Friday, October 24, 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 Mastercard Inc. (MA), Netflix, Inc. (NFLX) and Citigroup Inc. (C), as well as two micro-cap stocks Oil-Dri Corporation of America (ODC) and Perma-Pipe International Holdings, Inc. (PPIH). 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 Soar on Softer CPI Numbers 

Today's Featured Research Reports

Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the year-to-date period (+10.2% vs. -4.6%). The company’s acquisitions and collaborations are helping the company to grow addressable markets and drive new revenue streams. Net revenues rose 16% year over year in the first half of 2025. 

The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. It paid a dividend of $1.4 billion in the first half of 2025. 

However, MA's dividend yield is lower than the industry average. The Zacks analyst expects adjusted operating expenses to grow 15.6% year over year in 2025. Rebates and incentives increased 14% year over year in the first half of 2025. Also, the stock is overvalued compared to the industry. As such, the stock warrants a cautious stance.

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

Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the past year (+46.2% vs. +45.5%). The company reported third-quarter 2025 earnings of $5.87 per share, missing estimates by 14.8% due to a $619 million Brazilian tax expense. Revenue rose 17.2% year-over-year to $11.51 billion, driven by membership growth and advertising gains. 

KPop Demon Hunters became its most-watched film ever at 325 million views. Operating margin reached 28%, below the 31.5% guidance due to the tax issue. Netflix doubled its ad revenue while expanding AI integration across content creation. 

NFLX raised its full-year free cash flow forecast to $9 billion from $8-8.5 billion. For the fourth-quarter 2025, Netflix projects $11.96 billion in revenue with 16.7% growth, featuring major releases including Stranger Things' final season and NFL Christmas games. However, stiff competition from streaming players like Apple and Disney+ are headwinds.

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

Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the year-to-date period (+43.3% vs. +28.4%). The company’s third-quarter 2025 results benefited from higher net interest income (NII) and solid non-interest revenues, with earnings surpassing estimates for four straight quarters. Despite the expectations of two additional rate cuts by the year-end, stabilizing funding costs and modest loan growth should support NII growth. 

Citigroup’s transformation initiatives, including consumer banking exits, cost reductions and operational streamlining, position revenues to exceed $84 billion in 2025. Expansion into private credit strengthens diversification, while a solid capital base supports shareholder returns. 

However, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Also, lingering asset-quality pressures and rising expenses remain key risks.

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

Shares of Oil-Dri Corporation of America have outperformed the Zacks Chemical - Diversified industry over the past year (+77.8% vs. -25.2%). This microcap company with a market capitalization of $895.28 million is positioned for durable, margin-accretive growth driven by renewable diesel filtration and premium pet products. 

The fluids purification unit reached record FY25 revenue of $105 million (more than 22% year over year), supported by strong biofuel demand and U.S. incentives. The Ultra Pet acquisition added $13.5 million in sales and higher-margin crystal litter, offsetting clay category weakness. B2B revenues rose 21% to $183 million with record performance across agriculture, fluids, and animal health, expanding operating income 31% to $59.8 million. 

Overall, fiscal 2025 operating income grew 32% to $68.2 million on disciplined pricing, favorable mix, and cost control. With $50.5 million in cash, low leverage, and a 16% dividend hike, ODC maintains balance sheet strength to fund innovation, M&A, and shareholder returns.

(You can read the full research report on Oil-Dri Corporation of America here >>>)

Perma-Pipe International’s shares have outperformed the Zacks Steel - Pipe and Tube industry over the past year (+126.9% vs. +21.7%). This microcap company with market capitalization of $230.84 million has approval by Saudi Aramco unlocks direct access to one of the world’s largest pipe coating markets, aligning with its strategy to expand in high-value energy infrastructure. A $2.4 million contract in Qatar and facility development reinforce its MENA growth. 

Financially, H1 2025 revenues rose 32% YoY to $94.6 million, with net income up 23%, showcasing margin strength. A record $30M in Q3 project wins enhances backlog visibility and global demand validation. With $17.3 million in cash and $17.9 million in unused credit, Perma-Pipe can fund expansion. 

However, G&A costs rose 47% YoY, unbilled receivables surged and short-term debt increased, straining liquidity. A higher effective tax rate and unresolved internal control weaknesses pose ongoing risks. Despite these, shares are up 91% YTD and trade at attractive EV/Sales and EV/EBITDA multiples versus the industry. 

(You can read the full research report on Perma-Pipe International here >>>)

Other noteworthy reports we are featuring today include Stryker Corp. (SYK), Analog Devices, Inc. (ADI) and Vertex Pharmaceuticals Inc. (VRTX).

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>>>