Tuesday, May 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 Microsoft Corp. (MSFT), Bank of America Corp. (BAC) and Roche Holding AG (RHHBY), as well as a micro-cap stock GSI Technology, Inc. (GSIT). 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 Bounce Back from Monday's Selloff

Today's Featured Research Reports

Shares of Microsoft have declined -3.8% over the past year against the Zacks Computer - Software industry’s decline of -6.5%. The company’s customer concentration risk remains tied to large OpenAI-related Azure commitments. Microsoft confronts intense competition from AWS and Google Cloud and escalating regulatory scrutiny. Capacity constraints persisting through fiscal year-end limit revenue potential despite unprecedented spending.

Nevertheless, Microsoft capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling 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. Azure growth guidance projects Q4 growth of 39-40% at cc, suggesting demand saturation, with customer demand exceeding available capacity. 

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

Bank of America’s shares have gained +30.7% over the past year against the Zacks Financial - Investment Bank industry’s gain of +35.4%. The company’s first-quarter 2026 results were aided by net interest income (NII) growth and strength in trading and investment banking (IB) businesses. Despite lower average rates, NII growth is expected to continue supported by steady loan growth and lower funding costs. 

Bank of America’s expansion strategy by opening financial branches in new and existing markets will boost the top line. Along with this, investments in digital capabilities will enhance client engagement and cross-selling opportunities, likely driving fee income. 

Yet, the company’s shares have underperformed the industry in the past six months. Elevated expenses due to investments in technology and franchise expansion will likely hurt profits. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern.

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

Shares of Roche have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+26% vs. +21.2%). The company performance in the first quarter was weighed down by unfavorable foreign-exchange movements, as weakness in the U.S. dollar adversely impacted international sales. 

Nonetheless, the company’s underlying operational performance remained solid. Strong growth from key products helped offset declining revenues from legacy drugs. The stellar performances of multiple sclerosis drug Ocrevus and ophthalmology drug Vabysmo continue to drive momentum for Roche. 

Growth in hemophilia treatment Hemlibra and breast cancer drug Phesgo also boosted the top line. Roche is looking to diversify its portfolio through acquisitions and collaborations in the wake of declining sales from legacy drugs (Avastin, Herceptin, MabThera and Actemra) due to competition from biosimilars. However, pipeline and regulatory setbacks weigh on the stock. 

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

GSI Technology’s shares have gained +129.7% over the past year against the Zacks Computer- Storage Devices industry’s gain of +519.5%. This microcap company with a market capitalization of $282.61 million is driven by its strengthened capital base, strategic edge AI positioning, and government partnerships. With $70.7 million in cash and no debt, GSI is well-funded to scale R&D and product rollout, especially for its Gemini-II processor, which demonstrated superior power efficiency in edge AI benchmarks. 

GSI Technology is targeting high-growth sectors like drones and mobile robotics with AI chips optimized for low-latency and low-power environments. Government contracts in defense and aerospace validate its technology, while the legacy SRAM business continues to generate stable cash flows. 

However, rising R&D costs, widening operating losses and reliance on early-stage government projects present notable execution challenges. A structural decline in legacy segments poses transitional risk. Valuation appears stretched relative to peers. 

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

Other noteworthy reports we are featuring today include Sandisk Corp. (SNDK), EMCOR Group, Inc. (EME) and BJ's Wholesale Club Holdings, Inc. (BJ).

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>>>