Friday, June 20, 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 Meta Platforms, Inc. (META), Palantir Technologies Inc. (PLTR) and Abbott Laboratories (ABT), as well as two micro-cap stocks SandRidge Energy, Inc. (SD) and CompX International Inc. (CIX). 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 Climb on Rate Cut Visibility

Today's Featured Research Reports

Meta Platforms’ shares have outperformed the Zacks Internet - Software industry over the past year (+39.2% vs. +37.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. 

META has been leveraging AI to improve the potency of its offerings. These services currently reach more than 3.43 billion people daily. Meta Platforms’ growing footprint among young adults, driven by improving recommendations, boosts its competitive prowess. AI usage is making it a popular name among advertisers. This is expected to drive top-line growth. 

Meta Platforms now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which is a concern.

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

Shares of Palantir have outperformed the Zacks Internet - Software industry over the year-to-date period (+85% vs. +13%). The company’s AI strategy, driven by Foundry, Gotham and AIP platforms, targets government and commercial sectors, enabling real-time insights and operational efficiency. 

Notable defense projects like Open DAGIR, and AIP boot camps for commercial clients boost customer acquisition. With $5.2 billion in cash, no debt and S&P 500 inclusion, Palantir enjoys strong liquidity, growing revenues and increased investor visibility. 

However, PLTR's reluctance to pay quarterly dividends is a minus for dividend-seeking investors. Intense competition from tech giants and rising costs amidst a rapidly evolving AI landscape and an elevated valuation also challenge its appeal. 

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

Abbott’s shares have outperformed the Zacks Medical - Products industry over the past year (+27.8% vs. +8.9%). The company’s pipeline is unlocking new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory.

Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. 

Within Nutrition, despite softness in international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business. Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also adds to the worry. 

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

Shares of SandRidge Energy have outperformed the Zacks Oil and Gas - Integrated - U.S. industry over the year-to-date period (+5.3% vs. -1.6%). This microcap company with a market capitalization of $443.18 million has a debt-free balance sheet and $101.1 million cash position back strong self-funding capacity, and $13.6 million in free cash flow in Q1 2025. 

Adjusted EBITDA jumped 73% to $25.5 million on higher volumes and better gas prices, with gas now 49% of production. Since 2023, $158 million has been returned to shareholders via dividends and buybacks, with $70 million repurchase capacity remaining. Cherokee drilling supports reserve growth, but capital intensity and WTI/gas price volatility pose risks. 

Heavy back-half completions, cost inflation, and natural gas legacy underutilization limit efficiency. Large NOLs support tax sheltering but rely on consistent profits; Section 382 limits apply. Reserve quality hinges on Cherokee execution as legacy reserves decline. Commodity swings and execution missteps could pressure cash flow and returns despite strong capital discipline.

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

CompX International’s shares have outperformed the Zacks Office Supplies industry over the past year (+18.8% vs. -38%). This microcap company with a market capitalization of $293.43 million has first-quarter 2025 results highlight resilient core operations and expanding profitability. Security Products maintained a stable gross margin (29.8%) despite OEM softness, supported by gains in government and healthcare markets. 

Marine Components delivered a 24% year-over-year sales increase and a structural margin uplift to 22.3%, driven by fixed cost leverage and a favorable product mix. The company-wide gross margin rose to 30.2%, fueling a 58% surge in operating income. Cash remained strong at $56.1 million, with no debt and improved inventory efficiency. 

However, risks include negative operating cash flow due to rising receivables, a 29% drop in interest income and tariff-driven raw material inflation. Continued OEM channel weakness and DSO expansion raise caution, but internal execution and margin tailwinds position CompX for an upside in 2025.

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

Other noteworthy reports we are featuring today include Intuit Inc. (INTU), Illinois Tool Works Inc. (ITW) and Veeva Systems Inc. (VEEV).

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>>>