Wednesday, January 15, 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), AbbVie Inc. (ABBV) and Analog Devices, Inc. (ADI), as well as a micro-cap stock Precipio, Inc. (PRPO).  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 >>>

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past six months (+15.2% vs. +14.7%). The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. The company, fueled by persistent increases in payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth.

The Zacks analyst expects revenues to grow 9.1% in fiscal 2025. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

However, elevated operating expenses pose margin challenges. We expect adjusted operating expenses to jump 8.1% in fiscal 2025. It is witnessing a volatile cash volume from the Asia Pacific and U.S. regions. Consumer spending growth is also drying up. Moreover, rising client incentives will affect its adjusted revenues.

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

Shares of AbbVie have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+11.7% vs. -2.2%). The company has successfully navigated Humira's loss of exclusivity by launching two other successful new immunology medicines, Skyrizi and Rinvoq. The drugs are performing extremely well, bolstered by approvals in new indications.

AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. AbbVie has been on an acquisition spree lately in its core space of immunology.

However, the company faces several near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on Imbruvica and slow market growth for Juvederm fillers in the United States and China. AbbVie’s shares have outperformed the industry in the past year. Estimates have declined slightly ahead of Q4 earnings.

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

Analog Devices’ shares have outperformed the Zacks Semiconductor - Analog and Mixed industry over the past year (+16.3% vs. +0.2%). The company is benefiting from strong momentum across the consumer and automotive end markets. Strong momentum across the electric vehicle space on the back of its robust Battery Management System solutions remains a tailwind.

Strong investments in technology and business innovation are contributing well. The solid momentum of the HEV platform across the cabin electronics ecosystem is positive.

Nonetheless, the weak demand environment across multiple end markets remains a major concern. The sluggish communications market due to the broad-based inventory corrections is a major negative. Broad-based weakness in the industrial end market remains a headwind. The ongoing inventory correction is expected to be a headwind for the company in the near term.

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

Shares of Precipio have outperformed the Zacks Medical Info Systems industry over the past year (+15.0% vs. -12.1%). This microcap company with market capitalization of $8.98 million have achieved breakeven in its Pathology arm for two consecutive quarters in 2024, generating $4.6 million in third-quarter revenues, up 17.7% from the second quarter. Its $20 million annual run rate provides stable cash flow to fund R&D without external capital, highlighting operational efficiency.

The Products arm, with 13.9% third-quarter revenue growth, is poised as a high-margin growth engine, leveraging scalable distribution channels. Cash burn fell 75% year over year to $226,000 in the third quarter, supporting financial stability and non-dilutive growth.

Precipio’s focus on diagnostics innovation, digital transformation and market visibility aligns with precision medicine trends. Risks include Products underperformance, reliance on small sales teams, distributor dependency, competitive pressures, macroeconomic factors and regulatory uncertainties.

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

Other noteworthy reports we are featuring today include UnitedHealth Group Inc. (UNH), Constellation Energy Corp. (CEG) and Equinor ASA (EQNR).

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>>>