Friday, June 6, 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 Oracle Corp. (ORCL), Novo Nordisk A/S (NVO) and Linde plc (LIN), as well as two micro-cap stocks NVE Corp. (NVEC) and CPS Technologies Corp. (CPSH). 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 Relieved with Strong Jobs Headline; Revisions Lower

Today's Featured Research Reports

Oracle’s shares have outperformed the Zacks Computer - Software industry over the past year (+37.4% vs. +15.4%). The company is gaining from ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings, including from winning cloud-computing contracts from AI-focused startups.

The solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP, bodes well. ORCL’s partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google holds promise. 

Oracle’s Gen 2 Cloud is driving artificial intelligence clientele. Its share buybacks and dividend policy are noteworthy. The Zacks analyst expects 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 Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-48.5% vs. -14.7%). The company’s failure to meet the weight-loss target with CagriSema twice has caused Novo a huge setback. Intense competition in the obesity sector also threatens its market share. Patent expiry and pricing pressures across the diabetes market remain headwinds. 

Nevertheless, Novo Nordisk’s first-quarter earnings match, while revenues miss. Ozempic and Rybelsus for diabetes and Wegovy for obesity are performing well, fueled by increasing demand. Label expansions for the drugs in cardiovascular and other indications will likely boost sales. 

Novo Nordisk has been tackling the supply constraints of Wegovy by making serious investments to ramp up production. An oral formulation of Wegovy is currently under review by the FDA for obesity. Novo Nordisk is also pursuing other indications, like liver fibrosis and MASH for semaglutide.

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

Linde’s shares have outperformed the Zacks Chemical - Specialty industry over the past year (+9.7% vs. +3%). The company remains a dominant player in the industrial gas sector, delivering strong financial performance with consistent EPS growth, disciplined capital allocation, and industry-leading margins. Its record $10 billion backlog ensures long-term revenue stability, while sustainability initiatives position it as a leader in low-carbon energy solutions. 

Strategic investments in high-return projects and small on-site contracts further reinforce its competitive edge. However, foreign exchange headwinds, softening industrial demand in Europe & China, and regulatory uncertainties pose challenges. 

Also, slower growth in healthcare impacts diversification efforts. Despite these risks, LIN's strong execution, efficiency improvements, & long-term contracts position it well for sustained profitability & resilience in fluctuating market conditions.

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

Shares of NVE have underperformed the Zacks Electronics - Semiconductors industry over the past year (-1.8% vs. +25.9%). This microcap company with a market capitalization of $345.33 million have a 13% year-over-year revenue decline, rising costs and increased inventory raise concerns about demand softness and cost control. Customer concentration, especially dependence on Abbott, adds risk ahead of a key contract expiry in December 2025.

Nevertheless, NVE Corp offers a compelling investment case, driven by exceptional profitability, with the fiscal 2025 gross margin rising to 84% and the operating margin at 62%, aided by a favorable product mix and direct sales strategy. 

A debt-free balance sheet, $52 million in liquid assets and disciplined capital allocation, including consistent dividends, highlight financial strength. Strategic capex supports next-gen manufacturing scale-up, enhancing margin leverage. Additionally, NVEC’s proprietary spintronics tech enables leadership in high-performance sensing for medtech and industrial IoT. 

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

CPS Technologies’ shares have outperformed the Zacks Electronics - Miscellaneous Components industry over the past year (+64.4% vs. -4.9%). This microcap company with a market capitalization of $40.96 million is leveraging contract wins and defense-funded R&D to build a diversified, innovation-driven revenue base. 

The $13.3-million AlSiC contract and five active SBIR awards support visibility through 2025, with the commercialization of advanced materials like radiation shielding and fiber-reinforced aluminum offering future upside. A third production shift has driven revenue and gross margin recovery, though yields remain pressured. CPSH is positioned to benefit from megatrends in electrification, thermal management and defense modernization. 

However, profitability is sensitive to volume and mix, with limited long-term contract coverage, early-stage product risk, working capital inefficiencies and ongoing labor volatility. The absence of high-margin armor revenues post-2024 further tempers near-term margin expansion.

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

Other noteworthy reports we are featuring today include Arista Networks Inc (ANET), Constellation Energy Corp. (CEG) and AutoZone, Inc. (AZO).

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>>>