Tuesday, October 27, 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 Alphabet Inc. (GOOGL), ExxonMobil Holdings Corp. (XOM) and Toyota Motor Corp. (TM), as well as two micro-cap stocks Waterstone Financial, Inc. (WSBF) and AXIL Brands, Inc. (AXIL). 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 Up on Rotation Back into AI

Today's Featured Research Reports

Alphabet’s shares have outperformed the Zacks Internet - Services industry over the past year (+19% vs. +15%). The company’s AI-led product cycle is strengthening Search, Cloud and subscriptions, while broader enterprise adoption and flexible infrastructure models support long-term monetization. 

Search and YouTube remain durable cash generators, and Cloud is deepening customer relationships across AI, data and security. Alphabet’s differentiated silicon and long-term infrastructure contracts may improve returns on AI investment. 

These positives are offset by rising capital intensity, weaker free cash flow and a larger debt load. Advertising concentration, legal remedies and intense AI competition also create uncertainty around margins and returns. Higher infrastructure spending could weigh on near-term cash generation. With stronger Cloud economics balanced by investment and regulatory risk, the shares present an even risk-reward profile.

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

Shares of ExxonMobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+63.8% vs. +59.4%). The company’s outperform case rests on a base of low-cost, long-life production and an integrated operating model that converts scale into cash generation. The Permian and Guyana provide visible paths for upstream expansion, while Golden Pass broadens access to global gas demand. 

Proprietary drilling, reservoir technology and enterprise-wide cost reductions support higher productivity and more durable margins. Investment in specialty materials and higher-value products adds another avenue for earnings growth beyond conventional fuels. 

Disciplined capital spending and low leverage preserve flexibility through changing markets. Together, these advantages support investment, dependable dividends and share repurchases, with management's longer-term growth plan offering scope for greater earnings power and shareholder value.

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

Toyota Motor’s shares have declined -6.9% over the past year against the Zacks Automotive - Foreign industry’s decline of -24.1%. The company’s investment case is tempered by expectations for lower fiscal 2027 operating income due to higher labor, depreciation and R&D costs. Persistent weakness in China, elevated leverage and Middle East uncertainty also pose risks. Thus, the stock warrants a cautious stance.

Nevertheless, Toyota is well positioned to benefit from rising hybrid adoption, with expanding HEV sales, higher electrified vehicle penetration and continued investments in next-generation battery capacity supporting long-term demand. 

Toyota Motor’s growing value-chain businesses, including financing and connected services, provide stable recurring earnings, while a higher fiscal 2027 sales outlook and manufacturing expansion in key markets reinforce growth prospects.

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

Waterstone Financial’s shares have outperformed the Zacks Financial - Savings and Loan industry over the past year (+29.3% vs. +28.1%). This microcap company with a market capitalization of $355.59 million saw its first-half 2026 net interest income rise 19.7% as net interest margin expanded to 3.00% from 2.54%, reflecting higher asset yields and lower funding costs. These improvements helped drive a 34.3% increase in net income and EPS growth. 

Mortgage banking also returned to profitability, supported by a 15.7% increase in originations and higher non-interest income, adding diversification to earnings. Strong regulatory capital, $383.1 million of unused FHLB borrowing capacity and a healthy lending pipeline provide flexibility to fund further growth. Dividends and ongoing share repurchases should additionally support shareholder returns and per-share metrics. 

However, higher credit-loss provisioning, real estate concentration, deposit competition and expense growth remain key risks. Still, the stock trades at 11.5X earnings, below industry, sector and S&P 500 multiples.

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

Shares of AXIL Brands have gained +1.3% over the past year against the Zacks Consumer Products - Staples industry’s gain of +8.1%. This microcap company with a market capitalization of $37.80 million is expanding its retail and distribution network, which provides opportunities to increase its presence in the hearing enhancement and protection market. 

The XCOR II launch strengthens its product portfolio, with encouraging initial demand supporting further growth. Strong liquidity and no borrowings provide flexibility to fund product launches, inventory and channel expansion internally. Reviv3's partnership-led relaunch offers additional growth potential without significantly diverting resources from the core hearing business. 

Healthy underlying gross margins indicate resilient product economics despite increasing retail and wholesale exposure. Continued investment in research, product development and intellectual property supports innovation and portfolio diversification. Together, these factors position AXIL Brands to pursue sustainable growth while maintaining financial flexibility.

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

Other noteworthy reports we are featuring today include Wells Fargo & Co. (WFC), Thermo Fisher Scientific Inc. (TMO) and Okta, Inc. (OKTA).

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>>>