Wednesday, May 7, 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 Verizon Communications Inc. (VZ), Bristol-Myers Squibb Co. (BMY) and Canadian Pacific Kansas City Ltd. (CP), as well a micro-cap stock Nova LifeStyle, Inc. (NVFY). 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 >>> Pre-Markets in the Green: Disney Beats, Fed Report Awaits

Today's Featured Research Reports

Shares of Verizon Communications have gained +12.8% over the past six months against the Zacks Wireless National industry’s gain of +13.5%. The company recorded relatively healthy first-quarter 2025 results with both the top and bottom lines beating the Zacks Consensus Estimate. 

With one of the most efficient wireless networks in the U.S., the company continues to deploy advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. Its focus on mix-and-match pricing across wireless and home broadband offerings has contributed to solid customer additions. The continued expansion of 5G mmWave in multiple markets is a positive development. 

However, fierce competition from major players is hurting VZ’s profits. Heavy promotional spending and discounts to drive subscriber growth are putting pressure on margins. Macroeconomic challenges remain a concern.

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

Bristol-Myers Squibb shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+14.3% vs. -17.6%). The company reported better-than-expected first quarter results driven by higher demand for Opdivo, Breyanzi, Reblozyl and Camzyos. Consequently, the annual guidance was raised to reflect this performance. Recent label expansions of blockbuster oncology drug Opdivo should fuel further growth. 

However, generic competition for Revlimid, Pomalyst, Sprycel and Abraxane is adversely impacting revenue growth.  While the performance of new drugs such as Opdualag, Camzyos and Cobenfy is encouraging, they will take some time to make a significant contribution to the top line. 

Nonetheless, Bristol Myers’ efforts to streamline operations should boost the bottom line. Shares of the company are driven by the encouraging efforts to boost both top-line and bottom-line growth.

(You can read the full research report on Bristol-Myers Squibb here >>>)

Shares of Canadian Pacific have declined -9.4% over the past year against the Zacks Transportation - Rail industry’s decline of -12.6%. The company’s high operating expenses continue to weigh on the company's bottom line. CP's highly leveraged balance sheet is also a cause for worry. High capex may also create headwinds. Considering all these factors, investors are advised not to bet on the stock now. They should wait for a better entry point.

Nevertheless, following the approval of the merger with Kansas City Southern, the company is known as Canadian Pacific Kansas City Limited. The deal is anticipated to draw synergies (annually) of $1 billion within three years. 

The merged entity has started to offer a daily premium intermodal service between the U.S. Midwest and Mexico. The Zacks analyst is impressed with Canadian Pacific Kansas City's efforts to reward its shareholders through dividends and share repurchases.

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

Nova LifeStyle’s shares have underperformed the Zacks Furniture industry over the past year (-51.6% vs. -28.1%). This microcap company with market capitalization of $14 million is facing ongoing losses, revenue contraction, high administrative costs and execution risk in portfolio revamp challenge scalability and margin stability amid macro demand sensitivity.

Nevertheless, Nova LifeStyle’s 2024 gross margin rose to 44% from 38% as the firm exited low-margin products and boosted average selling price (ASP) by 43%, despite a 12.6% sales decline. Operating expenses fell 9.2%, lowering net loss to $5.6 million from $7.7 million, but general and administrative costs rose 19.8%, and research and development (R&D) cuts limited innovation gains. 

A revamped product mix and North America focus (97.4% of sales) support pricing power, yet a 39% volume drop and Asian market exit signal weak demand. Sourcing diversification to Vietnam, India and Malaysia mitigates trade risk, though reliance on third-party vendors raises delivery and quality concerns.

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

Other noteworthy reports we are featuring today include Diageo plc (DEO), TC Energy Corp. (TRP) and Edwards Lifesciences Corp. (EW).

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>>>