Monday, October 6, 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 Microsoft Corp. (MSFT), Amazon.com, Inc. (AMZN) and Johnson & Johnson (JNJ), as well as a micro-cap stock Willis Lease Finance Corp. (WLFC). 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 >>> Shutdown Continues, Open AI Taps AMD, Fifth Third Buys Comerica

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+24.5% vs. +20.7%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Recently, MSFT introduced its first proprietary AI models, MAI-Voice-1 and MAI-1-preview. 

Microsoft projects Azure growth of 37% for fiscal first-quarter 2026. Strong Office 365 Commercial demand has been propeling Productivity and Business Processes revenue growth. ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. 

Xbox revenues are benefiting from strength across third-party and first-party content offerings. The Zacks analyst expect fiscal 2026 net sales to grow 12.9% from fiscal 2025. However, elevated operating expenses and Azure investments amid intensifying cloud competition remain headwinds.

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

Shares of Amazon.com have outperformed the Zacks Internet - Commerce industry over the past year (+20.8% vs. +19.5%). The company’s top-line is driven by steady momentum in Prime and AWS. Strengthening AWS services portfolio and its growing adoption rate is contributing well to AWS performance. Ultrafast delivery services and expanding content portfolio are beneficial. 

Strengthening relationship with third-party sellers is a positive. Robust advertising business is also contributing well. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus on GenAI is a major plus. The Zacks analyst expect 2025 net sales to grow 10.6% from 2024. 

However, weak third-quarter 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 are overhangs. Elevated operating expenses amid intensifying cloud competition remain headwinds.

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

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+34.1% vs. +10.7%). The company’s Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli. 

Though in the MedTech segment, sales are being hurt due to headwinds in China and competitive pressure in some categories, the Cardiovascular segment is contributing to growth. J&J expects sales growth in both segments to be higher in the second half than in the first. J&J is making rapid pipeline progress and has been on an acquisition spree lately. 

However, the Stelara patent cliff and the impact of Part D redesign are significant headwinds in 2025. J&J’s shares have outperformed the industry this year so far. Estimates are stable ahead of Q3 results. J&J has a positive record of earnings surprises in recent quarters.

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

Shares of Willis Lease Finance have declined -9.4% over the past year against the Zacks Transportation - Equipment and Leasing industry’s decline of -12.7%. This microcap company with a market capitalization of $930.95 million delivered strong Q2 2025 results, with net income up 42% to $60.4 million and EPS rising to $8.43, driven by 88.3% lease utilization and asset monetization. H1 earnings of $77.2 million highlighted operational momentum and scalable margins. 

Revenues grew 30.7% YTD to $353.2 million, led by higher lease rents, a surge in spare parts/equipment sales, and 13% growth in maintenance services. WLFC strengthened liquidity with $596 million ABS issuance and extended credit facilities. Shareholder value is reinforced via a 25-cent dividend and $60 million repurchase program.

However, risks include: operating costs climbed sharply, with technical and G&A expenses pressuring margins; maintenance services continue to generate thin or negative profitability; and consulting remains subscale. Shares are down 34% YTD, trading at 4.7x EV/Sales and 8.9x EV/EBITDA, discounted vs peers. 

(You can read the full research report on Willis Lease Finance here >>>)

Other noteworthy reports we are featuring today include General Dynamics Corp. (GD), Agnico Eagle Mines Ltd. (AEM) and Kinder Morgan, Inc. (KMI).

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>>>