Friday, June 27, 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 Berkshire Hathaway Inc. (BRK.B), Netflix, Inc. (NFLX) and Toyota Motor Corp. (TM), as well as two micro-cap stocks Crimson Wine Group, Ltd. (CWGL) and Cemtrex (CETX). 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 >>> PCE Mostly In-Line, Pre-Markets Rally Again

Today's Featured Research Reports

Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+19.4% vs. +19.2%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility. 

Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. 

However, exposure to cat loss induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire.

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

Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+46.8% vs. +34.7%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention.

NFLX's advertising tier now accounts for more than 55% of new sign-ups in available markets. NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. 

The 2025 content slate with returning hit shows like Squid Game, Wednesday and Stranger Things hold promise. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind.

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

Toyota Motor’s shares have declined -14.2% over the past year against the Zacks Automotive - Foreign industry’s decline of -17.0%. The company’s operating profits in the current fiscal year are expected to take a big hit due to material prices and tariffs, along with investment in human resources and growth areas. High R&D expenses and capital expenditures are likely to limit the company’s near-term margins and cash flows. The stock warrants a cautious stance now.

Nevertheless, the surge in hybrid adoption is boosting Toyota’s sales. The RAV4 model, with hybrid variants that make up about half of Toyota’s sales, is America's top-selling SUV. Upbeat outlook for fiscal 2026 sales sparks optimism.

Toyota Motor aims to lower hydrogen costs by promoting its use in commercial vehicles. It plans to sell its hydrogen-powered units externally, encouraging broader adoption. Its investor-friendly moves also spark optimism.

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

Shares of Crimson Wine have underperformed the Zacks Beverages - Alcohol industry over the past year (-9.4% vs. -5.7%). This microcap company with market capitalization of $111.37 million is facing downside risks which includes margin pressure from inventory write-downs, declining Wholesale volume, export disruptions from Canada trade tensions, and unresolved cybersecurity litigation. Elevated inventories and softening demand could weigh on near-term profitability.

However, Crimson Wine Group offers a resilient investment case anchored by its premium, estate-driven wine portfolio across key U.S. AVAs and strong vertical integration. Its diversified revenue streams — spanning Wholesale, Direct-to-Consumer (DTC), and export channels — provide stability amid demand shifts. 

Margin expansion is supported by a favorable sales mix and sustainable vineyard practices. The DTC segment remains structurally profitable, with growing e-commerce offsetting wine club attrition. Climate-resilient operations and prudent capital management enhance long-term continuity.

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

Cemtrex’s shares have underperformed the Zacks Electronics - Miscellaneous Components industry over the year-to-date period (-62.9% vs. -11.1%). This microcap company with market capitalization of $1.9 million is witnessing liquidity constraints and reliance on episodic, project-based revenues impair visibility and limit strategic flexibility. Shareholder dilution and mixed margin dynamics remain key risks, despite recent profitability improvements.

Nevertheless, Cemtrex, through Vicon, is expanding in the $83 billion AI-driven surveillance and infrastructure markets with its NEXT camera platform, gaining traction in education and prison security. In second-quarter fiscal 2025, Security revenues surged 110% year over year with 52% gross margins and $4.3 million operating income, while AIS grew 13.2% on infrastructure demand and solid margin contribution. 

Cemtrex’s AI-driven portfolio (NEXT, Anavio) supports a shift to higher-margin, recurring revenues. Cemtrex’s current valuation reflects a steep market discount, suggesting a potential upside if execution stabilizes.

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

Other noteworthy reports we are featuring today include Constellation Energy Corp. (CEG), Dell Technologies Inc. (DELL) and Howmet Aerospace Inc. (HWM).

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>>>