The Zacks Analyst Blog Highlights Bank of America, Accenture, ServiceNow, Tile Shop and Moving iMage Technologies

Zacks
13 Mar

For Immediate Release

Chicago, IL – March 13, 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: $Bank of America Corp(BAC-N)$. BAC, Accenture plc ACN, ServiceNow, Inc. NOW, Tile Shop Holdings, Inc. TTSH and Moving iMage Technologies, Inc. MITQ

Here are highlights from Wednesday’s Analyst Blog

Top Research Reports for Bank of America, Accenture & ServiceNow

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 Corp. (BAC), Accenture plc (ACN) and ServiceNow, Inc. (NOW), as well as two micro-cap stocks Tile Shop Holdings, Inc. (TTSH) and Moving iMage Technologies, Inc. (MITQ). 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 >>> CPI +0.2%, Inflation Rate +2.8%: Lower than Expected

Today's Featured Research Reports

Shares of Bank of America have gained +12.5% over the past year against the Zacks Financial - Investment Bank industry's gain of +22.1%. 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. We expect 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 >>>)

Accenture's have underperformed the Zacks Computers - IT Services industry over the past year (-12% vs. -6.7%). The company is facing rising competition that has led to increased talent costs and pricing pressures. Rapid acquisitions have made the company prone to integration risks. The stock has declined 13.4% in a year and we have a Neutral recommendation for it in anticipation of a better entry.

Nevertheless, Accenture's growth strategy focuses on delivering 360-degree value to stakeholders, making the stock attractive. This consulting services provider thrives on the robust demand for application modernization and maintenance, cloud enhancements, and cybersecurity.

Over the years, Accenture has leveraged buyouts to strengthen digital technology and capital project capabilities. Its cash position allows the company to explore different markets. Dividend-seeking investors will find this stock appealing. Also, its liquidity position is a tailwind.

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

Shares of ServiceNow have outperformed the Zacks Computers - IT Services industry over the past year (+4.1% vs. -6.7%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 2,109 total customers with more than $1 million in annual contract value (ACV) at the end of the fourth quarter, which represents 14% year-over-year growth in customers.

ServiceNow had 19 deals greater than $5 million in net new ACV. It closed 170 deals greater than $1 million net new ACV. Generative Artificial Intelligence (Gen AI) deals continued to gain traction.

ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. Pro Plus AI grew 150% sequentially. It is riding on an expanding partner base and acquisitions. However, NOW is suffering from stiff competition and unfavorable forex.

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

Tile Shop's shares have declined -4.7% over the past year against the Zacks Building Products - Retail industry's decline of -6.1%. This microcap company with market capitalization of $287.15 million has seen comparable store sales decline 7.8% in 2024, resulting in a 78.2% fall in operating income. SG&A remains high, and inventory write-offs persist. Persistent macroeconomic pressures, including high interest rates and weak home sales, continue to suppress demand.

Rising costs and inventory challenges pose additional risks, while the lack of store expansion limits future revenue growth. Nevertheless, Tile Shop's gross margin grew 130 bps to 65.7% in 2024, aided by lower freight costs and supplier negotiations.

It maintains a strong balance sheet with no debt and $20.9 million in cash, up from $8.6 million in 2023, supported by $27.1 million in operating cash flow. Growth initiatives include the relaunch of its high-margin Superior installation line (whose sales volumes improved in fourth-quarter 2024) and an expanded entry-level product assortment.

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

Shares of Moving iMage Technologies have underperformed the Zacks Technology Services industry over the past year (-11.6% vs. +40.1%). This microcap company with market capitalization of $5.08 million has seen revenues decline 12.2% YoY to $8.7 million in the first half of fiscal 2025. Its reliance on one-time high-margin orders creates earnings volatility, while slow adoption of industry upgrades delays revenue recognition. Customer and supplier concentration risks persist.

Nevertheless, MiT is expanding its product portfolio with high-margin offerings like LEA Professional amplifiers, CineQC, and MiTranslator, enhancing its market reach beyond traditional cinema. Favorable industry trends, including rising investments in premium cinematic experiences and technology upgrades, position MiT for growth.

Gross margins improved to 26.5% in the first half of fiscal 2025. Liquidity remains strong with $5.3 million in cash and no long-term debt, supporting expansion. Strategic customer acquisition, European market entry, and increasing demand for accessibility solutions further strengthen MiT's long-term growth potential.

(You can read the full research report on Moving iMage Technologies 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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Bank of America Corporation (BAC) : Free Stock Analysis Report

Accenture PLC (ACN) : Free Stock Analysis Report

ServiceNow, Inc. (NOW) : Free Stock Analysis Report

Tile Shop Hldgs, Inc. (TTSH) : Free Stock Analysis Report

Moving iMage Technologies, Inc. (MITQ): Free Stock Analysis Report

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

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