Monday, April 14, 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 Bank of America Corporation (BAC), Chevron Corporation (CVX) and Stryker Corporation (SYK), as well as two micro-cap stocks Value Line, Inc. (VALU) and Sypris Solutions, Inc. (SYPR). 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 >>>

Today's Featured Research Reports

Shares of Bank of America have gained +2.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +20.4%. The company’s volatile nature of the trading business is a major headwind. Despite an impressive performance since 2022, it is expected to normalize going forward. This is likely to hamper fee income growth. 

The Zacks analyst project non-interest income to rise only 3.4% in 2025. Continued investments in the franchise will keep the company’s expenses elevated. We expect total non-interest expenses to rise 3% this year. While high funding costs are still a woe, the company’s net interest income (NII) will be positively impacted by higher rates for longer. 

The Zacks analyst expects NII to record a CAGR of 5.3% over the next three years. Plans to open financial centers in new and existing markets and improve digital capabilities will aid the top line. We project total revenues to grow 4.8% in 2025.

(You can read the full research report on Bank of America here >>>)

Chevron’s shares have declined -6.2% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s decline of -11.9%. The company being a fully integrated energy firm, is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. 

Further, the planned acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana. However, the company is grappling with high sensitivity to oil fluctuations and relatively expensive valuation. 

Another concern is the weak margins on refined products that forced its downstream segment to its first quarterly loss in 4 years. Considering these factors, investors are advised to wait for a better entry point.

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

Shares of Stryker have gained +4.3% over the past year against the Zacks Medical - Products industry’s gain of +5.5%. The company is poised for growth, driven by rising demand for robotic-assisted procedures, hospital capital expenditures and international expansion. The Mako SmartRobotics platform fuels adoption, while acquisitions like Inari Medical and Vertos Medical enhance the portfolio. 

Stryker is actively integrating new technologies such as AI-driven imaging and smart surgical systems to improve patient outcomes and maintain its competitive edge. Pricing improvements and a strong hospital order book support 2025 growth. 

However, foreign exchange volatility and acquisition-related margin pressures may impact earnings. Supply chain disruptions and rising costs could strain profitability. Intensifying competition in robotics and MedTech demands constant innovation. Macroeconomic risks, including potential downturns in healthcare spending and regulatory shifts, add uncertainty.

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

Value Line’s shares have outperformed the Zacks Financial - Investment Management industry over the past year (+10% vs. +6.4%). This microcap company with market capitalization of $370.23 million have robust cash generation, with cash balances rising to $27.1 million from $6.1 million YoY, enhances liquidity and supports dividends, buybacks, and growth investments. EAM Trust income surged 47.7% to $13.8 million, driven by AUM growth to $5 billion, providing a rising, diversified passive income stream. 

The company maintains disciplined capital returns, paying $0.90/share in dividends and repurchasing shares, with $0.9 million authorization remaining. Portfolio gains doubled to $3.6 million, bolstering earnings. Strong branding and diversified offerings serve both retail and institutional clients, supporting market position. 

However, core publishing revenue declined to $26.7 million, and customer concentration (30% from one client) heightens risk. Operating costs and taxes rose, further pressuring margins, while limited international presence (~2% of revenues) increases vulnerability to U.S. market shifts.

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

Shares of Sypris Solutions have gained +3.6% over the past year against the Zacks Electronics - Miscellaneous Services industry’s gain of +36.3%. This microcap company with market capitalization of $36.37 million benefits from an extended long-term supply agreement with a global OEM, securing stable revenues as a sole-source supplier of Ultra Axle Shafts. 

Sypris Solutions’ diversified presence across automotive, energy, and industrial markets reduces risk and positions it to capitalize on growth trends in heavy-duty vehicles and energy infrastructure. Sypris Solutions is also aligned with growth in aerospace and defense electronics, leveraging its capabilities in high-precision components to meet rising demand. Expansion into the Asia-Pacific region aligns with high-growth markets, leveraging regional investments in defense and infrastructure. 

However, liquidity challenges constrain financial flexibility. Rising costs and reliance on cyclical markets such as heavy vehicles and oil and gas exacerbate margin sensitivity. Competitive pressures in aerospace further heighten vulnerability.

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

Other noteworthy reports we are featuring today include Pfizer Inc. (PFE), Ormat Technologies, Inc. (ORA) and ONEOK, Inc. (OKE).

Director of Research

Sheraz Mian

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

Branch Openings, High Rates Aid BofA (BAC), Fee Income Ails

Permian Strength Supports Chevron's (CVX) Production Growth

Diversified Product Portfolio Drives Stryker's (SYK) Prospects

Featured Reports

Pfizer's (PFE) New Products Can Drive Sales Growth in 2025
Pfizer's non-COVID revenues improved in 2024, driven by its key drugs like Vyndaqel, new launches and newly acquired products from Seagen. The trend should continue in 2025, per the Zacks analyst.

Investments Aid Ormat (ORA), Weak Solvency Pose Threat
Per the Zacks analyst, Ormat Technologies' investment in enhancing manufacturing capacity should boost growth. Yet, its weak solvency position threatens the stock's ability to pay off its debt.

Midstream Assets & Higher Fee-Based Earnings Aid ONEOK (OKE)
Per the Zacks analyst, ONEOK is set to benefit from fee-based earnings and midstream assets located in productive regions. Investments made to expand pipelines will drive its performance.

Broadridge (BR) Gains From Itiviti Buyout, Competition High
Per the Zacks analyst, the Itiviti acquisition has boosted Broadridge's global technology and operations segment. High competition from other players is an overhang.

Acquisition of Edmunds Aids CarMax (KMX), High Debt Ails
Per the Zacks analyst, the acquisition of Edmunds has bolstered CarMax's position in the used auto market. However, its high long-term debt-to-capital ratio remains a concern.

Watts Water (WTS) Gains on Acquisitions Amid Europe Weakness
Per the Zacks analyst, Watts Water gains from solid acquisitions, cost-cutting efforts and a strong balance sheet, though fewer shipping days and Europe weakness remain concerns.

Solid Unit Expansion Aid Choice Hotels (CHH), Macro Woes Ail
Per the Zacks analyst, Choice Hotels benefits from its unit growth strategy, hotel conversions and franchise business. However, uncertain macroeconomic environments are a concern.

New Upgrades

Starz Subscriber Growth Aids Lionsgate's (LGF.A) Prospects
Per the Zacks analyst, increased premium programming, along with higher Starz subscriber growth, is likely to aid Lionsgate's top line growth.

EverQuote (EVER) Boasts Revenue Growth, Solid Balance Sheet
Per the Zacks analyst, consumer traffic, quote request volume and innovative advertiser products and services drive EverQuote revenues. Its strong balance sheet enables it to fulfill debt obligations.

Acquisition of Nissens Boosts Standard Motor (SMP) Prospects
Per the Zacks analyst, the buyout of Nissens has helped Standard Motor expand its geographic presence and establish a significant global growth platform, which will boost its top-line growth in 2025.

New Downgrades

Campbell's (CPB) Gross Margins Hurt by Cost Inflation
Per the Zacks analyst, cost inflation hurt Campbell's gross margin. In the second quarter fiscal 2025, adjusted gross profit margin fell 100 basis points, hit by cost inflation and supply-chain costs.

Rising Expenses, Low Liquidity Hurt Carlyle's (CG) Growth
Per the Zacks analyst, Carlyle's rising cost base will likely hurt bottom-line growth. Also, with limited liquidity, the company might not be able to meet its near-term debt obligations.

Macroeconomic Pressures, Fierce Rivalry Ails Illumina (ILMN)
The Zacks analyst is concerned with Illumina's robust market opportunity in China taking a hit after MOFCOM bans imports of its NGS sequencers. Intense competitive landscape adds to the worry.

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

Bank of America Corporation (BAC) : Free Stock Analysis Report

Chevron Corporation (CVX) : Free Stock Analysis Report

Pfizer Inc. (PFE) : Free Stock Analysis Report

Stryker Corporation (SYK) : Free Stock Analysis Report

ONEOK, Inc. (OKE) : Free Stock Analysis Report

Ormat Technologies, Inc. (ORA) : Free Stock Analysis Report

Sypris Solutions, Inc. (SYPR) : Free Stock Analysis Report

Value Line, Inc. (VALU): Free Stock Analysis Report

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

Zacks Investment Research