Friday, December 19, 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 Walmart Inc. (WMT), Wells Fargo & Co. (WFC) and Thermo Fisher Scientific Inc. (TMO), as well as two micro-cap stocks Seneca Foods Corp. (SENEA) and NetSol Technologies, Inc. (NTWK). 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 >>> Are the Markets Setting Up for a Santa Claus Rally?

Today's Featured Research Reports

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past six months (+21.3% vs. +19.9%). The company’s performance reflects strong execution across its omnichannel model, with robust store-led fulfillment, solid e-commerce growth and sustained market share gains. 

Third-quarter fiscal 2026 results highlight robust comparable sales, broad-based traffic growth and rapidly expanding higher-margin businesses such as advertising and membership, which represent a meaningful share of operating income. Faster delivery speeds, improved inventory availability and marketplace expansion continue to support e-commerce growth. Management’s raised fiscal 2026 view underscores confidence in sustaining growth. 

However, margin expansion remains constrained by elevated operating costs and tariff risks. Currency volatility, intense competition and an ongoing mix shift toward lower-margin essentials amid macroeconomic uncertainty are also concerns. 

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

Shares of Wells Fargo have outperformed the Zacks Financial - Investment Bank industry over the past six months (+23.7% vs. +22.3%). The company’s earnings surpassed the estimates in each of the trailing four quarters. The Federal Reserve's June 2025 removal of the $1.95 trillion asset cap allows growth in deposits, loans, and fee-based services. 

The bank also gains room to scale fee-based businesses like payment services and asset management, enhancing its revenue mix. 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 cuts, NII recovery may remain slow, pressuring near-term revenue growth. The mortgage banking income remains weak amid ongoing mortgage rate volatility. Also, rising expense base may weigh on its profitability.

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

Thermo Fisher Scientific’s shares have outperformed the Zacks Medical - Instruments industry over the past six months (+43.5% vs. +16.9%). The company continues to strengthen its foundation by consistently advancing its growth strategy. The company’s latest round of innovations supports scientific breakthroughs, advances precision medicine and greater lab productivity for customers. 

Thermo Fisher is embedding OpenAI’s capabilities into its products and services to make an even bigger impact for customers and enhance productivity. Strategic acquisitions, such as the newly added Solventum’s Purification and Filtration Business, further enhance its offerings. 

The Zacks’ model forecasts a 5.1% CAGR growth in the company’s revenues through 2025-2027. Meanwhile, a highly leveraged balance sheet poses liquidity concerns. Shifting U.S. policies have weighed on the academic and government end-market clients, affecting its sales. Currency woes add to the worry. 

(You can read the full research report on Thermo Fisher Scientific here >>>)

Shares of Seneca Foods have outperformed the Zacks Food - Miscellaneous industry over the past six months (+26.2% vs. -7.8%). This microcap company with market capitalization of $771.74 million benefits from resilient global demand for affordable, shelf-stable foods, with first-half fiscal 2026 sales up 3.7% and strong volume growth led by canned and frozen vegetables, which remain more than 82.5% of sales. 

Improved harvest yields, pack efficiency and structural cost controls are supporting margin normalization, as high-cost inventory rolls off. Deleveraging, lower interest expense and ample liquidity have strengthened the balance sheet, while the Green Giant shelf-stable acquisition enhances branded scale and mix. 

Yet, margin gains are heavily influenced by LIFO credits, masking underlying FIFO cost pressure and earnings volatility. Elevated inventories increase working-capital risk and variable-rate debt maintains sensitivity to rates. Valuation is compelling, offering upside if normalized margins and cash flow durability are sustained.

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

NetSol Technologies’ shares have outperformed the Zacks Computer - Software industry over the past six months (+7.1% vs. -2.1%). This microcap company with market capitalization of $36.57 million operates in a large, underpenetrated global asset finance and leasing software market undergoing ongoing digital transformation. Its AI-enabled, modular Transcend Platform is seeing growing adoption among OEMs, captives, and financial institutions. 

NetSol Technologies’ transition to a SaaS and cloud-first model is improving predictability. Investments in AI, including Check AI and Transcend AI Labs, enhance product differentiation and scalability, while partnerships across China and Southeast Asia reinforce regional positioning. 

Balancing the opportunity are ongoing risks, including the structural decline of high-margin license revenue, margin pressure from rising SG&A and FX volatility, and earnings sensitivity to currency movements. High customer concentration, uneven services growth, and working capital pressure continue to weigh on near-term profitability as the SaaS transition progresses.

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

Other noteworthy reports we are featuring today include McDonald's Corporation (MCD), Uber Technologies, Inc. (UBER) and Infosys Limited (INFY).

Director of Research

Sheraz Mian

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>>>