Friday, March 20, 2026

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 NVIDIA Corp. (NVDA), Caterpillar Inc. (CAT) and KLA Corp. (KLAC), as well as a micro-cap stock Frequency Electronics, Inc. (FEIM). 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 >>>


Today's Featured Research Reports

NVIDIA’s shares have outperformed the Zacks Semiconductor - General industry over the past year (+49.3% vs. +48.3%). The company is benefiting from the strong growth of artificial intelligence (AI) and high-performance accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues. 

The continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with more than 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicle space. 

However, a limited supply of Blackwell GPUs may hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins. The U.S.-China tech war and rising competition from AMD remain major concerns.

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

Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the past year (+104.2% vs. +99%). The company continues to post revenue growth, driven by higher volumes across all segments. Caterpillar returned to earnings growth in the fourth quarter of 2025 (albeit a modest 0.4%) after five quarters of declines.

This is a notable achievement given the ongoing tariff headwind. This is expected to persist into 2026, with management projecting a $2.6 billion impact. A record backlog of $51.2 billion should support future sales. 

The Construction Industries segment stands to benefit from rising construction activity in the United States and globally, while Resource Industries will gain from steady commodity demand.

In Power & Energy, sustainability initiatives and data-center investments are driving demand. Caterpillar’s focus on building aftermarket parts and service-related revenues (which generate high margins) will aid growth.

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

KLA’s shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+110.5% vs. +52.9%). The company is benefiting from strong demand for leading-edge logic, high-bandwidth memory (HBM) and advanced packaging, which is driving market share growth in the semiconductor industry. 

Accelerating investment in AI infrastructure bodes well for KLA’s prospects. Advanced packaging exceeded $950 million in 2025, reflecting 70% year-over-year growth. KLA now expects mid-to-high teens in calendar 2026. Its robust portfolio and its leadership in process control systems are enabling customers to manage increasing design complexity. The services business is performing well. 

KLA is well-positioned to capitalize on AI advancements, with AI driving demand for higher-value wafer processing and more complex designs. However, extended U.S. export controls on China and tariff-related uncertainties are concerns.

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

Shares of Frequency Electronics have outperformed the Zacks Instruments - Control industry over the past year (+152.3% vs. +8.2%). This microcap company with a market capitalization of $421.43 million presents a mixed investment profile. Positively, backlog visibility has strengthened, with funded backlog rising to ~$83 million and an additional $45 million in awards. The business mix is improving, with government/defense revenue now ~65% of total, enhancing durability. 

Expanding exposure to proliferated satellite constellations and a more balanced two-segment structure (FEI-NY and FEI-Zyfer) support longer-term growth and reduced cyclicality. Multiyear contracts further improve revenue visibility. 

However, profitability has deteriorated, with operating income and margins declining due to unfavorable mix shifts and weaker satellite revenues. The high-margin satellite segment has contracted sharply, pressuring earnings quality. Liquidity is also tight, with minimal cash reserves. Despite strong stock performance over the past year, valuation appears elevated versus historical levels. 

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

Other noteworthy reports we are featuring today include Ciena Corp. (CIEN), Arthur J. Gallagher & Co. (AJG) and CenterPoint Energy, Inc. (CNP).

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>>>