Tuesday, October 7, 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 Tesla, Inc. (TSLA), UnitedHealth Group Inc. (UNH) and Shopify Inc. (SHOP), as well as a micro-cap stock Waterstone Financial, Inc. (WSBF). 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 >>> Do AI Trees Grow to the Sky?

Today's Featured Research Reports

Tesla’s shares have outperformed the Zacks Automotive - Domestic industry over the past year (+85.4% vs. +72.9%). The company’s EV sales are feeling the heat from rising global competition. After recording its first-ever annual decline in deliveries in 2024, the slump has continued into 2025, with drops in both the first and second quarters. 

Automotive margins are shrinking, and operating expenses are rising. Discouragingly, Musk expects the upcoming quarters to be rough. Still, there are a few bright spots. The Energy Generation & Storage unit remains a core strength, and the Supercharger network continues to expand. 

Tesla has also launched its robotaxi service, though early reactions have been mixed. But the company believes that it holds significant cost and scalability advantages. If Tesla can deliver on its promises, this could be a major growth driver. Until then, caution is key.

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

Shares of UnitedHealth have underperformed the Zacks Medical - HMOs industry over the past year (-37% vs. -31.3%). The company is facing persistent cost pressures, higher medical utilization, and an elevated debt burden threatening near-term margin stability. The Zacks analyst expects the MCR to increase to 89.4% in 2025. Its trimmed 2025 earnings outlook, coupled with a premium valuation and ongoing regulatory scrutiny, adds to investor caution. 

Also, operations of Optum Rx will likely take a hit from the current administration's policies on PBMs. As such, the stock warrants a cautious stance. Nevertheless, UnitedHealth continues to benefit from balanced growth across both its segments, supported by rising healthcare demand and disciplined execution. 

Consistent revenue gains, strong commercial enrollment and resilient cash flows highlight its scale advantage and diversified business mix. Optum’s expanding technology and value-based care operations further enhance long-term growth visibility.

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

Shopify’s shares have outperformed the Zacks Internet - Services industry over the past year (+99.2% vs. +51%). The company prospect is benefiting from an expanding merchant base. New merchant-friendly tools like Shop Minis, Shop Cash, and Sign in with Shop along with Shop Pay solutions are helping SHOP win merchants regularly.

Shopify’s investment in AI-driven tools, such as Catalog, Universal Cart, and Sidekick, is helping merchants improve customer engagement and streamline operations. Shopify’s expanding international footprint with strong growth in Europe is a key catalyst. A rich partner base is helping SHOP expand its merchant base. Strong free cash flow margin reflects solid liquidity. 

However, Shopify faces gross margin pressure due to higher hosting costs, the three-month paid trial program, and the expanded PayPal partnership, which carries lower margins. Higher operating expenses are expected to hurt operating profit.

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

Shares of Waterstone Financial have outperformed the Zacks Financial - Savings and Loan industry over the past year (+14.9% vs. +10.9%). This microcap company with market capitalization of $285.60 million demonstrates earnings resilience with 35.2% YoY net income growth in Q2 2025, despite mortgage banking headwinds. Improved ROA (1.39%) and ROE (9.04%) highlight enhanced profitability, driven by cost discipline and operational efficiency. 

The Community Banking segment delivered robust income growth via reduced compensation and occupancy costs, offsetting margin compression from deposit pricing. A sustained 15 cents dividend underscores capital strength and shareholder focus. Credit quality remains stable, with minimal provisioning needs and improved residential loan performance. 

However, mortgage banking remains a drag with declining originations, shrinking margins and weak operating leverage. Persistent unrealized securities losses ($20.5 million) and rising CRE non-accruals introduce valuation and credit risks. Shares trade below peers at 0.83x P/B and 13.39x P/E. 

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

Other noteworthy reports we are featuring today include Cheniere Energy, Inc. (LNG), Entergy Corp. (ETR) and Carnival Corp. & plc (CCL).

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>>>