Tuesday, October 20, 2026

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including SAP SE (SAP), Accenture plc (ACN) and Moody's Corp. (MCO), as well as a micro-cap stock Peoples Bancorp of North Carolina, Inc. (PEBK). 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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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 >>> Pre-Markets Down, Housing Remains at Recessionary Levels

Today's Featured Research Reports

Shares of SAP have underperformed the Zacks Computer - Software industry over the past year (-18.4% vs. -9.1%). The company lowered its non-IFRS operating profit outlook to €11.8-€12.2 billion, reflecting a more than €100 million impact from the Dremio and Prior Labs acquisitions. Geopolitical risks in the Middle East remain a potential headwind.

Nevertheless, AI strategy is strengthening SAP's competitive edge, despite broader macro uncertainty. More than 90% of SAP's 50 largest deals include AI and SAP BDC, indicating a strong second-half outlook. Indirect channel is outperforming the direct cloud business, reflecting the success of its go-to-market transformation. 

New RISE with SAP and GROW with SAP offerings gained traction, driven by the adoption of its AI-led ERP migration toolchain. SAP announced a €10 billion share buyback through 2027. Following the Sapphire event, Suite and Joule Work saw oversubscribed beta demand, reinforcing confidence in its third-quarter launch.

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

Accenture’s shares have declined -2.1% over the past year against the Zacks Computers - IT Services industry’s decline of -15.5%. The company’s discretionary spending remains vulnerable to economic uncertainty and pricing competition. AI-driven efficiencies are reshaping delivery models and workforce needs. 

Elevated acquisition spending and financing costs add execution risk, while federal contracting remains sensitive to policy changes despite a recent recovery. These opportunities and risks support a Neutral recommendation.

Nevertheless, Accenture’s investments in AI, cloud, data and cybersecurity support growing demand for enterprise transformation. Large-deal bookings and recurring Managed Services revenue improve revenue visibility and client reach, while acquisitions expand capabilities. Healthy free cash flow supports investment and shareholder returns. 

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

Shares of Moody's have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+0.2% vs. -27.2%). The company’s earnings have beaten the Zacks Consensus Estimate in each of the trailing four quarters. It benefits from a leading credit-ratings franchise, recurring analytics revenue and broader workflow integration. 

Healthy issuances and growing demand for decision-grade intelligence will likely drive revenues. Portfolio simplification and restructuring will improve efficiency, while cash generation is likely to support continued capital returns. 

Still, the ratings business remains sensitive to capital-market activity and revenue mix, which can make growth uneven. Investment in technology, product development and sales keeps expenses elevated, while the expanded restructuring program adds near-term cash costs. Competition across ratings, data and workflow tools requires sustained execution.

(You can read the full research report on Moody's here >>>)

Peoples Bancorp of North Carolina's shares have outperformed the Zacks Banks - Southeast industry over the past year (+43% vs. +15.6%). This microcap company with a market capitalization of $239.68 million has an investment case supported by margin expansion, loan growth, a stronger deposit mix and ample liquidity. 

Lower funding costs and continued lending activity are supporting net interest income, while a predominantly core-deposit base provides funding stability. Sound capital preserves flexibility for growth and credit needs. However, faster loan expansion has increased provisioning, non-performing assets have edged higher and real estate exposure warrants monitoring. 

Softer appraisal activity continues to pressure fee income, while rising operating costs have constrained profitability gains. Interest-rate shifts and securities valuation losses also remain risks. The valuation presents a balanced picture, suggesting some upside if operating momentum strengthens, though current pricing leaves less margin of safety should earnings or credit trends weaken.

(You can read the full research report on Peoples Bancorp of North Carolina here >>>)

Other noteworthy reports we are featuring today include Nucor Corp. (NUE), Tenet Healthcare Corp. (THC) and Toast, Inc. (TOST).

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>>>