Thursday, February 19, 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 UnitedHealth Group Inc. (UNH), Honeywell International Inc. (HON) and Shopify Inc. (SHOP), as well as a micro-cap stock Optex Systems Holdings, Inc. (OPXS). 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 >>> Solid Reports This Morning for Jobless Claims & Earnings

Today's Featured Research Reports

Shares of UnitedHealth have declined -3.9% over the past six months against the Zacks Medical - HMOs industry’s decline of -4.6%. The company is facing rising medical costs which have pushed MCR to 89.1% in 2025, while elevated debt and interest expenses strain financial flexibility. Despite the share price fall over the past year, it is currently overvalued compared with the industry average. As such, the stock warrants a cautious stance.

Nevertheless, UnitedHealth Group’s fourth-quarter earnings beat estimates. It has shown steady revenue growth, driven by Optum and UnitedHealthcare. Its strong market position and expansion initiatives, amid rising healthcare demand, support long-term growth.

Optum remains a key driver via pharmacy services, tech integration and government solutions. Commercial membership also grew, aiding margins despite headwinds in government programs. Cash flow remains strong, with significant shareholder returns.

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

Honeywell’s shares have outperformed the Zacks Diversified Operations industry over the past six months (+18.6% vs. +1.4%). The company’s strength in the commercial aviation and building automation businesses augurs well. The Aerospace segment is particularly strong, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation OEM and aftermarket businesses is aiding the segment. 

Honeywell also continues to reward shareholders, which adds to the stock’s appeal. While acquisitions have expanded its product range and geographic reach, they have increased the company’s balance sheet debt significantly as well. 

However, persistent weakness in the Industrial Automation segment, due to a lower demand environment, is worrisome. Also, the company has been dealing with increasing operating costs, which might hurt its margins and profitability. Foreign currency translation remains an overhang.

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

Shares of Shopify have underperformed the Zacks Internet - Services industry over the past six months (-12.7% vs. +43.1%). The company faces gross margin pressure due to higher hosting costs, the three-month paid trial program, and the expanded PayPal partnership, which carries lower margins.

Nevertheless, Shopify’s prospects are benefiting from an expanding merchant base. New merchant-friendly tools like Shop Minis, Shop Cash, and Sign in with Shop along with Shop Pay solutions are helping SHOP win merchants regularly. The company’s investment in AI-driven tools, such as Catalog, Universal Cart, and Sidekick, is helping merchants improve customer engagement and streamline operations. 

Shopify’s expanding international footprint with strong growth in Europe is a key catalyst. A rich partner base is helping SHOP expand its merchant base. Strong free cash flow margin reflects solid liquidity and supports its share repurchase program.

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

Optex Systems’ shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past six months (+20.1% vs. +18.6%). This microcap company with a market capitalization of $87.34 million is demonstrating strengthening demand momentum, with Q1 FY26 orders rising 31.7% YoY to $7.9 million, driven by a doubling of periscope bookings and sharp growth in optical assemblies. 

Recent multi-year contract awards totaling more than $6 million extend production visibility into 2027, supporting revenue durability. Quarterly revenues increased 11.6% to $9.1 million, led by a 55.9% surge in the Richardson segment, which now represents 58% of sales. Liquidity remains solid, with $5.8 million in cash, $21.2 million in working capital and no revolver borrowings. 

However, gross margins declined and operating income fell sharply due to mix pressure and higher G&A. Backlog decreased to $37.9 million, with notable softness in periscopes and laser filters. Shares have significantly outperformed over the past year and trade at 1.93X EV/sales and 10.89X EV/EBITDA, discounts to industry. 

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

Other noteworthy reports we are featuring today include Barclays PLC (BCS), Manulife Financial Corp. (MFC) and Edwards Lifesciences Corp. (EW).

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>>>