Monday, April 21, 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 Visa Inc. (V), ServiceNow, Inc. (NOW) and The Progressive Corp. (PGR), as well as two micro-cap stocks The Monarch Cement Co. (MCEM) and Precipio, Inc. (PRPO). 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 >>>

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You can read today's AWS here >>> Expect the Unexpected for a New Trading Week

Today's Featured Research Reports

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+20.3% vs. +15.9%). The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow by low double-digits in fiscal 2025. 

Visa is fueled by persistent increases in payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value. 

However, elevated operating expenses pose margin challenges. We expect this metric to rise 7.6% year over year in fiscal 2025. It is witnessing volatile cash volume from the Asia Pacific and U.S. regions. Hence, the stock warrants a cautious stance.

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

Shares of ServiceNow have outperformed the Zacks Computers - IT Services industry over the past year (+4.7% vs. -5.1%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. 

ServiceNow 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 >>>)

Progressive’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+25.9% vs. +23.9%). The company continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. 

Progressive’s focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for the company's growth. Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy. 

However, exposure to catastrophe losses induces underwriting volatility. Escalating expenses due to higher losses and settlement expenses remain an overhang on the margin. Its high debt level induces higher interest expense concerns.

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

Shares of Monarch Cement have outperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (+29.7% vs. -12.2%). This microcap company with market capitalization of $856.63 million offers a compelling case for long-term investors with steady fiscal 2024 growth, driven by effective pricing that offset volume declines. 

Net sales rose 2% year over year to $268.1 million, with gross profit up 6.7% and cement margins expanding to 52.4%. Strong internal cash generation of $73.6 million supported consistent dividends, including a $2.17 special payout. Retained earnings climbed 13.1% to $368.5 million, boosting equity to $403.9 million and reinforcing capital strength. 

Monarch Cement remains debt-free, with $48.8 million in cash and access to $15 million in credit. Its regional footprint and dual revenue streams add diversification, while long-term raw material reserves support sustainable production. A new JV enhances downstream exposure and capital flexibility. Monarch Cement’s brand, balance sheet, and strategic initiatives underscore its durability and income appeal.

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

Precipio’s shares have outperformed the Zacks Medical Info Systems industry over the year-to-date period (+11.7% vs. -5.2%). This microcap company with a market capitalization of $8.85 million is transitioning from capital preservation to a growth-oriented, self-funded model, driven by its profitable Pathology division, which exceeded its $1.3 million per month breakeven for two straight quarters, and targets a $25 million run-rate by 2025. 

The Products unit, flat in fourth-quarter 2024, is poised for growth via leadership changes, major client onboarding and a revamped distribution strategy, aiming to double revenue to $5.6 million. Precipio’s strategic execution, disciplined spending, capital-light model and alignment with precision diagnostics trends support long-term potential. 

Risks include fragile liquidity, execution delays, regulatory shifts, customer concentration and macroeconomic headwinds that could pressure growth and margins. The stock appears undervalued, signaling an entry point for value-oriented investors.

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

Other noteworthy reports we are featuring today include Toyota Motor Corp. (TM), GSK plc (GSK) and Paychex, Inc. (PAYX).

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

Visa (V) Rides On Cross Border Volume Growth, Expenses High

Growing Customer Base Drives ServiceNow's (NOW) Prospects

Progressive's (PGR) Solid Policies in Force Aid, Cat Loss Ail

Featured Reports

Surge in Hybrid Adoption Aids Toyota (TM), High Expenses Ail
Per the Zacks analyst, continued growth in hybrid adoption is likely to boost Toyota's sales. However, high R&D expenses on advanced technologies are likely to limit the near-term margins.

GSK (GSK) Specialty Medicines Unit Strong; Vaccines Weak
GSK is witnessing increased sales growth of the Specialty Medicines unit. However, slowing sales in the Vaccines unit concerns the Zacks analyst

Paychex (PAYX) Gains on Flexible Portfolio Despite Expenses
Per the Zacks analyst, Paychex's ability to meet clients' HR and payroll needs through a comprehensive and flexible service portfolio benefits its top line. Rising expenses are concerning.

Southwest Airlines (LUV) Rides on Air Travel Demand, Costs Ail
The Zacks Analyst likes LUV's revenue management actions, which are likely to boost revenue growth and expand the customer base. However, the rise in labor costs weighs on bottom-line growth.

Smart Water Innovation & Buyouts Drive Badger Meter (BMI)
Per the Zacks analyst, Badger Meter's performance is driven by its customer-focused innovation, and strategic agility. SmartCover acquisition is paying off early with positive feedback from customers.

Amedisys (AMED) Rides on Key Metric, Merger Woes Persist
Per the Zacks analyst, Amedisys achieving the Quality of Patient Care star average of 4.18 across all providers, is impressive. Yet, legal hurdles cloud its proposed merger with UnitedHealth Group.

Transocean Buoyed by Strong Backlog and Utilization
The Zacks analyst notes that Transocean's $7.9 billion backlog and near-full fleet utilization boost revenue visibility, but its high debt remains a concern.

New Upgrades

Solid Demand Across Data Center Market Aid Marvell (MRVL)
Per the Zacks Analyst, Marvell is growing on solid momentum in electro-optics products, custom silicon, storage and switch divisions, which are driving the Data Center end-market revenues.

Loans, Dealer Enrolments to Support Credit Acceptance (CACC)
Per the Zacks analyst, decent loan demand, rising dealer enrollments, a high cash flow-generating business model, and a solid balance sheet will likely aid Credit Acceptance's financials.

Advance Technology, Acquisitions Aid Consolidated Water (CWCO)
Per the Zacks analyst, Consolidated Water uses most advanced technology for desalination, allowing it to benefit by meeting increasing demand. Strategic acquisitions will boost its performance.

New Downgrades

American Eagle's (AEO) Soft FY25 View Indicates More Troubles
Per the Zacks analyst, American Eagle is expected to face headwinds in fiscal 2025 from consumer trends and macroeconomic climate, despite measures taken to reinforce sales and lower expenses.

Soft Comps & Macro Woes Ail Dave & Buster's (PLAY) Prospects
Per the Zacks analyst, Dave & Buster's is likely to be hurt by a drop in comps and store renovation disruptions. Also, an uncertain tariff environment is a concern.

Increasing Costs and Forex Woes to Hurt Zebra Technologies
Per the Zacks analyst, Zebra Technologies is struggling with high operating costs and expenses, which in turn, are hurting the company's bottom line. Forex woes are an added concern.

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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report

Visa Inc. (V) : Free Stock Analysis Report

Toyota Motor Corporation (TM) : Free Stock Analysis Report

Paychex, Inc. (PAYX) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

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

Precipio, Inc. (PRPO) : Free Stock Analysis Report

The Monarch Cement Co. (MCEM): Free Stock Analysis Report

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

Zacks Investment Research