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The Zacks Analyst Blog Highlights Merck, The Southern, Lumentum and Peoples Bancorp of North Carolina
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For Immediate Release
Chicago, IL – June 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck & Co., Inc. (MRK - Free Report) , The Southern Co. (SO - Free Report) , Lumentum Holdings Inc. (LITE - Free Report) and Peoples Bancorp of North Carolina, Inc. (PEBK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for Merck, Southern Company and Lumentum
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 Merck & Co., Inc., The Southern Co. and Lumentum Holdings Inc., as well as a micro-cap stock Peoples Bancorp of North Carolina, Inc.. 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.
Merck's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+53.3% vs. +25.2%). 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.
Merck's 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. This progress has increased confidence that Merck can maintain growth even after Keytruda loses exclusivity.
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.
Shares of Southern Company have gained +7.1% over the past year against the Zacks Utility - Electric Power industry's gain of +23.2%. The company is a leading U.S. electric utility with a stable, recession-resistant business model, benefiting from strong electricity demand growth, particularly from data centers and hyperscale customers, and a robust pipeline exceeding 75 gigawatts of potential projects.
Southern Company is expanding its regulated generation and transmission assets, investing in battery storage and renewable projects, and maintaining a 25-year streak of dividend increases, appealing to income-focused investors.
However, elevated leverage with $67.1 billion in long-term debt, capital-intensive infrastructure needs, exposure to economic slowdowns, regulatory risks, ongoing depreciation charges, and weather-driven earnings volatility limit financial flexibility. Hence, investors are advised to wait for a better entry point.
Lumentum's shares have outperformed the Zacks Communication - Components industry over the past year (+968.3% vs. +313.6%). The company is benefiting from sustained AI and cloud network buildouts, with record fiscal Q3 revenue and expanding profitability as laser chips and cloud transceivers scale.
Management's Q4 outlook calls for another step up in revenue and operating margin, supported by continued EML growth, scale-across components like pump and narrow linewidth lasers, and a ramp in 1.6T transceivers with initial internal CW laser integration. A multiyear OCS purchase agreement and the acquisition of an additional indium phosphide fab, backed by a larger cash balance, extend capacity and visibility, while CPO development moves toward revenue.
However, supply constraints and outsourcing dependence can delay shipments, and ongoing ASP and customer concentration risks remain a headwind. Industrial lasers remain muted and can dilute the mix.
Shares of Peoples Bancorp of North Carolina have outperformed the Zacks Banks - Southeast industry over the past year (+66.1% vs. +15.4%). This microcap company with a market capitalization of $236.97 million has its investment thesis supported by improving earnings power, driven by balance-sheet management, loan growth and a stable deposit franchise. Margin expansion reflects effective asset-liability management and favorable funding dynamics, while loan growth continues to support revenue generation.
Strong capital levels and a conservative dividend policy provide flexibility to support future growth and shareholder returns. However, key risks include rising operating expenses, potential margin compression from higher funding costs and higher credit costs tied to portfolio growth.
Fee income remains sensitive to appraisal-related activity. Valuation reflects investor caution around the sustainability of earnings growth and credit performance. Further upside will depend on sustaining profitability, maintaining credit quality and delivering consistent earnings growth.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Merck, The Southern, Lumentum and Peoples Bancorp of North Carolina
For Immediate Release
Chicago, IL – June 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Merck & Co., Inc. (MRK - Free Report) , The Southern Co. (SO - Free Report) , Lumentum Holdings Inc. (LITE - Free Report) and Peoples Bancorp of North Carolina, Inc. (PEBK - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for Merck, Southern Company and Lumentum
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 Merck & Co., Inc., The Southern Co. and Lumentum Holdings Inc., as well as a micro-cap stock Peoples Bancorp of North Carolina, Inc.. 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 >>>
Today's Featured Research Reports
Merck's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+53.3% vs. +25.2%). 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.
Merck's 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. This progress has increased confidence that Merck can maintain growth even after Keytruda loses exclusivity.
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.
(You can read the full research report on Merck here >>>)
Shares of Southern Company have gained +7.1% over the past year against the Zacks Utility - Electric Power industry's gain of +23.2%. The company is a leading U.S. electric utility with a stable, recession-resistant business model, benefiting from strong electricity demand growth, particularly from data centers and hyperscale customers, and a robust pipeline exceeding 75 gigawatts of potential projects.
Southern Company is expanding its regulated generation and transmission assets, investing in battery storage and renewable projects, and maintaining a 25-year streak of dividend increases, appealing to income-focused investors.
However, elevated leverage with $67.1 billion in long-term debt, capital-intensive infrastructure needs, exposure to economic slowdowns, regulatory risks, ongoing depreciation charges, and weather-driven earnings volatility limit financial flexibility. Hence, investors are advised to wait for a better entry point.
(You can read the full research report on Southern Company here >>>)
Lumentum's shares have outperformed the Zacks Communication - Components industry over the past year (+968.3% vs. +313.6%). The company is benefiting from sustained AI and cloud network buildouts, with record fiscal Q3 revenue and expanding profitability as laser chips and cloud transceivers scale.
Management's Q4 outlook calls for another step up in revenue and operating margin, supported by continued EML growth, scale-across components like pump and narrow linewidth lasers, and a ramp in 1.6T transceivers with initial internal CW laser integration. A multiyear OCS purchase agreement and the acquisition of an additional indium phosphide fab, backed by a larger cash balance, extend capacity and visibility, while CPO development moves toward revenue.
However, supply constraints and outsourcing dependence can delay shipments, and ongoing ASP and customer concentration risks remain a headwind. Industrial lasers remain muted and can dilute the mix.
(You can read the full research report on Lumentum here >>>)
Shares of Peoples Bancorp of North Carolina have outperformed the Zacks Banks - Southeast industry over the past year (+66.1% vs. +15.4%). This microcap company with a market capitalization of $236.97 million has its investment thesis supported by improving earnings power, driven by balance-sheet management, loan growth and a stable deposit franchise. Margin expansion reflects effective asset-liability management and favorable funding dynamics, while loan growth continues to support revenue generation.
Strong capital levels and a conservative dividend policy provide flexibility to support future growth and shareholder returns. However, key risks include rising operating expenses, potential margin compression from higher funding costs and higher credit costs tied to portfolio growth.
Fee income remains sensitive to appraisal-related activity. Valuation reflects investor caution around the sustainability of earnings growth and credit performance. Further upside will depend on sustaining profitability, maintaining credit quality and delivering consistent earnings growth.
(You can read the full research report on Peoples Bancorp of North Carolina here >>>)
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.