Wednesday, October 15, 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 UBS Group AG (UBS), Newmont Corp. (NEM) and McKesson Corp. (MCK), as well as a micro-cap stock The Cato Corp. (CATO). 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 >>> Pre-markets Strengthen on Solid Q3 Bank Earnings

Today's Featured Research Reports

Shares of UBS have gained +31.8% over the year-to-date period against the Zacks Banks - Foreign industry’s gain of +39.4%. The company’s earnings beat estimates in the trailing four quarters. UBS expanded its reach through partnerships, buyouts, and optimization plans supporting its financials. It has reduced risk-weighted assets in its Non-Core and Legacy portfolio, unlocking capital ahead of schedule. 

However, rising lawsuits, including the $987 million French tax settlement in September 2025, may raise litigation provisions and weigh on earnings. Its unfavorable debt/ equity ratio indicates that capital distribution might not be sustainable. 

Nevertheless, it remains on track to complete Credit Suisse’s integration by 2026 and achieve gross cost reductions of around $13 billion. Also, steady net interest income (NII) growth and a strong capital position will support top-line growth.

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

Newmont’s shares have outperformed the Zacks Mining - Gold industry over the year-to-date period (+152.5% vs. +126.5%). The company’s earnings estimates for the third quarter have been going up over the past month. The company is making notable progress with its growth projects. It is likely to gain from several projects, including the Tanami expansion. 

The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company also remains focused on improving operational efficiency and returning value to shareholders. 

However, it is grappling with higher production costs, reflected by higher costs applicable to sales (CAS) and all-in-sustaining costs (AISC). Elevated sustaining capital spending, along with a projected increase for 2025, have raised concerns about Newmont's cash flow. Higher general and administrative (G&A) expenses may also impact margins.

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

Shares of McKesson have outperformed the Zacks Medical - Dental Supplies industry over the year-to-date period (+39.2% vs. +2.7%). The company is delivering record revenues and expanding margins, supported by growth in specialty pharmaceuticals, oncology services, RxTS, and GLP-1 distribution. 

Strategic acquisitions such as PRISM and Core Ventures enhance its oncology footprint, while RxTS provides recurring, high-margin revenue streams. Strong cash flow generation and disciplined capital allocation underpin long-term adjusted EPS growth of 12–14%. 

However, risks remain significant. Revenue concentration with large customers, regulatory headwinds such as IRA and DSCSA, and execution challenges from the Medical-Surgical separation and ongoing M&A integration could pressure earnings stability. Rising labor and transportation costs, combined with variability in 3PL revenues, add further margin uncertainty.

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

Cato’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the year-to-date period (+7.7% vs. -11.2%). This microcap company with a market capitalization of $82.46 million posted a strong earnings rebound in Q2 FY25, with net income surging to $6.8 million from $1 million YoY, driven by margin expansion, SG&A discipline and same-store sales growth. Improved merchandising and sourcing led to a 160 bps drop in COGS. 

Operating cash flow rose to $15.6 million due to inventory reductions, while capex declined, boosting free cash flow. With $90.8 million in cash and no debt, Cato maintains robust liquidity and financial flexibility. Same-store sales rose 9% in Q2 despite 65 fewer stores, reflecting higher productivity and merchandising gains. 

However, risks persist: tariff costs are rising, e-commerce remains under 5% of sales, and accelerated store closures suggest structural headwinds. The company also suspended its dividend and shows limited credit segment growth. Trading at just 0.48X P/B vs. 6.52X for its sub-industry, valuation reflects these challenges. 

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

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Otis Worldwide Corp. (OTIS) and NRG Energy, Inc. (NRG).

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>>>