Wednesday, May 20, 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 Johnson & Johnson (JNJ), Oracle Corp. (ORCL) and Netflix, Inc. (NFLX), as well as a micro-cap stock Espey Mfg. & Electronics Corp. (ESP). 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 >>> Big Morning for Retail Earnings: TGT, LOW, TJX & More

Today's Featured Research Reports

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+54.3% vs. +27.2%). The company’s Innovative Medicine unit is showing a growth trend, despite loss of exclusivity of Stelara, driven by key products like Darzalex, Tremfya and Erleada and new launches like Spravato, Carvykti and Tecvayli. 

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

The company has “line of sight” to double-digit top-line growth by the end of the decade. However, the Stelara patent cliff, the impact of Part D redesign and MedTech China issues are key headwinds. The uncertainty around unresolved legal issues lingers. 

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

Shares of Oracle have outperformed the Zacks Computer - Software industry over the past year (+16.6% vs. -9.8%). The company’s cloud infrastructure business demonstrates accelerating revenue growth, supported by strategic partnerships and competitive pricing that attract enterprise workload migrations. AI-optimized database capabilities provide technological differentiation, while robust free cash flow generation enables sustained infrastructure investments. 

The integrated solutions strategy strengthens customer retention and drives cross-selling opportunities. However, competition from hyperscalers remains intense, potentially pressuring margins. The ongoing transition from license revenue to subscription models creates near-term earnings volatility. 

Fiscal 2026 guidance indicates continued cloud acceleration, but execution risks around data center capacity expansion warrant monitoring. Shares have underperformed the industry in the past six-month period.

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

Netflix’s shares have underperformed the Zacks Broadcast Radio and Television industry over the past year (-25.2% vs. -11.5%). The company faces intense competition across streaming and short-form platforms, and growth is expected to moderate versus recent years. Foreign exchange exposure and sizable content obligations, alongside a still-elevated debt balance, limit flexibility and raise execution risk for investors.

Nevertheless, Netflix is expanding beyond subscription streaming into a broader entertainment platform, with advertising, live events, games and video podcasts supporting monetization. 

NFLX has set an ambitious target to double its revenues by 2030 and continues to target about $3 billion of advertising revenue in 2026, helped by a larger advertiser base and easier programmatic buying. Content breadth and a global footprint remain key differentiators, while operating margin discipline and rising free cash flow support capital returns over time.

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

Shares of Espey Mfg. & Electronics have outperformed the Zacks Electronics - Military industry over the past year (+75.8% vs. -35.1%). This microcap company with a market capitalization of $180.59 million is supported by a $137 million backlog that provides multi-year revenue visibility and underpins utilization stability across its vertically integrated operations. Despite lower FY26 sales, margins expanded sharply, driving ~50% net income growth as higher-margin defense programs entered production. 

Espey Mfg. & Electronics is positioned to benefit from rising defense modernization spending tied to radar, naval systems, electronic warfare, and UAV applications, while Navy-funded facility upgrades may enhance qualification capabilities and future award competitiveness. A strong balance sheet and sizable dividends further support shareholder returns. 

Risks include sharply weaker new-order activity, customer concentration, weaker operating cash flow due to working-capital build, and dependence on U.S. defense budgets. Valuation multiples sit above historical medians. 

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

Other noteworthy reports we are featuring today include Axon Enterprise, Inc. (AXON), Ameren Corp. (AEE) and Credo Technology Group Holding Ltd. (CRDO).

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>>>