Thursday, May 28, 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 Citigroup Inc. (C), TotalEnergies SE (TTE) and AppLovin Corp. (APP), as well as two micro-cap stocks The Eastern Co. (EML) and Acorn Energy, Inc. (ACFN). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Dump-Truck of Economic Data: PCE, Claims, Goods & More

Today's Featured Research Reports

Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+23.3% vs. +2.7%). The company’s earnings beat estimates in all the trailing four quarters. Improving loan demand and easing funding costs are expected to support net interest income (NII) growth. Ongoing transformation initiatives, including consumer business exits and operational streamlining, are expected to aid revenue growth, with management projecting a 4-5% compound annual growth rate (CAGR) through 2026. 

Citigroup’s expansion into private credit, including the recent partnership with BlackRock-backed HPS Investment Partners, boosts revenue diversification, with a strong capital base supporting shareholder returns. 

However, its rising cost due to business transformation efforts and technological advancement are worrisome. Volatility in fee income and deteriorating asset quality are concerning too.

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

Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past six months (+34.8% vs. +34.1%). The company’s overall production volume was impacted by the Middle East crisis, but its production outside the region and higher oil prices will offset the impact. 

TotalEnergies is gaining from contributions coming from startups, acquired assets, well-spread LNG assets and assets located in the new hydrocarbon-producing regions. The company aims to generate 15-20% of sales from low-carbon business by 2040 and reduce emissions in the process. 

Yet, TotalEnergies operates multiple assets globally, and in some regions, production might be impacted due to security concerns. It remains exposed to acquisition-related risks as these assets contribute a sizable volume to production.

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

AppLovin’s shares have outperformed the Zacks Technology Services industry over the past year (+50.7% vs. +15.6%). The company’s marketplace and model show structural advantages. MAX real-time bidding and Axon upgrades are improving matching and driving share gains, and management is confident into early 2026. 

Strong profitability and cash generation fund AI and self-serve investments and buybacks. Emerging web/e-commerce demand offers a second growth leg as self-serve tools mature. Offsets: e-commerce is early, onboarding is gated, creative automation remains in pilot, and early-year seasonality is a headwind. 

Limited mix disclosure and no annual outlook constrain visibility. Performance marketing is ROI-disciplined, but quarterly noise may persist. With clear assets but proof points ahead, risk-reward is balanced; Street 2026/2027 EPS estimates have edged up recently, and the shares have broadly tracked those changes.

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

Shares of Eastern have outperformed the Zacks Security and Safety Services industry over the past six months (+18.3% vs. -22.9%). This microcap company with a market capitalization of $128.7 million has its investment outlook tied to improving demand recovery entering H2 2026, supported by sequential sales growth and stronger customer order visibility. 

Liquidity remains solid, with positive operating cash flow, lower inventory, improved leverage metrics, and ample borrowing capacity supporting operations, acquisitions, dividends, and buybacks. Management continues investing in automation, ERP upgrades, lean manufacturing, and new product launches to improve efficiency and operating leverage ahead of an industrial recovery. Diversified exposure across transportation and industrial markets adds stability. 

Key risks include margin pressure from poorly priced Big 3 contracts, persistent weakness in packaging demand, tariff-driven cost inflation, and sensitivity to weaker earnings given variable-rate debt and covenant requirements. Valuation remains discounted versus peers on EV/sales metrics. 

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

Acorn Energy’s shares have gained +22.1% over the past six months against the Zacks Electronics - Miscellaneous Products industry’s gain of +45%. This microcap company with a market capitalization of $42.36 million has transitioned toward a high-margin, recurring monitoring model, driving margin expansion and improving revenue visibility through prepaid renewals. While hardware revenue remains volatile, deployments expand the installed base, supporting monitoring growth. 

The telecom contract is shifting from hardware fulfillment to recurring monitoring monetization, while the AIO partnership broadens exposure into telecom, data center and utility infrastructure with potentially larger deal sizes. Product upgrades and lower R&D spending support scalability and operating leverage. 

Risks include hardware cyclicality, long enterprise sales cycles, customer concentration and execution risk tied to the IS/AIO ramp. The valuation suggests investor caution, creating upside potential if recurring monitoring growth and operating leverage continue scaling.

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

Other noteworthy reports we are featuring today include Zscaler, Inc. (ZS), Ralph Lauren Corp. (RL) and Hasbro, Inc. (HAS).

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>>>