Friday, May 23, 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 Costco Wholesale Corp. (COST), Chubb Ltd. (CB) and The Cigna Group (CI), as well as two micro-cap stocks Global Self Storage, Inc. (SELF) and Natural Health Trends Corp. (NHTC). 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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Today's Featured Research Reports

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+25.5% vs. +15.7%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.

The Zacks analyst expects Costco to register an 11.3% adjusted earnings per share improvement in fiscal 2025 on 7.2% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.

A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Shares of Chubb have gained +8.6% over the past year against the Zacks Insurance - Property and Casualty industry’s gain of +22.3%. The company’s suite of compelling products as well as services, focus on capitalizing on the potential of middle-market businesses and investments in various strategic initiatives pave the way for long-term growth.

Several distribution agreements have expanded its network, boosting its market presence. An impressive inorganic growth story helps to achieve a higher long-term return on equity. Chubb boasts a strong capital position with sufficient cash generation capabilities that ensure steady payouts to investors.

Chubb expects the quarterly adjusted net investment income to have a run rate between $1.67 billion and $1.75 billion over the next six months. However, exposure to catastrophe loss induces underwriting volatility. Escalating expenses weigh on margin expansion.

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

Cigna’s shares have outperformed the Zacks Medical - HMOs industry over the year-to-date period (+12.2% vs. -29.8%). The company’s first quarter earnings beat estimates. Strategic acquisitions like Express Scripts and collaborations with Centene and Virgin Pulse support long-term growth. Revenues rose 14% year over year in 1Q25 to $65.5 billion.

It streamlined its portfolio with divestitures to Chubb, New York Life and HCSC, focusing on core health services. Shareholder returns remain strong with $1.5 billion in buybacks and $412 million in dividends in the first quarter.

However, challenges include high debt, rising interest expenses and a low ROA. High medical and service costs continue to pressure margins, with a medical care ratio projected at 83.2–84.2% for 2025. It must manage debt and improve operational efficiency to enhance long-term returns. It expects medical members to decline to 18.1M in 2025. As such, the stock warrants a cautious stance.

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

Shares of Global Self Storage have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+19.3% vs. +11.8%). This microcap company with market capitalization of $63.15 million posted strong first-quarter 2025 results, with net income up 108.6% and Adjusted Funds From Operations (AFFO) rising 16.8%, reflecting cost discipline and solid operating leverage.

Same-store Net Operating Income (NOI) grew 6.3%, outpacing revenue gains. Occupancy rose to 92.1%, while tenant duration hit a record 3.5 years, underscoring customer retention strength. The REIT holds $24.9 million in liquidity, with no revolver draw, enabling growth without dilutive equity. A 5.19% dividend yield is well-covered by AFFO.

However, narrow revenue growth, rising interest expenses, geographic concentration, elevated liabilities and asset value contraction pose risks. Although shares trade at discounts to industry EV/Sales, EV/EBITDA, and P/B medians, the REIT offers yield and resilience but faces competitive and structural headwinds.

(You can read the full research report on Global Self Storage here >>>)

Natural Health Trends’ shares have outperformed the Zacks Consumer Products - Discretionary industry over the year-to-date period (+11.1% vs. -8.6%). This microcap company with a market capitalization of $53.31 million has its core market strength lying in Hong Kong, which is driving 85% of first-quarter 2025 revenue despite a modest annual decline.

Sequential order growth and new product launches signal resilience, but heavy reliance on China poses regulatory and macroeconomic risks. Expansion into Colombia and other regions offers long-term diversification, though non-core markets remain underpenetrated. The first quarter of 2025 saw positive cash flow and net income, with $41.9 million in liquidity and no debt, but dividend payouts strain resources.

Membership attrition (down 4.6% year over year), rising commissions, and reliance on promotional incentives pressure margins. While trading below historical and industry valuation multiples, growth remains constrained by geographic overconcentration and trade volatility.

(You can read the full research report on Natural Health Trends here >>>)

Other noteworthy reports we are featuring today include Mondelez International, Inc. (MDLZ), Cloudflare, Inc. (NET) and Exelon Corp. (EXC).

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>>>