Tuesday, August 5, 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 Morgan Stanley (MS), PepsiCo, Inc. (PEP) and Comcast Corp. (CMCSA), as well as a micro-cap stock Gencor Industries, Inc. (GENC). 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 Slightly Up on Mostly Good Q2 Earnings

Today's Featured Research Reports

Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+56.6% vs. +53.9%). The company’s second-quarter 2025 results reflected a solid trading business. Efforts to focus on wealth and asset management operations, inorganic expansion/strategic alliance and relatively high rates are expected to aid the top line. 

Despite near-term headwinds in the investment banking (IB) business, the company will benefit from a strong pipeline. The Zacks analyst project IB fees and total revenues to grow 3.9% and 3.6%, respectively, in 2025. Operating expenses are likely to stay elevated due to business expansion efforts. We project total non-interest expenses to rise 7% this year.

The ambiguity on the performance of capital markets is a key near-term concern for the company. Though trading revenues are expected to increase going forward, they are less likely to reach the 2021 level anytime soon.

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

Shares of PepsiCo have underperformed the Zacks Beverages - Soft drinks industry over the year-to-date period (-6.4% vs. +5.4%). The company’s PFNA segment remained soft in the second quarter on weak demand and shifting consumer trends. PEP struggled with margin declines, hit by inflation, supply chain costs and tariffs. Foreign currency headwinds and global trade uncertainty are likely to remain persistent drags on PEP’s financial performance.

Nevertheless, PepsiCo’s strong international and North America beverage performance, boosted second-quarter 2025 results. International revenues rose 6%, fueled by growth in both beverages and foods. PBNA posted solid results, led by Pepsi Zero Sugar and innovation in flavor extensions. 

Quaker Foods showed early signs of recovery with innovation and value-pack focus. PepsiCo’s productivity and digital transformation efforts support long-term growth and agility.

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

Comcast’s shares have declined -11% over the year-to-date period against the Zacks Cable Television industry’s decline of -15.7%. The company has been persistently suffering from video-subscriber attrition due to cord-cutting. Broadband prospects are suffering from increased competition from fixed wireless and fiber businesses. 

A leveraged balance sheet is also a major concern for Comcast. Nevertheless, Comcast’s second-quarter results benefited from strong traction in its wireless business, adding 378,000 new lines in the quarter, its best quarter yet. 

Comcast also benefited from its Theme Parks business, driven by the successful opening of Epic Universe in May 2025, and the growing admission rate at its theme parks which drove the segment’s revenues by 18.9% year over year. Peacock’s rapid growth is noteworthy. The addition of NBA coverage in the fall is expected to drive more viewership. 

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

Shares of Gencor Industries have underperformed the Zacks Manufacturing - Thermal Products industry over the year-to-date period (-15.9% vs. -11.6%). This microcap company with a market capitalization of $217.67 million has backlog erosion, margin pressures, tax rate normalization, and unresolved internal control issues, all of which pose risks. The stock offers deep value if execution and order recovery materialize, though earnings quality remains sensitive to non-operating gains.

Nevertheless, Gencor’s resilient backlog of $27.8 million reflects healthy order conversion, supporting near-term revenue visibility. It is well-positioned to benefit from IIJA-driven infrastructure outlays through 2026. Revenue rose 4.4% to $69.6 million in the first half of fiscal 2025, aided by strong equipment sales.

A net cash position of $143.7 million with no debt underpins strategic flexibility. Operating income grew 6.2% despite gross margin compression to 28.8%. Revenue mix and product breadth help mitigate cyclical risk, while record $27.2 million in operating cash flow enhances optionality.

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

Other noteworthy reports we are featuring today include Medtronic plc (MDT), General Motors Co. (GM) and Xylem Inc. (XYL).

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>>>