Wednesday, December 10, 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 Broadcom Inc. (AVGO), Exxon Mobil Corp. (XOM) and Johnson & Johnson (JNJ), as well as two micro-cap stocks Investors Title Co. (ITIC) and Friedman Industries, Inc. (FRD). 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 Remain "Wait & See" Ahead of Fed Decision

Today's Featured Research Reports

Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+121.4% vs. +74.3%). The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy. 

Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that supports large-scale AI deployments with improved performance and efficiency. Broadcom expects fourth-quarter fiscal 2025 AI revenues to jump 66% year over year to $6.2 billion. The acquisition of VMware has benefited Infrastructure software solutions.

As of the fiscal third quarter, roughly more than 90% of Broadcom’s largest 10,000 customers have adopted VCF. However, gross margin in the fiscal fourth quarter is expected to contract sequentially. High debt level is a headwind.

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

Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+10.3% vs. +9%). The company is advancing key oil projects in the Permian Basin and the Stabroek Block offshore Guyana, boosting production and efficiency. Exxon Mobil is also expanding into cleaner energy, with a major low-carbon hydrogen plant in Texas and progress in advanced plastic recycling plants. 

The company’s low debt exposure positions it to navigate market cycles with ease. XOM reported better-than-expected third-quarter earnings driven by higher oil equivalent production volumes and higher natural gas prices.  

However, its upstream business is highly vulnerable to commodity price volatility. ExxonMobil plans to scale back capital spending, particularly in emerging low-carbon ventures, citing early-stage market uncertainty. It also flagged risks to its Baytown hydrogen project, which depends on U.S. tax incentives and the presence of a sustainable market.

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

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+41.7% vs. +8.6%). The company’s Innovative Medicine unit is showing a growth trend, driven by key products like Darzalex, Tremfya and Erleada and continued uptake of new launches, like Spravato, Carvykti, and Tecvayli. 

The MedTech segment showed improved operational growth across several key businesses like Cardiovascular, and Surgery in the past two quarters. J&J expects sales growth in both segments to be higher in 2026. J&J has also rapidly advanced its pipeline this year that will help drive growth through the back half of the decade. 

However, the Stelara patent cliff, the impact of Part D redesign and MedTech China issues are significant headwinds in 2025. The uncertainty around the unresolved legal issues lingers.

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

Shares of Investors Title have underperformed the Zacks Insurance - Property and Casualty industry over the past year (-5.6% vs. +5.9%). This microcap company with market capitalization of $456.83 million is facing persistently high agent commissions, reduced investment gains, §1031 exchange risks, and growing post-retirement liabilities pose constraints. The stock trades at a discount to peers (EV/sales of 1.26X vs. 2.37X industry). 

Nevertheless, Investors Title presents a compelling investment case with strong operating leverage and disciplined capital management. For the first nine months of 2025, net income rose 21.8% YoY to $27.7 million, with EPS climbing to $14.59, driven by margin expansion and tight cost control. Q3’s 16.7% after-tax margin underscores improved profitability. 

Revenues rose 8.3% to $203.2 million, led by growth in title premiums and a 26.6% surge in non-title services, enhancing diversification. A special dividend of $8.72/share and consistent quarterly payouts highlight robust liquidity and shareholder alignment. Strategic acquisitions bolster direct operations and geographic reach.

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

Friedman Industries’ shares have outperformed the Zacks Metal Products - Procurement and Fabrication industry over the past year (+14.8% vs. +13.9%). This microcap company with market capitalization of $130.65 million is expanding scale and geographic reach through the Century Metals buyout, adding higher-value processing and access to Florida and Latin American markets. 

The Sinton facility is now its most profitable asset, driving strong flat-roll volume and pricing power. Tubular has returned to profit and adds diversification, but remains structurally low-scale and cost-sensitive. Flat-roll is scaling with pricing power and diverse end markets, yet margins stay volatile with HRC declines. 

While acquisitive growth, strong liquidity and disciplined SG&A support long-term leverage, risks include elevated inventory tied to HRC prices, weaker hedge protection, higher ABL-driven leverage and limited operating leverage. Valuation suggests investors are pricing in significant cyclicality and execution risk, offering upside if integration succeeds and margins normalize.

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

Other noteworthy reports we are featuring today include Synchrony Financial (SYF), Trimble Inc. (TRMB) and Aptiv PLC (APTV).
 

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>>>