Thursday, April 17, 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 Apple Inc. (AAPL), Philip Morris International Inc. (PM) and Sony Group Corp. (SONY), as well as a micro-cap stock Vaso Corp. (VASO). 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-Market Drama Shifts: Dow Lower on UNH Miss

Today's Featured Research Reports

Apple’s shares have outperformed the Zacks Computer - Micro Computers industry over the past year (+16.8% vs. +15.2%). The company is benefiting from strong growth in Services revenues. It now has more than 1 billion paid subscribers across its Services portfolio, more than double what it had four years ago.

The expanding content portfolio of Apple TV+ and Apple Arcade helped in driving subscriber growth. Apple expects the March quarter’s (second-quarter fiscal 2025) revenues to grow low to mid-single digits on a year-over-year basis. For the Services segment, it expects a low double-digit growth rate.

Introduction of Apple Intelligence, an advanced personal intelligence system seamlessly integrated into iOS 18, iPadOS 18 and macOS Sequoia will help Apple shares to push higher. However, weakness in iPhone sales particularly in China is a concern. Increasing regulatory headwinds is a headwind.

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

Shares of Philip Morris have outperformed the Zacks Tobacco industry over the past year (+83.9% vs. +71.7%). The company’s strong pricing power and an expanding smoke-free product portfolio have been driving the company. For the fourth quarter of 2024, net revenues increased 7.3%, driven by higher combustible tobacco pricing and increased smoke-free product volumes.

Philip Morris has been making significant progress with its smoke-free transition, with products like IQOS and ZYN contributing to strong performance. In fact, Philip Morris aims to become substantially smoke-free by 2030.

However, foreign currency fluctuations are impacting earnings, with a projected 22-cent-per-share currency headwind in 2025. Despite regulatory challenges, including increased tobacco restrictions, the company’s strategic cost-saving measures and operational efficiency continue to drive profitability.

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

Sony’s shares have outperformed the Zacks Audio Video Production industry over the past year (+42.6% vs. +36.9%). The company is poised to grow on strength across Game & Network Services (G&NS), Music and Financial Services amid woes in the Entertainment, Technology & Services (ET&S) unit. Financial Services revenues are benefiting from sales growth at Sony Life and higher investment gains from market volatility.

The Music unit’s sales are backed by higher revenues from streaming services in Recorded Music and Music Publishing. Solid hardware and non-first-party game software sales and forex impacts are fueling the GN&S unit. Driven by momentum in Financial Services and G&NS units, it has raised its fiscal 2024 sales view to ¥13,200 billion from ¥12,710 billion.

However, a fall in television and smartphone sales due to lower unit shipments hurt ET&S. Soft sales of image sensors for mobile products and lower unit sales are likely to weigh on the I&SS unit.

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

Shares of Vaso have outperformed the Zacks Medical - Instruments industry over the year-to-date period (+10.4% vs. -12.6%). This microcap company with market capitalization of $23.26 million have diversified model across IT services, professional sales and medical devices which drove 2024 revenues by 7.1% to $86.8 million, with IT and GEHC sales growing 6.4% and 9.3%, respectively.

Strong IT and sales momentum, a $34.9 million deferred revenue base and seasonal fourth-quarter 2024 strength enhance visibility. Despite 80.2% lower net income, Vaso remains debt-free with $26.3 million in cash and $3.3 million in operating cash flow, enabling funding flexibility despite SG&A growth and a failed merger.

Challenges include cost inflation, overreliance on GEHC (47.6% of revenue), SaaS weakness and margin pressure. While investments aim to scale operations, profitability deterioration and M&A missteps pose execution risks amid rising competition in digital health. Vaso shares also suggest potential upside for value-focused investors.

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

Other noteworthy reports we are featuring today include 3M Co. (MMM), The Travelers Companies, Inc. (TRV) and Expand Energy Corp. (EXE).

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

Strong Services to Aid Apple (AAPL) Amid Tariff Headwinds

Phillip Morris (PM) Gains From Smoke-Free Product Category

Strength in Games & Network, Music Segments Benefits SONY

Featured Reports

Safety and Industrial Unit Drives 3M (MMM), High Debt Ails
Per the Zacks analyst, 3M will benefit from robust momentum in the Safety & Industrial unit, led by strength in roofing granules and electrical markets. However, high debt level remains a concern.

Strong Renewal Rate Change, Retention Aid Travelers (TRV)
Per the Zacks analyst, Travelers is set to gain from continued strong renewal rate change and retention and increase in new business. Yet, exposure to cat loss inducing underwriting volatility ails.

Loans, Lower Rates to Aid OneMain Holdings (OMF), Costs High
Per the Zacks analyst, loan growth, lower interest rates, diverse offerings, and decent balance sheet will likely aid OneMain Holdings' financials. Yet, high costs and weak asset quality are woes.

Axsome's (AXSM) Marketed Drugs Drive Growth Amid Competition
Per the Zacks analyst, Axsome's lead drug, Auvelity, approved for treating major depressive disorder is driving sales. The addition of Sunosi bodes well too. However, stiff competition remains a woe

Solid Insurance in Force, Persistency Drive Radian (RDN)
Per the Zacks analyst, Radian is set to grow on solid persistency, rise in new mortgage insurance business driving insurance in force and lower level of claims paid. However, escalating expense ails.

Strategic Investments, Rising Customer Base Aid Spire (SR)
Per the Zacks analyst, Spire expects 10-year capital investment to be $7.4 billion. Consistent increase in the average number of gas utility customer volumes should boost performance.

Global Reach Aids Inspire Medical (INSP) in Stiff Competition
The Zacks analyst is upbeat about Inspire Medical's focus on expanding the size and geographic scope of direct sales organization despite its operation in a highly competitive market.

New Upgrades

Expand Energy (EXE) to Gain from Cost Synergies Post Merger
The Zacks analyst likes Expand Energy's position as the largest natural gas producer in the U.S. following the Chesapeake-Southwestern merger unlocking cost synergies of $500M by 2026

GameStop (GME) Bets on NFTs and Collectibles for Growth
Per the Zacks analyst, GameStop is betting on blockchain technology, introducing NFTs and digital collectibles to attract gaming enthusiasts and unlock new growth avenues.

Solid Subscription & Political Ad Revenues Aid TEGNA (TGNA)
Per the Zacks analyst, TEGNA is benefiting from continued spike in subscription revenues and strong spending on political advertisements.

New Downgrades

Chevron Hurt by U.S. Government Sanctions on Venezuela
The Zacks analyst believes that Chevron's possible exit from Venezuela could weigh on the company's long-term cash flows and supply-chain stability.

United Airlines Grapples With Weak Demand & Macroeconomic Uncertainty
Per the Zacks Analyst, UAL is hurt by tariff-induced economic uncertainties & the resultant reduction in consumer and corporate confidence, which is leading to a slowdown in domestic air travel demand

High Mortgage Rates & Ongoing Macro Risks Hurt Lennar (LEN)
Per the Zacks analyst, Lennar's prospects are hurting from the ongoing housing market uncertainties due to a still-high mortgage rate scenario and elevated home building and other related costs.

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

Apple Inc. (AAPL) : Free Stock Analysis Report

3M Company (MMM) : Free Stock Analysis Report

Philip Morris International Inc. (PM) : Free Stock Analysis Report

The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report

Vaso Corporation (VASO): Free Stock Analysis Report

Sony Corporation (SONY) : Free Stock Analysis Report

Expand Energy Corporation (EXE) : Free Stock Analysis Report

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

Zacks Investment Research