Wednesday, July 8, 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 Tesla, Inc. (TSLA), Bank of America Corp. (BAC) and Merck & Co., Inc. (MRK), as well as two micro-cap stocks EVI Industries, Inc. (EVI) and Onfolio Holdings, Inc. (ONFO).  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 >>> Unstable Peace Talks Send Pre-Markets Lower

Today's Featured Research Reports

Shares of Tesla have gained +36.2% over the past year against the Zacks Automotive - Domestic industry’s gain of +45.5%. The company crushed second-quarter delivery estimates, with deliveries also rising sequentially and year over year. Tesla's Energy Generation and Storage business remains a key diversification driver, led by Megapack and Powerwall. 

Tesla’s charging footprint continues to expand alongside its broader services ecosystem, with V4 Supercharging cabinets ramping up production at Gigafactory New York. The automaker continues to position FSD as a software product delivered through its vehicles. 

However, Tesla is entering a heavy investment cycle, guiding for more than $25 billion in capex across 2025-2026 and expecting negative free cash flow through the rest of 2026. Delays to robotaxi expansion into seven U.S. cities and the postponement of the Optimus V3 robot reveal cloud the outlook. Thus, the stock warrants a cautious stance at present.

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

Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+30.6% vs. +30.4%). The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Net interest income (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. 

However, elevated expenses due to investments in technology and franchise expansion will likely hurt the bottom line to an extent in the near term. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern, which might hamper financials.

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

Shares of Merck have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+59.1% vs. +38%). The company’s blockbuster drug, Keytruda, and new products have been driving sales. Animal Health is also contributing to growth. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.

New products, Winrevair, Welireg and Capvaxive, key pipeline progress and expansion of its respiratory and infectious disease and oncology portfolios through the acquisitions of Verona Pharma, Cidara Therapeutics and Terns Pharmaceuticals have improved its long-term growth prospects. 

However, it faces several near-term challenges, including persistent challenges for Gardasil in China, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs. Estimates have risen ahead of Q2 results. Merck has a positive record of earnings surprises in recent quarters.

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

EVI Industries’ shares have underperformed the Zacks Industrial Services industry over the past year (-41.4% vs. +4%). This microcap company with a market capitalization of $206.29 million has seen its SG&A expenses continue to outpace revenue, limiting earnings leverage, while project delays create quarterly volatility. Elevated inventory, weaker operating cash flow and higher debt-funded financing costs remain additional risks. The stock trades at a meaningful discount to peer valuation multiples. 

Nevertheless, EVI's long-term buy-and-build strategy continues to strengthen its competitive position, with growing scale supporting higher gross margins, broader geographic reach and expanding operating capabilities. 

Record fiscal 2026 revenues, despite project timing delays, reflect resilient underlying demand, while a healthy backlog provides visibility for future revenue recognition. Continued acquisitions, including Belenky, deepen market penetration, and growth in recurring revenues through chemical solutions and service offerings enhances earnings quality and customer retention.

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

Shares of Onfolio have underperformed the Zacks Internet - Commerce industry over the past year (-59.8% vs. +2.3%). This microcap company with a market capitalization of $2.77 million is facing challenges by uneven performance across acquired businesses, pressure on the revenue mix, and the need to demonstrate sustainable post-acquisition growth. 

Profitability is further constrained by acquisition-related amortization and impairment risk, elevated financing costs, liquidity pressure, and reliance on external funding. Convertible securities, potential shareholder dilution, and a cryptocurrency treasury strategy add further financial and balance-sheet risk.

Nevertheless, the company’s investment case centers on its strategy of acquiring and integrating online businesses into a shared, AI-enabled operating platform to improve efficiency, expand cross-selling opportunities, and create long-term value through disciplined capital allocation. A stronger capital framework supports renewed acquisition activity and portfolio expansion, while recurring agency services provide a degree of revenue visibility.

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

Other noteworthy reports we are featuring today include Datadog, Inc. (DDOG), Cloudflare, Inc. (NET) and DICK'S Sporting Goods, Inc. (DKS).

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>>>