Monday, October 27, 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), Alphabet Inc. (GOOGL) and Berkshire Hathaway Inc. (BRK.B), as well as two micro-cap stocks, C&F Financial Corp. (CFFI) and Syntec Optics Holdings, Inc. (OPTX). 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 Pick Up Where They Left Off Last Week

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+24.9% vs. +21.8%). 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 expects 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 Alphabet have outperformed the Zacks Internet - Services industry over the year-to-date period (+37.7% vs. +37.1%). The company is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. Google Cloud’s annual revenue run rate is now more than $50 billion. GOOGL is advancing visual and contextual search capabilities. 

The Circle to Search feature is now active on more than 300 million devices. AI Overviews reach more than 2 billion users per month and are available in above 200 countries across 40 languages. It is now driving above 10% more queries globally. 

On the litigation front, per the latest ruling in the ongoing lawsuit between GOOGL and the DOJ, the former is now required to share Search data with rivals, but need not divest Chrome and Android, providing a much-needed relief. However, stiff competition in cloud computing has been concerning.

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

Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+7.7% vs. +7.2%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility. 

Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. Shares of Berkshire have outperformed the industry year to date. 

However, exposure to cat losses induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire.

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

Shares of C&F Financial have outperformed the Zacks Banks - Southeast industry over the past year (+15.7% vs. +1.1%). This microcap company with market capitalization of $223.18 million offers strong earnings momentum and profitability, with Q2 2025 net income up 54% year over year to $7.8 million and ROE at 14.7%. 

Loan growth remains disciplined at 10.3% annually, supported by geographic expansion and diversified credit exposure. Asset quality is sound, with minimal nonperforming loans (0.07%) and strong reserves (4.85% of loans). Capital strength (Tier 1 ratio 10%) and liquidity ($984 million) underpin dividend sustainability and valuation upside. Shares trade at 0.93X tangible book and 8X earnings. 

However, rising charge-offs (2.42%) in consumer finance, high uninsured deposits (30%) and potential margin compression from rate normalization present near-term risks, alongside competition in auto lending and mortgage volatility.

(You can read the full research report on C&F Financial here >>>)

Syntec Optics’ shares have outperformed the Zacks Technology Services industry over the past year (+77.1% vs. +55.4%). This microcap company with a market capitalization of $104.48 million is strategically positioned in high-growth, high-barrier defense and aerospace markets, producing over 17,000 optics for LEO satellites and rocket fuel actuators. 

Syntec Optics’ expertise in hyperspectral imaging supports advanced military surveillance, with capabilities in nanotech-enabled optics and coatings. Operating from a vertically integrated U.S. facility, Syntec offers agile, end-to-end manufacturing aligned with reshoring and national security priorities. It benefits from strong photonics sector tailwinds, including CHIPS Act incentives. 

However, governance concerns loom with nine material internal control weaknesses, raising risks around financial reliability. Profitability declined in Q2 2025 amid margin pressure and reduced consumer sales, contributing to a net loss. Liquidity is tight, with high leverage, and end-market volatility. Despite a 80% one-year stock gain, valuation remains above industry peers. 

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

Other noteworthy reports we are featuring today include Capital One Financial Corp. (COF), Ford Motor Co. (F) and Martin Marietta Materials, Inc. (MLM).

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>>>