Tuesday, June 24, 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 JPMorgan Chase & Co. (JPM), Novartis AG (NVS) and AT&T Inc. (T), as well as two micro-cap stocks Perma-Pipe International Holdings, Inc. (PPIH) and Utah Medical Products, Inc. (UTMD). 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

JPMorgan’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+43.2% vs. +36.2%). The company's business expansion efforts, decent loan demand and relatively high rates will support net interest income (NII) growth. We expect NII (managed) to show a CAGR of 2.2% by 2027. 

While a solid resurgence in deal-making activities is likely to take time, a solid pipeline will drive the investment banking (IB) business. The Zacks analyst expect IB fees to witness a CAGR of 1.6% by 2027. 

Yet, the volatile nature of the capital markets business and high mortgage rates will hurt fee income growth. Our estimate for non-interest income (reported) shows a 6.9% fall in 2025. As the company invests in technology and marketing, expenses are expected to remain elevated. Our estimates for non-interest expenses imply a CAGR of 2.1% by 2027. Weakening asset quality is another major concern.

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

Shares of Novartis have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+12.4% vs. -16.7%). The company maintains strong momentum on the back of a strong and diverse portfolio with drugs like Kisqali, Kesimpta, Pluvicto and Leqvio. The uptake of Pluvicto and Scemblix has been outstanding and propels top-line growth. 

The Zacks model estimates for Pluvicto and Kisqali indicate a CAGR of 29.6% and 34.3%, respectively, over the next three years. Approval of new drugs and label expansion of existing drugs should enable Novartis to offset the adverse impacts of the generic competition for key drugs. 

The recent spate of acquisitions and collaborations has further strengthened its pipeline. Concurrent with the first-quarter results, management raised its guidance for 2025. However, one of the top drugs, Entresto, is likely to lose patent protection. This, in turn, may adversely impact sales. 

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

AT&T’s shares have outperformed the Zacks Wireless National industry over the past year (+59.1% vs. +28.3%). The company expects to continue investing in key areas and adjust its business according to the evolving market scenario to fuel long-term growth. With a customer-centric business model, AT&T is witnessing healthy momentum in its postpaid wireless business with a lower churn rate and increased adoption of higher-tier unlimited plans. 

AT&T has collaborated with Microsoft to move its 5G mobile network to the latter’s cloud. This will enable the company to enhance productivity and deliver large-scale network services to meet customers’ needs. 

However, the company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol (VoIP) service providers. Healthy discounts and freebies to woo customers dent margins. The high debt burden remains a concern.

(You can read the full research report on AT&T here >>>)

Shares of Perma-Pipe International have outperformed the Zacks Steel - Pipe and Tube industry over the year-to-date period (+57.2% vs. -0.1%). This microcap company with market capitalization of $187.67 million is benefiting from strong global tailwinds, including rising infrastructure investment, urbanization and energy efficiency demand. Its geographic reach across MENA, Southeast Asia, and the Americas enables access to high-growth sectors such as district energy, oil & gas, and pharmaceuticals. 

Backlog expanded 33% to over $100 million, driven by major wins like a $43 million GCC contract and a $2.4 million Qatar project, where the company is also building a permanent facility. Q1 FY25 saw sales rise 36% YoY, gross margins expand to 36%, and net income more than triple to $5 million. 

However, the company remains exposed to cyclical end markets such as oil & gas and construction, which are sensitive to economic slowdowns and project delays. Shares have surged 164% over the past year and continue to trade at a discount to peers on EV/EBITDA and EV/sales metrics.

(You can read the full research report on Perma-Pipe International here >>>)

Utah Medical Products’ shares have underperformed the Zacks Medical - Products industry over the past year (-9.8% vs. +5.1%). This microcap company with market capitalization of $178.29 million has risks consisting of: OEM dependence (PendoTECH accounted for 91% of the 1Q25 decline), regulatory headwinds and underutilized CapEx depress asset returns. Geopolitical tariff uncertainty and rising compliance costs add further pressure. Shares have fallen 10.7% YTD, now trading at 2.47X EV/sales compared with the sub-industry’s 6.24X. 

Nevertheless, UTMD remains strategically positioned in women’s and neonatal health, with resilient product demand and geographic diversification cushioning policy and currency risks. Despite a 14.4% YoY revenue drop in 1Q25, direct device sales grew 11.6%, highlighting demand strength in NICU devices. 

The firm operates with a high-margin, globally recognized specialty device portfolio, sustaining a 57% gross margin. UTMD’s in-house manufacturing supports cost control, while a debt-free balance sheet and $83.3 million in cash provide flexibility for shareholder returns and reinvestment.

(You can read the full research report on Utah Medical Products here >>>)

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Amphenol Corp. (APH) and Johnson Controls International plc (JCI).

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>>>