Thursday, July 31, 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 Costco Wholesale Corp. (COST), HSBC Holdings plc (HSBC) and Booking Holdings Inc. (BKNG), as well as a micro-cap stock Smith-Midland Corp. (SMID). 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 >>> Economy Heating Up on PCE for June

Today's Featured Research Reports

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+13.9% vs. +7.9%). The company being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers. 

The Zacks analyst expects Costco to register an 11.4% adjusted earnings per share improvement in fiscal 2025 on 7.8% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates. 

A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.

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

Shares of HSBC have outperformed the Zacks Banks - Foreign industry over the past year (+54% vs. +37.7%). The company’s performance is reflecting the success of its Asia pivot strategy. While its second-quarter 2025 results were hurt by higher credit-related charges, business simplification and restructuring initiatives are expected to fuel long-term growth. 

As part of its focus on optimizing returns, the bank is divesting operations in underperforming regions and has exited retail banking in multiple markets. Though these moves position it for improved efficiency, they are temporarily weighing on revenues. This, along with muted loan demand, presents a near-term concern. 

Higher expenses tied to efforts to expand market share remain a headwind. However, a robust capital position, relatively higher interest rates and expansive global footprint will continue to support its financials.

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

Booking Holdings’ shares have outperformed the Zacks Internet - Commerce industry over the past year (+54.4% vs. +29.1%). The company is capitalizing on resilient global leisure travel demand, driven by strong execution of its Connected Trip strategy, accelerating growth in flights and alternative accommodations, enhanced Genius loyalty program, disciplined cost management, and growing presence in Asia. 

In the second quarter of 2025, room nights grew 8% year over year to 309 million, led by solid performance in Europe and Asia, while airline ticket bookings jumped 44%, driven by Booking.com and Agoda. Adjusted EBITDA rose 28% to $2.4 billion with improved margins, and the bottom line increased 32%. 

Reflecting this momentum, the company raised its full-year outlook, citing strong demand and execution. However, rising marketing expenses, up 10.3% year over year, and increasing cloud and personnel costs may weigh on future profitability. 

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

Shares of Smith-Midland have outperformed the Zacks Building Products - Concrete and Aggregates industry over the past year (+4.4% vs. +2.6%). This microcap company with a market capitalization of $186.93 million is driving high-margin, recurring revenue, with Q1 2025 rental income up nearly 9x year over year and gross margin expanding to 30.7%. 

Strong growth in proprietary soundwall and building systems supports diversification and scale. Its asset-light licensing model continues to expand, contributing to resilient margins. Operating leverage is accelerating earnings, with net income tripling amid cost discipline. A fortified balance sheet, improved liquidity, and disciplined working capital management enhance financial flexibility. 

Planned capacity upgrades position the company to meet infrastructure demand. Risks include customer concentration, a shrinking backlog, reliance on one-off high-margin projects, internal control weaknesses, and rising working capital. Declines in core product sales and inflation also threaten margin stability.

(You can read the full research report on Smith-Midland here >>>)

Other noteworthy reports we are featuring today include The Travelers Companies, Inc. (TRV), Ryanair Holdings plc (RYAAY) and Arch Capital Group Ltd. (ACGL).

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>>>