Monday, January 5, 2026

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 Meta Platforms, Inc. (META), Bank of America Corp. (BAC) and The Procter & Gamble Co. (PG), as well as two micro-cap stocks Espey Mfg. & Electronics Corp. (ESP) and NeurAxis, Inc. (NRXS). 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 >>> Looking Ahead to a New "Jobs Week"

Today's Featured Research Reports

Meta’s shares have outperformed the Zacks Internet - Software industry over the past year (+3.6% vs. +1.1%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. 

META has been leveraging AI to improve the potency of its platform offerings. These services currently reach more than 3.54 billion people daily. Meta Platforms’ growing footprint among young adults, driven by improving recommendations, boosts its competitive prowess. AI usage is making it a popular name among advertisers. This is expected to drive top-line growth. 

Meta Platforms now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which is a concern.

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

Shares of Bank of America have gained +16.2% over the past six months against the Zacks Financial - Investment Bank industry’s gain of +17.3%. The company's net interest income (NII) will likely be aided by decent loan growth, despite rate cuts. The Zacks analyst expects NII to see a CAGR of 5.7% by 2027. 

Plans to open financial centers in new and existing markets, and improve digital capabilities will support the top line. We project total revenues to grow 6.9% in 2025. Yet the volatile nature of the capital markets makes growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth may normalize going forward.

While we expect sales and trading revenues to increase in 2025, the metric will likely decline in 2026. Elevated expenses due to steady investments in its franchise will likely hurt bottom-line growth. The Zacks analyst expects expenses to rise 4.3% in 2025. Weak asset quality is another obstacle.

(You can read the full research report on Bank of America here >>>)

Procter & Gamble’s shares have declined -10.4% over the past six months against the Zacks Consumer Products - Staples industry’s decline of -11%. The company’s strong portfolio, innovations, and productivity efforts reinforce its ability to deliver sustainable growth. Earnings and sales beat the Zacks Consensus Estimate and increased year over year in Q1 fiscal 2026. 

PG expects 1–5% all-in sales growth and flat to up 4% organic sales gains in fiscal 2026, supported by cost savings. We expect organic sales to rise 2% in fiscal 2026. Robust cash flow funds dividends and share buybacks, with $15 billion planned shareholder returns in fiscal 2026. 

PG’s consistent execution positions it well to balance growth, resilience, and shareholder value creation. However, elevated commodity costs, tariff pressures, higher interest expenses, and macroeconomic woes continue to weigh on margins and earnings visibility.

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

Shares of Espey Mfg. & Electronics have outperformed the Zacks Electronics - Military industry over the past six months (+3.5% vs. -32.4%). This microcap company with market capitalization of $137.63 million record $141.1 million backlog, with 72% scheduled through 2028+, ensures revenue visibility despite a 12.9% Q1 FY26 sales decline. 

Gross margin expanded to 35.4%, highlighting strong cost control and product mix advantages. Espey’s core capabilities in rugged power electronics align with growing defense electronics demand amid global modernization trends. A clean balance sheet and consistent dividends, including a $1.00/share payout (4X prior year), underscore financial discipline and cash generation strength. 

Risks include high customer concentration (top 5 = 80% of sales), increased inventories (+18% YoY), and lower order intake relative to FY25. Inflationary pressure and reimbursement-dependent capex introduce near-term volatility. 

(You can read the full research report on Espey Mfg. & Electronics here >>>)

NeurAxis’ shares have outperformed the Zacks Medical Info Systems industry over the past six months (+65.2% vs. -16.2%). This microcap company with a market capitalization of $47.51 million targets a large, underserved gut/brain disorder market with its FDA-cleared IB-Stim neuromodulation system, recently expanded to treat functional dyspepsia (FD), doubling its pediatric addressable market to $8 billion. 

NeurAxis’ non-invasive, drug-free profile, guideline inclusion and growing evidence support differentiation. Rapid reimbursement expansion and a permanent CPT Category I code effective January 2026 should improve provider economics and accelerate uptake. Revenue has grown at double-digit rates, but losses persist amid high spending, margin pressure and reliance on external capital. 

The adult RED diagnostic adds diversification but remains early with execution risk. CPT implementation could unlock a revenue inflection in mid-to-late 2026, but near-term adoption frictions and liquidity pressure may temper upside. Valuation implies high expectations.

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

Other noteworthy reports we are featuring today include Carvana Co. (CVNA), Jabil Inc. (JBL) and NVR, Inc. (NVR).

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>>>