Wednesday, July 9, 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 SAP SE (SAP), Novo Nordisk A/S (NVO) and Thermo Fisher Scientific Inc. (TMO), as well a micro-cap stock FONAR Corp. (FONR). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Shrug Off Trade Deadline, FOMC Minutes Out Today

Today's Featured Research Reports

SAP’s shares have outperformed the Zacks Computer - Software industry over the past year (+53.6% vs. +13.3%). The company is gaining momentum in the cloud business, especially regarding its Cloud ERP Suite and the rising adoption of the "Rise with SAP" and "Grow with SAP" solutions. Steady growth in its Cloud backlog also bodes well. 

SAP remains confident in its growth trajectory and has reaffirmed its outlook, expecting cloud revenues of €21.6-€21.9 billion for 2025, up 26–28% at constant currency from €17.14 billion in 2024. Operating profit growth in the first quarter of 2025 was driven by efficiencies from the successful 2024 transformation program, aiding margins. 

However, ongoing softness in the software license and services business continues to weigh on performance. In the first quarter, software license revenues declined 10% year over year, while services revenue fell 1%. Also, intense competition in the cloud space remains a concern.

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

Shares of Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-50.5% vs. -15.9%). The company’s failure to meet the weight-loss target with CagriSema twice gave Novo Nordisk a huge setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a woe.

Nevertheless, Novo Nordisk’s Ozempic and Rybelsus for diabetes and Wegovy for obesity are performing well, fueled by increasing demand. Label expansions of the same in cardiovascular and other indications will likely boost sales. It 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 and a higher dose of the injection is under review in the EU. 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 >>>)

Thermo Fisher’s shares have underperformed the Zacks Medical - Instruments industry over the past year (-20.6% vs. -11%). Volatile macroeconomic uncertainties can dent the company’s operations. Also, currency woes and fierce competitive pressure add to the worry.

Nevertheless, Thermo Fisher is braving the ongoing tough economic conditions by leveraging GenAI as part of the PPI Business System, resulting in strong financial performance. The company’s growth strategy has been bolstered by several recent product launches, including Olink Reveal and Thermo Scientific Vulcan Automated Lab, among others, in the first quarter. 

Thermo Fisher’s continuous efforts to prioritize its partnership with customers to drive innovation and improve patient care bode well. The Zacks analyst expects the company’s revenues to witness a 7.3% CAGR during fiscal 2025-2027. Robust solvency further instills optimism about the stock.

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

Shares of FONAR have gained +4.2% over the past year against the Zacks Medical - Products industry’s gain of +6.5%. This microcap company with a market capitalization of $96.71 million delivers stable, recurring revenue through long-term MRI center management contracts. Strong scan volume growth (up 3.9% for the nine months ended March 31, 2025, versus the prior year) and rising utilization support site-level productivity. 

The dual-modality MRI strategy (adding high-field units to STAND-UP centers) enhances throughput and clinical utility. A strong balance sheet with $54.4 million in cash and minimal debt provides growth flexibility. 

Yet, rising SG&A costs and credit reserves are compressing margins, while MRI equipment sales remain weak. Revenue growth remains flat despite record scans, reflecting limited pricing power. Heavy dependence on no-fault/PIP claims and tech disruption risk from AI-driven imaging present headwinds. The stock offers deep value but requires margin recovery and tech reinvestment for re-rating.

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

Other noteworthy reports we are featuring today include Phillips 66 (PSX), HubSpot, Inc. (HUBS) and The Carlyle Group Inc. (CG).

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>>>