Thursday, October 23, 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), Wells Fargo & Co. (WFC) and Amgen Inc. (AMGN), as well as two micro-cap stocks IDT Corp. (IDT) and Village Super Market, Inc. (VLGEA). 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 >>> Pre-markets Mostly Lower on Biggest Earnings Day of the Week

Today's Featured Research Reports

Amazon.com’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+18.1% vs. +17.6%). 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 relationships 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 >>>)

Shares of Wells Fargo have gained +33.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +36.2%. The company’s third-quarter 2025 results benefited from an improvement in net interest income (NII), fee income and lower provisions. Its earnings surpassed the estimates in each of the trailing four quarters. 

The Fed's June 2025 removal of the $1.95 trillion asset cap allows growth in deposits, loans and fee-based services. After clearing the 2025 Fed stress test, Wells Fargo raised its dividend, backed by strong liquidity and capital position. Also, strategic investments in talent and technology support long-term growth. 

Yet despite the recent Fed rate cut, NII recovery may remain slow, pressuring near-term revenue growth. The mortgage banking income remains weak amid ongoing mortgage rate volatility. Also, rising technology and compensation costs may weigh on profitability.

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

Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+15.4% vs. +11.1%). The company’s key medicines like Evenity, Repatha and Blincyto and newer medicines like Tavneos and Tezspire, are driving sales, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel. 

New biosimilar launches are also contributing to growth. Amgen has some key pipeline assets with a focus on the obesity candidate, MariTide. Data from studies on MariTide are expected in the fourth quarter. However, increased pricing headwinds and competitive pressure are hurting sales of many products. 

Weakness in some key brands like Otezla and Lumakras creates potential revenue strains. Sales of best-selling drugs Prolia and Xgeva are expected to decline from the second half of 2025 due to biosimilar competition. Estimates have declined ahead of Q3 results. Amgen has a positive record of earnings surprises in recent quarters.

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

Shares of IDT have gained +6.5% over the past year against the Zacks Diversified Communication Services industry’s gain of +10.2%. This microcap company with a market capitalization of $1.25 billion has scalable, high-margin platforms — NRS, BOSS Money and net2phone — which drive sustained EBITDA and cash flow growth. NRS recurring revenues rose 27% with expanding margins and POS growth, positioning for deeper monetization via digital coupons.

BOSS Money’s digital pivot lifted EBITDA, aided by margin expansion and WhatsApp integration. net2phone’s AI rollout supports 54% EBITDA growth and rising ARPU. Core communications remain a cash engine funding growth. Strong liquidity ($253.8 million, no debt) and a 43% EBITDA increase underpin flexible capital returns. 

Risks include working-capital drag, customer concentration, pricing elasticity and rising CapEx intensity. The valuation suggests investors can access strong earnings growth and cash generation at a discounted entry point, offering significant multiple expansion potential.

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

Village Super Market’s shares have gained +15.4% over the past year against the Zacks Retail - Supermarkets industry’s gain of +30.1%. This microcap company with market capitalization of $488.08 million delivered strong FY25 results, with 12% net income growth to $56.4 million, driven by 2.1% same-store sales gains, digital adoption, and pharmacy strength.

Operating margin held firm at 23.95% due to labor and occupancy efficiencies. Strategic store replacements — like the larger-format Watchung and Old Bridge locations — boosted productivity and fulfillment. FY26 includes another replacement store in East Orange. A healthy balance sheet with $110.7 million in cash and reduced debt offers financial flexibility. Dividends remain consistent and sustainable, with a low payout ratio (<25%).

Village’s mix of urban and suburban formats enables targeted customer engagement. Risks include legal disputes with Wakefern, internal cannibalization, labor contract expirations, cybersecurity dependence, and margin pressures from inflation. Shares trade at 0.18x EV/sales vs. 1.22x for peers. 

(You can read the full research report on Village Super Market here >>>)

Other noteworthy reports we are featuring today include RTX Corp. (RTX), Marsh & McLennan Companies, Inc. (MMC) and América Móvil, S.A.B. de C.V. (AMX).

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>>>