Wednesday, October 1, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including International Business Machines Corp. (IBM), The Williams Companies, Inc. (WMB) and Hilton Worldwide Holdings Inc. (HLT), as well as a micro-cap stock The Eastern Company (EML). 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 >>> ADP Sees Negative -32K Jobs in September

Today's Featured Research Reports

IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+32.1% vs. +29.1%). The company is benefiting from a surge in demand for heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management. 

The integration of HashiCorp’s cloud software capabilities has further bolstered IBM’s hybrid multi-cloud approach. The company is betting big on the Watsonx platform, which is likely to be its core technology platform for AI capabilities. In addition, IBM continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing. 

However, declining net sales in the Consulting segment, owing to soft demand in some end markets, are straining margins. Macroeconomic headwinds are worrisome. IBM’s acquisition spree has also escalated integration risks.

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

Shares of Williams Cos have outperformed the Zacks Oil and Gas - Production and Pipelines industry over the past year (+37.6% vs. +25.6%). The company reported consistent earnings growth, with second quarter 2025 adjusted EBITDA of $1.8 billion and major Transco expansions driving long-term contracted revenues. 

Strategic acquisitions like Saber Midstream and ventures into power innovation projects broaden its footprint and diversify growth. Its fee-based model, with 90% of EBITDA insulated from commodity swings, underpins stable cash flows. However, risks persist: a high 63.4% debt-to-capitalization pressures the balance sheet, while elevated valuation multiples limit upside. 

Heavy reliance on regulatory approvals for large-scale projects adds uncertainty, and rising operating and capex requirements could erode margins and constrain free cash flow in weaker cycles. Consequently, the energy infrastructure provider warrants a cautious stance from investors.

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

Hilton Worldwide’s shares have outperformed the Zacks Hotels and Motels industry over the year-to-date period (+5.1% vs. -14%). The company is benefiting from strong net unit growth, hotel conversions, and recovery across international markets. Hilton Worldwide’s focus on expanding its luxury portfolio, along with growth in Hilton Honors membership, remains a key positive. 

Also, its focus on a capital-light model and disciplined capital return strategy bodes well. Management highlighted growing momentum in corporate group bookings, with forward-looking group position for 2026 and 2027 up in the high single digits. 

However, its dismal China performance and broader economic uncertainty remain a concern. Earnings estimates for 2025 have remained unchanged in the past 30 days, limiting the upside potential of the stock.

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

Shares of Eastern Co. have underperformed the Zacks Security and Safety Services industry over the past year (-26.4% vs. +29.6%). This microcap company with a market capitalization of $143.06 million has top-line pressures from backlog contraction, margin erosion due to rising input costs and weak cash flows. Elevated customer concentration adds risk. Shares are undervalued at 0.64x EV/sales and 7.34x EV/EBITDA vs. industry averages. 

Nevertheless, Eastern Co. is undergoing a strategic transformation aimed at operational efficiency and financial discipline. The closure of its Dearborn facility and shift to a leaner site, along with a 60-person headcount reduction, is set to yield $4 million in annualized savings. 

A disciplined capital allocation approach — marked by $2.1 million in share buybacks, $4 million net debt reduction, and a 1.23x senior leverage ratio — underscores its balance sheet strength. The divestiture of low-margin ISBM assets has sharpened focus on high-margin growth areas. A 340-quarter dividend streak reinforces income appeal.

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

Other noteworthy reports we are featuring today include Entergy Corp. (ETR), GE HealthCare Technologies Inc. (GEHC) and BJ's Wholesale Club Holdings, Inc. (BJ).

Mark Vickery
Senior Editor

Note: 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>>>