Monday, June 23, 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 Amazon.com, Inc. (AMZN), The Home Depot, Inc. (HD) and Cisco Systems, Inc. (CSCO), as well as two micro-cap stocks United Homes Group, Inc. (UHG) and The Eastern Company (EML). 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 Look Toward Sunny Climes

Today's Featured Research Reports

Shares of Amazon.com have gained +12.7% over the past year against the Zacks Internet - Commerce industry’s gain of +18.2%. The company’s top line is driven by steady momentum in Prime and AWS. A strengthening AWS services portfolio and its growing adoption rate contributed well to AWS performance. Ultrafast delivery services and expanding content portfolio were beneficial. 

Strengthening relationships 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. 

The Zacks analyst expects 2025 net sales to increase 8.5% from 2024. 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 >>>)

Home Depot’s shares have outperformed the Zacks Retail - Home Furnishings industry over the past year (+2.2% vs. -2.5%). The company’s performance is supported by strong execution across key growth initiatives. Home Depot continues to benefit from its progress in building an interconnected shopping experience, synergies from the SRS acquisition, expansion of its Pro ecosystem, strategic digital investments, and new store openings. 

These factors contributed to robust top-line growth in the first quarter of fiscal 2025, driven by increased engagement in Spring-related purchases and smaller-scale home improvement projects. 

However, HD faces softer demand in big-ticket discretionary categories, reflecting consumer caution amid high interest rates. Margin pressure, currency headwinds, and macroeconomic uncertainty also remain key risks. HD is also navigating a complex global trade environment, with rising tariffs.

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

Shares of Cisco Systems have outperformed the Zacks Computer - Networking industry over the past year (+44.7% vs. +43.5%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Increases in recurring revenue bases bodes well for investors. Its Splunk acquisition enhances the recurring revenue base.

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and makes 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 Systems here >>>)

United Homes’ shares have underperformed the Zacks Real Estate - Development industry over the past year (-37.4% vs. -5.6%). This microcap company with a market capitalization of $193.97 million is facing challenges which include persistent margin pressure, declining orders and execution risk tied to unproven strategies. Despite this, shares trade at deep discounts, suggesting an upside if execution improves.

Nevertheless, United Homes is executing a strategic transformation focused on margin expansion and operational efficiency. A shift toward refreshed home designs, now yielding 24% gross margins, supports profitability and reduces reliance on discounting. UHG’s pre-sale strategy improves margin visibility and working capital efficiency while rebidding efforts and faster build cycles enhances cost control. 

Though volume and margin remain under pressure amid soft demand, UHG is expanding into high-growth Southeastern markets, with a land-light model supporting disciplined capital returns. The recent debt refinancing improves liquidity and reduces dilution risk.

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

Shares of Eastern have underperformed the Zacks Security and Safety Services industry over the past year (-1.3% vs. +6.3%). This microcap company with market capitalization of $142.05 million has risks like elevated SG&A amid restructuring, cyclical reliance on Class 8 OEMs, weak R&D investment, and recent negative cash flow due to working capital drag. Valuation remains attractive at 0.62X EV/S and 6.88X EV/EBITDA versus peers. 

Nevertheless, Eastern Company’s performance is driven by Velvac’s market share gains and operational enhancements in the Class 8 truck segment, including vertical integration and aftermarket expansion. Despite industry softness, Eastern sustains profitability, posting Q1 2025 adjusted EBITDA of $4.6 million and net income of $2 million, with a gross margin of 22.4%. 

A leaner balance sheet and improved working capital reinforce financial flexibility. Strategic manufacturing footprints across the United States, Mexico, and China support tariff agility and local sourcing trends. Capital returns remain robust with a long-standing dividend and a new buyback program.

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

Other noteworthy reports we are featuring today include Shell plc (SHEL), Quanta Services, Inc. (PWR) and Becton, Dickinson and Co. (BDX).

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>>>