Tuesday, May 13, 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 Microsoft Corp. (MSFT), Amazon.com, Inc. (AMZN) and Mastercard Inc. (MA), as well as a micro-cap stock CBL & Associates Properties, Inc. (CBL). 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 >>> CPI Inflation Rate at +2.3%, Earnings Reports Mixed

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+6.8% vs. +4.5%). The company’s Q3 fiscal 2025 earnings and revenues beat estimates, driven by strength in its AI business and Copilot adoption and backed by accelerating growth in Azure cloud infrastructure unit.

Productivity and Business Processes revenues rose due to strong adoption of Office 365 Commercial solutions. ARPU growth was driven by E5 as well as M365 Copilot. Intelligent Cloud revenues were driven by growth in Azure AI services and a rise in AI Copilot business. Focused execution drove non-AI services results aided by accelerated growth in the enterprise customer segment as well as some improvement in scale motions.

Xbox content and services revenues benefited from stronger-than-expected performance in third-party and first-party content. However, higher operating expenses and spending on Azure amid stiff competition in the cloud space remain concerns.

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

Shares of Amazon.com have gained +14.5% over the past year against the Zacks Internet - Commerce industry’s gain of +18.7%. The company’s first-quarter results were driven by Prime and AWS momentum. Strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance.

Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationship with third-party sellers was a positive. Robust advertising business contributed well. Amazon’s expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. Deepening focus on GenAI is a major plus.

However, Amazon announced mixed guidance for the second quarter. High tariffs imposed by President Trump on goods imported from China have cast uncertainty on retailers such as Amazon. AMZN's free cash flow has decreased significantly.

(You can read the full research report on Amazon.com here >>>)

Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+28.8% vs. +24.9%). The company’s first-quarter earnings beat estimates. Its acquisitions are helping the company to grow addressable markets and drive new revenue streams. It expects mid-teens net revenue growth in 2Q25.

The accelerated adoption of digital and contactless solutions is providing an opportunity for its business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. Operating cash flows surged 42.3% year over year in the first quarter of 2025.

However, its dividend yield is lower than the industry average. Steep operating expenses might stress its margins in the future. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.

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

Shares of CBL & Associates Properties have outperformed the Zacks REIT and Equity Trust - Retail industry over the past year (+27% vs. +11.7%). This microcap company with market capitalization of $788.55 million have its balance sheet, driven by non-recourse debt and a $60 million year-over-year net debt reduction, enhances stability and minimizes refinancing risk.

Liquidity remains robust with $276 million in cash and marketable securities, supporting flexibility and a $25 million buyback plan. Asset sales totaling $73.3 million unlocked gains and aided deleveraging. Despite modest same-center NOI declines and tenant closures, leasing momentum persists, with strong new rent spreads and 90.4% occupancy.

A stable $1.50 FFO and $6.98–$7.34 guidance reinforce earnings visibility. While a 12.5–13.3% dividend yield and 18.3% annual growth offer total return appeal, rising expenses, soft tenant sales, sustainability risks and leasing headwinds pose risks. CBL’s valuation suggests relative value for investors seeking undervalued income-generating REITs.

(You can read the full research report on CBL & Associates Properties here >>>)

Other noteworthy reports we are featuring today include Medtronic plc (MDT), Royal Caribbean Cruises Ltd. (RCL) and Xcel Energy Inc. (XEL).

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>>>