Chicago, IL – January 21, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, The Home Depot, Inc. HD, RTX Corp. RTX, Applied Materials, Inc. AMAT, Kewaunee Scientific Corp. KEQU and AXIL Brands, Inc. AXIL.
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 The Home Depot, Inc., RTX Corp. and Applied Materials, Inc., as well as two micro-cap stocks Kewaunee Scientific Corp. and AXIL Brands, Inc. 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 >>>
Home Depot’s shares have outperformed the Zacks Retail - Home Furnishings industry over the past six months (+17.8% vs. +12.5%). The company’s recovery in top-line trends is supported by sales from the SRS acquisition. The company delivered better-than-expected sales and EPS in Q3 of fiscal 2024, with year-over-year sales growth fueled by gains in certain seasonal categories due to favorable weather and hurricane-related demand.
Home Depot gains from its “One Home Depot” investment plan focused on expanding supply chain facilities, enhancing technology and improving the digital experience. HD is also advancing efforts to build a robust Pro ecosystem. HD raised its sales and EPS view for fiscal 2024, citing strong third-quarter results and projected hurricane-related demand in Q4.
However, comparable sales and EPS remain impacted by higher interest rates and ongoing macroeconomic uncertainties.
(You can read the full research report on Home Depot here >>>)
Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+45.4% vs. -1.3%). The company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. It won several notable defense awards during the third quarter.
A steadily improving commercial air traffic has been bolstering commercial OEM as well as commercial aftermarket sales for the company. RTX holds a solid financial position, which enables it to make successful share repurchases.
However, rising crude price tends to put cost pressures on airlines and may affect the operating results of commercial OEM producers like RTX. The company may also be affected if China enforces its announced sanctions against its missile and defense unit. Supply-chain challenges also pose a threat to RTX’s growth.
(You can read the full research report on RTX here >>>)
Applied Materials’ shares have gained +25.9% over the past year against the Zacks Electronics - Semiconductors industry’s gain of +62.3%. The company is benefiting from strength in the Applied Global Services segment, owing to the growing adoption of the 200-mm system. Solid momentum in the subscription and display businesses is a plus.
Growing Semiconductor Systems revenues owing to rebound in the semiconductor industry is a major positive. The company’s strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry in the days ahead. Its broad-based diversified portfolio remains its key growth driver.
However, softness in the Corporate & Other segment remains a concern. Weakening momentum across Taiwan and Europe is a major negative. Growing geopolitical tensions between the United States and China are headwinds.
(You can read the full research report on Applied Materials here >>>)
Kewaunee Scientific’s shares have outperformed the Zacks Instruments - Scientific industry over the past year (+126.9% vs. -3.6%). This microcap company with a market capitalization of $174.03 million demonstrates strong demand for its lab solutions, bolstered by global R&D investments. The Nu Aire acquisition expands market leadership, providing new revenue streams and operational synergies.
Diversified revenues across life sciences, healthcare and education mitigate sector-specific risks, while a strengthened balance sheet enhances financial flexibility.
However, risks include declining international sales (down 30.1% year over year in the second quarter of fiscal 2025), rising operating expenses (up 13.9% year over year), raw material cost vulnerabilities and project-based revenue reliance. Additionally, limited shareholder returns and foreign currency risks weigh on long-term attractiveness.
(You can read the full research report on Kewaunee Scientific here >>>)
Shares of AXIL Brands have underperformed the Zacks Consumer Products - Staples industry over the past year (-65.5% vs. +6%). This microcap company with a market capitalization of $27.48 million is facing risks which include declining operating margins, cash flow deficits, heavy vendor reliance, regulatory burdens and concentration risks (42% revenues from top customers). Competitive pressures and inventory challenges further threaten profitability, with net losses widening to $2.1 million in the third quarter of 2024.
Nevertheless, AXIL Brands' robust DTC sales growth highlights its strength in e-commerce, driving higher margins via enhanced digital platforms and customer retention. The company’s proprietary product innovations, like the X-Core series, align with the growing hearing enhancement market (7.8% CAGR through 2028), boosting margins and competitive differentiation.
The gross margin improved 330 bps year over year from supply-chain efficiencies and product mix, while strategic retail partnerships (more than 125 locations in 2024) and international expansion diversified revenues.
(You can read the full research report on AXIL Brands here >>>)
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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 Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Home Depot, Inc. (HD) : Free Stock Analysis Report
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