Friday, January 24, 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 Cisco Systems, Inc. (CSCO), Abbott Laboratories (ABT) and The Coca-Cola Co. (KO). 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

Cisco’s shares have outperformed the Zacks Computer - Networking industry over the past year (+31.2% vs. +23.9%). The company’s business model has evolved with subscriptions accounting for more than half of its total revenues. Increases in its recurring revenue base bodes well for investors. Its Splunk acquisition enhances its recurring revenue base. 

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and making it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio. 

However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition.

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

Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+21.3% vs. +18.6%). The company’s pipeline is unlocking new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. 

The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Within Nutrition, despite softness in its international pediatric segment, Abbott is regaining market share banking on a strong Adult Nutrition business. 

Yet the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also add to the worry. 

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

Coca-Cola’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+6.3% vs. -4.6%). The company experiences positive business trends, as evident by its strong track record of beating expectations. In third-quarter 2024, the company exceeded sales and earnings estimates for the seventh consecutive quarter, with earnings showing year-over-year improvement. 

Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. KO is well-poised to benefit from its marketing and innovation strategies, and growing digital investments. It has provided an optimistic view for 2024. 

It expects organic revenue growth of 10% for 2024, with comparable EPS to grow 5-6%. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.

(You can read the full research report on Coca-Cola here >>>)

Other noteworthy reports we are featuring today include Fiserv, Inc. (FI), 3M Company (MMM) and Discover Financial Services (DFS).

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>>>