Tuesday, April 1, 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 Amazon.com, Inc. (AMZN), Oracle Corp. (ORCL) and Merck & Co., Inc. (MRK). 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 >>> Countdown to "Liberation Day;" Pre-Markets in the Red

Today's Featured Research Reports

Shares of Amazon.com have gained +4.1% over the past year against the Zacks Internet - Commerce industry’s gain of +15.4%. The company’s top-line is driven by steady momentum in Prime and AWS. Strengthening AWS services portfolio and its growing adoption rate is contributing well to AWS performance. Ultrafast delivery services and expanding content portfolio are beneficial. 

Strengthening relationships with third-party sellers is a positive. Robust advertising businesses are also contributing well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus into generative AI is a major plus. We expect 2025 net sales to increase 8.6% from 2025. 

However, Amazon announced disappointing guidance for the first quarter. Management cited foreign exchange headwinds and the absence of an extra Leap Year Day as factors likely to impact growth in the current quarter.

(You can read the full research report on Amazon.com here >>>)

Oracle’s shares have outperformed the Zacks Computer - Software industry over the past year (+13.8% vs. -6.2%). The company reported mixed fiscal Q3 2025 results, wherein earnings and revenues missed estimates. Revenues were driven by continued momentum from its Oracle Cloud Infrastructure business, including from winning cloud-computing contracts from AI-focused startups. 

ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. ORCL’s partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google bodes well. Oracle’s Gen 2 Cloud is driving artificial intelligence clientele.  Its share buybacks and dividend policy are noteworthy. 

The Zacks analyst expect fiscal 2025 net sales to grow 7.7% from fiscal 2024. However, higher spending on product enhancements, toward the cloud platform amid increasing competition in the cloud domain is likely to limit margin expansion.

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

Shares of Merck have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-29.7% vs. -4.7%). The company is facing rising competitive pressure on the diabetes franchise and persistent challenges for Gardasil in China remain overhangs. There are concerns about Merck’s ability to successfully navigate the Keytruda loss of exclusivity period and potential competition for Keytruda. 

However, Keytruda’s sales are expected to remain strong until it loses patent protection. Estimates are stable ahead of Q1 results. Merck has a positive record of earnings surprises in recent quarters.

Nevertheless, Blockbuster drug, Keytruda, and new products have been driving Merck’s sales. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth. Animal health is also contributing to growth. Merck boasts a strong cancer pipeline. 

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

Other noteworthy reports we are featuring today include AT&T Inc. (T), $Danaher Corp(DHR-W)$. (DHR) and Duke Energy Corp. (DUK).

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

Amazon (AMZN) Rides on Prime & AWS Amid Rising Competition

Oracle (ORCL) Gains from Cloud Suite Adoption Amid Competition

Keytruda to Remain Merck's (MRK) Key Top-Line Driver

Featured Reports

AT&T (T) Rides on Solid Momentum in Postpaid Wireless Business
Per the Zacks analyst, solid postpaid subscriber addition and lower churn rate combined with a steady improvement in postpaid average revenue per user will likely drive AT&T's top line.

Strong Diagnostics Unit Aids Danaher (DHR), High Debt Ails
Per the Zacks analyst, Danaher's Diagnostics segment is driven by solid momentum in clinical and molecular diagnostics businesses. However, high debt obligation remains a concern for the company.

Investments Aid Duke Energy (DUK), Poor Financials May Hurt
Per the Zacks analyst, solid investments in infrastructure and expansion projects boost Duke Energy's growth. Yet the company's poor financial position might remain a concern for its investors

Capex Aids American Electric (AEP) Amid High Interest Costs
Per the Zacks analyst, solid capital expenditure in transmission and distribution should benefit American Electric. Yet, increasing interest expenses might hurt its bottom-line performance

Targa (TRGP) to Benefit from Booming Permian Presence
The analyst believes that Targa Resources is set to gain significantly from the growth in America's hottest shale region - the Permian Basin - but is concerned over the high debt levels.

Edwards (EW) Rides on Solid TAVR Sales and Global Prospects
Per the Zacks analyst, Edwards' strong TAVR sales in the domestic and global markets is a major positive. Also, the company firming its hold in the Asian markets, especially Japan buoys optimism.

Everest Group (EG) Banks on Solid Premiums Amid High Costs
Per the Zacks analyst, Everest Group is set to grow on solid Insurance segment on the back of new business opportunities, which drives premium growth. However, high costs remain a concern.

New Upgrades

Aptiv (APTV) Benefits From Hohle and Wind River Acquisition
Per the Zacks analyst, the Hohle Ltd acquisition has boosted Aptiv's Signal and Power Solutions segment. Wind River has expanded the company's position in the automotive software solutions market.

V.F. Corp's (VFC) Reinvent Transformation Plan Looks Solid
Per the Zacks analyst, V.F. Corp's Reinvent transformation program, aimed at reducing costs, strengthening balance sheet, revitalizing the U.S. business, and driving the Vans turnaround, bodes well.

Restructuring, Higher Rates to Aid Hilltop Holdings (HTH)
Per the Zacks analyst, relatively higher rates, business restructuring efforts, decent loan demand, and improving fee income alongside solid liquidity will likely aid Hilltop Holdings' financials.

New Downgrades

J. B. Hunt (JBHT) Grapples With Higher Interest Expense & Debt Woes
Per the Zacks analyst, higher net interest expense is likely to mar J.B. Hunt's bottom line. A debt-laden balance sheet continues to act as a major concern.

Mortgage Rate Risks & High Costs Hurt Boise Cascade (BCC)
Per the Zacks analyst, Boise Cascade is hurting from high mortgage rates resulting in affordability issues among homebuyers. This alongside high cost & expense structure are concerns to its prospects.

High Mortgage Rates & Inflationary Costs Hurt NVR's Growth
Per the Zacks analyst, NVR is hurting from the ongoing affordability concerns surrounding the housing market due to high mortgage rates along with increased building costs and expenses.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

AT&T Inc. (T) : Free Stock Analysis Report

Duke Energy Corporation (DUK) : Free Stock Analysis Report

Merck & Co., Inc. (MRK) : Free Stock Analysis Report

Danaher Corporation (DHR) : Free Stock Analysis Report

Oracle Corporation (ORCL) : Free Stock Analysis Report

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

Zacks Investment Research