Wednesday, July 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 Wells Fargo & Co. (WFC), Abbott Laboratories (ABT) and American Express Co. (AXP), as well as two micro-cap stocks TSS, Inc. (TSSI) and Maui Land & Pineapple Company, Inc. (MLP). 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 Shine on Japanese Auto Trade Deal

Today's Featured Research Reports

Wells Fargo’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+45.6% vs. +42.5%). The company’s earnings surpassed the estimates in each of the trailing four quarters. Its second-quarter 2025 results benefited from an improvement in non-interest income and lower provisions. 

The Fed's June 2025 removal of the $1.95 trillion asset cap allows growth in deposits, loans, and fee-based services. Strategic investments in talent and technology, along with new partnerships, support long-term growth. After clearing the 2025 Fed stress test, Wells Fargo plans to raise dividends, backed by strong liquidity and capital. 

However, its revenues remain pressured by subdued NII and volatile funding costs. Mortgage banking income is also weak despite restructuring efforts. Also, rising technology and compensation costs pushed expenses higher, which is likely to hurt profitability.

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

Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+20.8% vs. +8.7%). The company’s strong pipeline is opening up 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. The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales through 2025. Within Nutrition, despite softness in its 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, tariffs and foreign exchange also add to the worry.

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

American Express’ shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+28.1% vs. +19.5%). The company’s second quarter earnings beat estimates. It is benefiting from sustained revenue growth driven by new product launches, strategic partnerships and a rebound in travel and entertainment spending. 

American Express’ revenues rose 8% YOY in the first half of 2025. Strong cash generation and disciplined capital returns underscore its financial strength. AXP returned $2 billion in 2Q25 through dividends and buybacks. The company expects EPS in the range of $15-$15.50 in 2025. 

However, persistently rising expenses continue to weigh on margins. Loan loss provisions remain elevated due to macro uncertainty. A high debt load and increased interest costs further pressure profitability. AXP’s limited exposure to emerging non-card payment channels may constrain future competitiveness. As such, the stock warrants a cautious stance.

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

Shares of TSS have outperformed the Zacks Engineering - R and D Services industry over the year-to-date period (+115.3% vs. +11.7%). This microcap company, with a market capitalization of $635.52 million, is capitalizing on surging demand for AI infrastructure through its high-growth rack integration segment, with first-quarter 2025 revenue up 253% year-over-year and margin expansion from 28% to 32%. 

Backed by a multi-year OEM agreement, its new 213,000 sq. ft. liquid-cooled facility scales power to 15 MW, enabling long-term earnings visibility. Procurement services, driven by federal demand, grew 676% year over year and provide strong cash flows despite lower margins. Operating income surged to $4.1 million, supported by automation and SG&A leverage. 

A $25-30 million facility investment positions TSS for scalable AI workloads with a two-year payback. With $27.3 million in cash and $20.6 million in Q1 operating cash flow, TSS self-funds growth. Favorable AI and modular trends enhance its competitive edge and long-term trajectory.

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

Maui Land & Pineapple’s shares have underperformed the Zacks Real Estate - Operations industry over the year-to-date period (-15.6% vs. +9.3%). This microcap company, with a market capitalization of $549.23 million, is facing near-term risks including pension-related losses, weak cash conversion, high G&A costs, limited segment diversification, and delays in monetizing entitled assets. Execution and scalability remain key investor watchpoints.

Nevertheless, MLP offers a compelling value proposition as a major Maui landholder with more than 22,000 acres of land and 247K square feet of commercial real estate. Its active land-use planning—like the 927-acre Kapalua Mauka—is geared toward phased monetization aligned with local housing and agricultural needs. 

Leasing revenue rose 45% year over year in the first quarter of 2025, providing stable income to fund development without external capital. A new agave venture enhances agricultural land productivity and opens recurring revenue streams. Strong liquidity ($21.5 million) and minimal debt underpin financial flexibility. 

(You can read the full research report on Maui Land & Pineapple here >>>)

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Inc. (VRTX), Duke Energy Corp. (DUK) and D.R. Horton, Inc. (DHI).

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>>>