demand for Products Aids The Cooper Companies (COO)
Per the Zacks analyst, The Cooper Companies witnessed strong demand for its products across several segments during the first quarter. The trend is likely to continue boosting the company's prospect.

Cost Cuts, Acquisitions to Aid Eastman Chemical (EMN)
While the company faces headwinds from lower demand across certain markets, it will gain from cost-cutting actions and synergies of acquisitions, per the Zacks analyst.

New Upgrades

Ubiquiti (UI) Rides on Strong Demand in Enterprise Technology
Per the Zacks analyst, healthy traction in the Enterprise Technology segment driven by the growing proliferation of IoT devices across industries will likely drive Ubiquiti's top line.

Tapestry's (TPR) Strong Digital Endeavors to Boost Sales
Per the Zacks analyst, Tapestry has been directing resources toward expanding digital and data analytics capabilities. During the second quarter digital sales increased in high-single digits rates.

TripAdvisor (TRIP) Benefits From Tripadvisor Core Strength
Per the Zacks analyst, growing momentum in Tripadvisor-branded display and platform, and Tripadvisor experiences is aiding the company's Tripadvisor Core segment.

New Downgrades

Sarepta's (SRPT) Dependence on DMD Gene Therapy Sales A Woe
The Zacks Analyst is concerned with the negative sentiments around Sarepta's stock due to the reported death of a patient after infusion with Elevidys. This is likely to weigh on the top line.

Knight-Swift (KNX) Grapples With Rising Operating Expenses
Per the Zacks Analyst, high costs related to driver wages, equipment, maintenance, fuel and other expenses are increasing Knight-Swift's operating expenses. This is likely to weigh on the bottom line.

Volatile Capital Markets, High Costs Hurt Jefferies (JEF)
Per the Zacks analyst, heightened volatility in the capital markets because of ongoing economic and policy concerns hurt Jefferies' top line growth. Also, a steady rise in expenses is a headwind.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CocaCola Company (The) (KO) : Free Stock Analysis Report

Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report

Walmart Inc. (WMT) : Free Stock Analysis Report

Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report

HSBC Holdings plc (HSBC) : Free Stock Analysis Report

Friedman Industries Inc. (FRD): Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

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

Zacks Investment Research