Thursday, July 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), Caterpillar Inc. (CAT) and The Charles Schwab Corp. (SCHW), as well as a micro-cap stock Elite Pharmaceuticals, Inc. (ELTP). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Morning Headlines Defy Expectations, but Pre-Markets Sell

Today's Featured Research Reports

Cisco’s shares have outperformed the Zacks Computer - Networking industry over the year-to-date period (+18.2% vs. +17.7%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Increase in recurring revenue base bodes well for investors. 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 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 here >>>)

Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the year-to-date period (+19% vs. +18.7%). The company’s Energy and Transportation segment has shown improved volume and margin performance in the past few quarters, helping offset weaker results in the Resource Industries and Construction Industries segments. This will continue through the rest of 2025, which, along with a solid first quarter 2025-end backlog of $35 billion, should support its top line. 

However, higher labor costs and the uncertainty regarding tariffs are concerning. Going forward, the Construction Industries segment will gain from increased construction activities in the United States and globally. Resource Industries will be supported by commodity demand. 

The Energy & Transportation segment will gain on strong demand across all applications. Caterpillar’s focus on aftermarket parts and service-related revenues (which generate high margins) will aid growth. 

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

Charles Schwab’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+16.2% vs. +12.2%). The company’s second-quarter 2025 results were aided by higher net interest revenues (NIR). Relatively higher interest rates and an increased focus on repaying high-cost bank supplemental funding balances will likely support net interest margin (NIM) expansion in the quarters ahead. 

Strategic acquisitions and favorable market conditions are likely to aid client assets growth in the near term. However, operating expenses are likely to remain elevated in light of continued investments in marketing and advertising alongside compensation costs. 

Subdued trading revenue growth is worrisome because of the volatile nature of the capital markets amid macro uncertainties. Nonetheless, a solid balance sheet and liquidity position will likely enable sustainable capital distributions for the company.

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

Shares of Elite Pharmaceuticals have outperformed the Zacks Medical - Drugs industry over the past six months (+17% vs. +2.1%). This microcap company with a market capitalization of $588.87 million is capitalizing on a large, under-penetrated ADHD market via its December 2024 launch of Lisdexamfetamine (Vyvanse generic), gaining 8–10% market share in a $3.5 billion segment with further upside as quota and coverage ease. 

Its shift to direct sales drove fiscal 2025 revenues up 48.4% to $84 million and operating income up 81.7% to $19.6 million, enhancing margins and cash flow. ELTP maintains leading shares in Adderall IR/ER generics and is expanding via complex formulations and new launches. 

Yet risks include pricing pressure from Vyvanse generics, customer concentration, rising inventory, revenue dependence on Vyvanse and offshore competition. Derivative liabilities and legal overhang on OxyContin also cloud earnings visibility. ELTP’s valuation reflects growth optimism, but also heightens execution risk.

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

Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI), Barrick Mining Corp. (B) and GE HealthCare Technologies Inc. (GEHC).

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>>>