Friday, December 12, 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 Visa Inc. (V), The Charles Schwab Corp. (SCHW) and Amphenol Corp. (APH), as well as two micro-cap stocks Autoscope Technologies Corp. (AATC) and United-Guardian, Inc. (UG). 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, attempting 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 Mixed Ahead of Consequential Week of Data

Today's Featured Research Reports

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+11.1% vs. -8.7%). The company’s strong market position is underpinned by consistent volume-driven growth, acquisitions and technological leadership in digital payments. Expansion in cross-border volumes, rising transactions and investments in AI and stablecoin infrastructure enhance its future prospects.

Total revenue rose 11% YoY in FY25, along with 13% cross-border growth. A robust financial position with ample liquidity and shareholder returns further supports long-term growth. However, it faces rising client incentives and expenses, which can affect margin growth. 

The Zacks analyst expects FY26 adjusted costs to rise nearly 11%. Regulatory pressures and potential legislative changes pose additional risks to its fee structure. While declining cash volumes align with its digital strategy, regional softness warrants monitoring. As such, the stock warrants a cautious stance.

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

Shares of Charles Schwab have gained +21.8% over the past year against the Zacks Financial - Investment Bank industry’s gain of +37%. The company’s expenses will likely remain elevated amid continued investments in marketing, thus hurting the bottom line. The Zacks analyst expects expenses to witness a CAGR of 7% by 2027. The uncertainty about the performance of the capital markets is another major concern. 

Nevertheless, Strategic buyouts (including the deal to buy Forge Global) and branch expansion efforts amid favorable market conditions will likely drive client assets. We estimate total client assets to witness a CAGR of 8.2% by 2027. 

Despite the rate cuts so far along with expectations of more, relatively higher rates and an increased focus on repaying high-cost bank supplemental funding balances will support net interest margin (NIM). A solid balance sheet and liquidity position will enable sustainable capital distribution activities.

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

Amphenol’s shares have gained +88.5% over the past year against the Zacks Electronics - Connectors industry’s gain of +89.8%. The company benefits from a diversified business model that lowers the volatility of individual end markets and geographies. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. 

Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, APH’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and IT Datacom. 

Strong demand for high-speed and power interconnect products, which are critical components in next-gen IT systems, creates long term growth opportunities. APH expects fourth-quarter 2025 earnings to grow between 62% and 65% year over year. Revenues are anticipated to grow in the 39-41% range. However, macroeconomic uncertainty and stiff competition are major concerns. 

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

Shares of Autoscope Technologies have underperformed the Zacks Technology Services industry over the past year (-5.5% vs. +20.6%). This microcap company with a market capitalization of $34.02 million is strengthening its position in the evolving ITS market through a next-generation platform built for AI-driven detection, multi-sensor integration and Smart City readiness, supporting future upgrades and broader use cases. 

Autoscope Technologies’ shift toward data-centric analytics expands long-term market opportunity and deepens customer integration through recurring software revenues. Federal safety initiatives provide multi-year demand tailwinds across its portfolio, while a new long-duration contract in Georgia enhances visibility and diversifies revenue beyond traditional ITS. 

An exclusive distribution agreement with Econolite secures stable market access during product transitions, and a capital-efficient operating model enables sustained innovation without dilution or added leverage.

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

United-Guardian’s shares have underperformed the Zacks Medical - Products industry over the past year (-34.4% vs. -0.5%). This microcap company with a market capitalization of $27.57 million is facing declining profitability, weakened operating leverage and ongoing instability in the cosmetics segment tied to partner and regional exposure. Limited R&D intensity restricts innovation momentum, and rising working capital needs point to operational strain. Persistent tariffs and geographic risks add uncertainty to margin recovery and long-term earnings visibility.

Nevertheless, United-Guardian’s investment case reflects strengths in expanding its pharmaceutical portfolio, particularly through broader formulary access for Renacidin, alongside stable medical products that support baseline revenues. 

Strong cash conversion enables sustained capital returns with a conservative balance sheet. Growing international distribution further reduces concentration risks, while the upcoming Natrajel launch adds a differentiated growth avenue. 

(You can read the full research report on United-Guardian here >>>)

Other noteworthy reports we are featuring today include American Express Co. (AXP), BHP Group Ltd. (BHP) and Trane Technologies plc (TT).

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>>>