Monday, July 7, 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 Mastercard Inc. (MA), Cisco Systems, Inc. (CSCO) and The TJX Companies, Inc. (TJX), as well as two micro-cap stocks Gencor Industries, Inc. (GENC) and SIFCO Industries, Inc. (SIF). 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 >>> A Relaxing Week Ahead in the Stock Market?

Today's Featured Research Reports

Mastercard’s shares have outperformed the Zacks Financial Transaction Services industry year-to-date (+8.4% vs. +6.7%). The company’s acquisitions are helping it to grow addressable markets and drive new revenue streams. The Zacks analyst expects net revenue to rise 13% year over year in 2025. The accelerated adoption of digital and contactless solutions is providing an opportunity for its businesses to expedite their continued shift to digital. 

Strong cash flow supports its growth initiatives and enables shareholder value-boosting efforts through repurchases and dividends. MA paid a dividend worth $694 million in 1Q25. Its times-interest-earned of 24.2X is above the industry average. 

However, MA's dividend yield is lower than the industry average. We expect adjusted operating expenses to grow 14.8% year over year in 2025. 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 Cisco have outperformed the Zacks Computer - Networking industry over the past year (+54.8% vs. +53.8%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. An increase in its recurring revenue base bodes well for investors. The Splunk acquisition enhances its recurring revenue base as well. 

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in Annual Recurring Revenue (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 service 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 >>>)
TJX’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+13.6% vs. +6.5%). The company has been benefiting from its focus on delivering an exceptional shopping experience and unmatched value to customers every day. A key indicator of its business strength is the consistent increase in customer transactions, which drove a solid comparable store sales increase of 3% in the first quarter of fiscal 2026. 

This steady growth highlights the company’s successful strategy and positions it for long-term sustainability, focusing on customer transactions. The TJX Companies has been strategically positioned to capitalize on the exceptional availability in the marketplace, offering a diverse selection of exciting gifts both in-store and online. 

However, the increase in store wages and payroll costs has raised concerns. Another key challenge the company is facing is the negative impact of unfavorable currency translations.

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

Shares of Gencor Industries have declined -14.4% over the year-to-date period against the Zacks Manufacturing - Thermal Products industry’s decline of -16.2%. This microcap company with a market capitalization of $221.48 million has a strong $72.2 million backlog in fiscal 2024 and continued order inflow underscore resilient demand visibility, aided by infrastructure funding tailwinds from the Infrastructure Investment and Jobs Act (IIJA). 

With 7.7% revenue growth in fiscal 2024, no debt, and $115.4 million in cash and marketable securities, Gencor is well-positioned to invest or return capital. Its diversified revenue mix across equipment, parts and services supports earnings stability and reduces cyclicality, while ongoing cost discipline supports long-term margin potential.

However, margin compression from rising SG&A and competitive pressure, increased reliance on non-operating income, a build-up in contract assets, and material control weaknesses pose risks. The valuation reflects execution concerns despite a solid balance sheet and secular growth levers.

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

SIFCO’s have gained +30.3% over the past year against the Zacks Aerospace - Defense Equipment industry’s gain of +50.6%. This microcap company with a market capitalization of $24.83 million is positioned to capitalize on aerospace and defense tailwinds, with a $129.2 million backlog and exposure to growth areas like unmanned systems and maintenance, repair and overhaul (MRO). 

Operational gains are reducing EBITDA losses; gross margins improved to 6.3% year to date from 2.6% in the comparable prior-year period. Strategic divestiture of European operations and a new $23 million credit facility bolster U.S.-focused execution and liquidity. 

Yet recurring losses, a 9.7% effective interest rate and weak cash flow limit reinvestment capacity. Supply chain pressures and lack of exposure to next-generation platforms (e.g., eVTOL) temper long-term growth. Increased geographic concentration post-divestiture poses additional risks. The stock trades at a steep discount, offering deep value if execution and margin recovery are sustained.

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

Other noteworthy reports we are featuring today include Truist Financial Corp. (TFC), Bayer Aktiengesellschaft (BAYRY) and FUJIFILM Holdings Corp. (FUJIY).

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>>>