Thursday, August 21, 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 Amazon.com, Inc. (AMZN), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT), as well as a micro-cap stock Fossil Group, Inc. (FOSL). 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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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 >>> Rotation Continues on Big Morning for Retail Earnings

Today's Featured Research Reports

Shares of Amazon.com have gained +3% over the year-to-date period against the Zacks Internet - Commerce industry’s gain of +11.8%. The company reported strong second-quarter results with revenues and earnings beating estimates. Top-line gained from solid growth across North America, International, and AWS segments. 

Strengthening its AWS services portfolio and its growing adoption rate contributed well to AWS performance which grew 17.5% to $30.8 billion. Ultrafast delivery services and expanding content portfolio were beneficial. Strengthening relationships with third-party sellers was a positive. Robust advertising business contributed well. Prime services showed robust momentum with 12% growth. 

However, the stock fell 7% after-hours due to weaker Q3 operating income guidance of $15.5-20.5 billion and concerns about margin pressure from heavy AI investments totaling $100+ billion in capital expenditure plans.

(You can read the full research report on Amazon.com here >>>)

Salesforce has underperformed the Zacks Computer - Software industry over the year-to-date period (-26.2% vs. +17.3%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.

Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line. Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams.

Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. The Zacks analyst estimates suggest that Salesforce revenues are expected to witness a CAGR of 9.1% through fiscal 2025-2028.

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

Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+22.3% vs. +6%). The company’s strong pipeline is opening up new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. 

Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. The company is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales through 2025. Within Nutrition, despite softness in international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business. 

Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions, tariffs and foreign exchange also add to the worry.

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

Fossil’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the year-to-date period (+86.9% vs. -12.7%). This microcap company with market capitalization of $169.96 million has strengthened its balance sheet via a $150 million revolver due 2030 and debt exchange extending maturities to 2029, reducing refinancing risk and enhancing liquidity. 

Despite a 16% sales decline in Q2 2025, gross margins rose to 57.5% and adjusted operating income reached $4 million, reflecting cost discipline, reduced promotions and channel optimization. Management guides for further margin gains as SG&A savings and licensing efficiencies take hold. Digital-first strategies — including influencer-led campaigns and full-price e-commerce — are boosting traffic and profitability. 

The turnaround plan targets $30 million in FY25 savings through supply chain, pricing and vendor initiatives. However, revenue contraction, weak demand in Europe/China, tariff headwinds and intense competition pose risks. Valuation remains compelling at 0.21X EV/sales and 1.27X P/B against industry/sector multiples. 

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

Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), BCE Inc. (BCE) and Church & Dwight Co., Inc. (CHD).

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>>>