Thursday, October 1, 2026

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Cisco Systems, Inc. (CSCO), Shopify Inc. (SHOP) and Starbucks Corp. (SBUX), as well as a micro-cap stock Smith-Midland Corp. (SMID). 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-Market Futures Up on Strong Jobless Claims

Today's Featured Research Reports

Cisco’s shares have outperformed the Zacks Computer - Networking industry over the past year (+60.8% vs. +59.6%). The company’s prospects are benefiting from broad demand across networking, security and collaboration. AI infrastructure orders, integrated silicon and an end-of-support refresh opportunity support a multi-year networking cycle, while newer security products and Splunk’s recovery broaden the growth base.

Cisco also retains operating leverage and continues to return cash to shareholders. Offsetting these positives, a hardware-led revenue mix is expected to limit gross-margin expansion, while services recovery should remain gradual. Competition across networking and security still requires sustained product execution. 

Acquisition exposure and an elevated valuation leave less room for disappointment. The breadth of durable growth drivers outweighs these execution, margin and valuation risks, supporting the Outperform recommendation.

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

Shares of Shopify have gained +0.1% over the past year against the Zacks Internet - Services industry’s gain of +34.3%. The company’s growth case remains supported by broad merchant gains, deeper payments adoption and expansion across online, offline and B2B channels. AI tools are becoming a larger part of merchant discovery and operations, while Catalog, Sidekick and agentic integrations extend Shopify into emerging commerce surfaces. 

International localization and enterprise wins add runway, and rising free cash flow margins show that investment is being funded with greater operating discipline. Management’s third-quarter outlook points to continued revenue growth and further expense leverage. 

Risks remain from discretionary spending exposure, competition from scaled commerce platforms and a revenue mix that can keep gross profit growth below revenue growth. Even so, Shopify’s widening ecosystem and cash generation support a balanced view.

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

Starbucks’ shares have outperformed the Zacks Retail - Restaurants industry over the past year (+11.4% vs. -13.7%). The company’s prospects are benefiting from improving customer traffic, strong comparable sales and expanding margins. Global comparable sales increased 7.9% in the third quarter of fiscal 2026, driven by transaction and ticket growth. 

North America benefited from stronger traffic, delivery, food attachment and beverage modifications, while International comps improved despite the China model transition. Sales leverage, lower inflation and tariff refunds supported margin expansion, and new store growth added scale. Raised fiscal 2026 guidance and expanding margins improve visibility into the recovery. 

However, restructuring costs, labor investments, unfavorable mix and elevated operating costs remain concerns. Earnings estimates for fiscal 2026 have remained unchanged over the past 60 days.

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

Shares of Smith-Midland have underperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (-34.3% vs. -19.1%). This microcap company with a market capitalization of $120.94 million is facing a growing backlog across barriers, utilities and other precast products provides improved revenue visibility, with additional activity not captured in reported backlog offering further support to the production pipeline.

Nevertheless, Smith-Midland’s investment case is supported by efforts to build a more recurring and diversified revenue base. Expansion of the barrier rental fleet should improve revenue stability and cash-flow characteristics, while the Easi-Set modular building platform can broaden construction exposure and support manufacturing utilization. 

Utility products are emerging as another infrastructure growth avenue, aided by demand from data-center and related projects. The licensing model further extends the company’s geographic reach through a capital-light revenue stream tied to proprietary products. 

(You can read the full research report on Smith-Midland here >>>)

Other noteworthy reports we are featuring today include Canadian Pacific Kansas City Ltd. (CP), NetApp, Inc. (NTAP) and IDEX Corp. (IEX).

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>>>