Monday, February 24, 2025

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 Alibaba Group Holding Ltd. (BABA), Pfizer Inc. (PFE) and MercadoLibre, Inc. (MELI), as well as a micro-cap stock SIFCO Industries, Inc. (SIF). 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 and attempts 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 Bouncing Back from Dismal Friday

Today's Featured Research Reports

Alibaba’s shares have outperformed the Zacks Internet - Commerce industry over the past year (+66.5% vs. +32.1%). The company’s Q3 fiscal 2025 results benefited from the monetization of Taobao and Tmall Group, cloud businesses and AI-integrated products. BABA is riding on strong momentum in its international commerce retail business, driven by strength in AliExpress’ Choice. 

Growing international commerce wholesale business, thanks to strength in cross-border-related value-added services, is a tailwind. Expanding China's wholesale commerce business is a positive. Robust local consumer services and Cainiao logistics services are further driving top-line growth. 

However, non-GAAP earnings of $2.93 per ADS fell short of estimates, suggesting a complex growth narrative. Current market valuations, with the stock trading at multi-year highs, suggest limited immediate upside potential.

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

Shares of Pfizer have declined -0.2% over the past year against the Zacks Large Cap Pharmaceuticals industry’s decline of -1.4%. The company beat fourth-quarter estimates for both earnings and sales. Pfizer’s non-COVID operational revenue growth improved in 2024, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products from Seagen. 

Huge profits from its COVID products strengthened its cash position. Seagen’s acquisition has strengthened its position in the oncology market. Continued growth in non-COVID sales and significant cost-reduction measures should drive profit growth.

However, with the end of the pandemic, sales of Pfizer’s COVID products have declined steeply. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products face patent expirations. 

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

MercadoLibre’s shares have gained +31% over the past year against the Zacks Internet - Commerce industry’s gain of +32.1%. The company reported impressive fourth-quarter 2024 results, wherein both revenues and earnings improved on a year-over-year basis. Accelerating commerce and fintech revenues contributed well. Rising gross merchandise volume (GMV) was a major positive.

Increasing total payments volume (TPV), courtesy of the robust Mercado Pago, aided the company’s top-line growth. Strong momentum across Brazil and Mexico was a tailwind. Increasing demand for the company's advertising services was another positive. Growing momentum across the MELI+ loyalty program and its expanding credit card offerings are acting as tailwinds. 

However, rising e-commerce competition from players like Amazon and Rakuten remains a concern. Weakening macro conditions in Argentina is a headwind.

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

Shares of SIFCO have gained +12.2% over the past year against the Zacks Aerospace - Defense Equipment industry’s gain of +23.7%. This microcap company with market capitalization of $19.98 million achieved a 20.5% revenue increase in fiscal 2024, reaching $79.6 million from $66.1 million in fiscal 2023, driven by strong demand in aerospace and energy. 

Profitability improved, with EBITDA loss narrowing to $0.7 million from $4.4 million, while adjusted EBITDA turned positive at $0.8 million. A $114.4 million backlog supports future growth, especially as demand for defense and maintenance, repair and overhaul (MRO) rises. 

However, interest expenses surged 208.9% to $3.1 million, and operating losses persist at $5.2 million despite revenue gains. Margins remain thin at 7.5%, constrained by supply chain disruptions and labor costs. Intense competition, limited innovation in emerging aerospace technologies and cyclical industry exposure pose further risks. Financial flexibility remains a concern, with cash flow challenges.

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

Other noteworthy reports we are featuring today include Anheuser-Busch InBev SA/NV (BUD), Altria Group, Inc. (MO) and Constellation Energy Corp. (CEG).

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>>>

Today's Must Read

Alibaba (BABA) Gains From International Commerce Businesses

Pfizer's (PFE) New Products Can Drive Sales Growth in 2025

MercadoLibre (MELI) Gains From Total Payment Volume Growth

Featured Reports

Altria (MO) Benefits From Strategic Pricing Initiatives
Per the Zacks analyst, Altria is benefiting from robust pricing actions. During fourth-quarter 2024, higher pricing strategies aided revenues across the Smokeable Products and Oral Tobacco categories.

Live Nation (LYV) Banks on Ticketmaster Systems, Costs High
Per the Zacks analyst, Live Nation is likely to benefit from pent-up demand for live events, Ticketmaster systems and sponsorship business. However, elevated operating expenses is a concern.

High Rates, Fee Income Aid State Street (STT), Expenses Ails
Per the Zacks analyst, relatively higher rates, business servicing wins, buyouts and global footprints will support State Street. Yet, rising costs and a tough operating backdrop are key headwinds.

Cincinnati Financial (CINF) Benefits From Commercial Lines
Per the Zacks analyst, consistent progress at the Commercial Lines segment backed by solid premiums earned contributes to revenue growth of Cincinnati Financial. However, high costs weigh on margins.

Strategic Buyouts Aid Hologic (HOLX), Macro Woes Stay
The Zacks analyst is upbeat about Hologic's recent acquisitions, including Endomagnetics and Gynesonics, strongly boosting its revenue growth. Yet, macroeconomic volatilities may hurt its operations.

High Rates, Loans Aid F.N.B. Corp. (FNB), Asset Quality Weak
Per the Zacks analyst, solid loans, diverse revenue, a strong balance sheet alongside relatively high rates will likely aid F.N.B. Corp.'s financials. Yet, weak asset quality and high costs are woes.

Northern (NOG) Enhances Margins via Operational Efficiencies
The Zacks analyst believes that Northern's non-operated model and operational efficiencies improve margins, but risks from commodity price fluctuations and debt burdens persist.

New Upgrades

AB InBev (BUD) Premiumization & Other Efforts Progress Well
Per the Zacks analyst, AB InBev has been gaining from pricing actions, premiumization and revenue-management initiatives. The expansion of its Beyond Beer portfolio also bodes well.

Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output

Solid Momentum in DIET Sector to Benefit MRC Global (MRC)
Per the Zacks analyst, MRC Global is poised to benefit from several contract wins in the DIET sector, driven by solid pipeline of projects from carbon-based energy to alternative forms of energy.

New Downgrades

Competition & Nil Dividend Payout Hurt Clean Harbors (CLH)
Per the Zacks analyst, intense competition lowers Clean Harbors' pricing power, increases operational expenses and reduces market share. A nil dividend payout discourages dividend-seeking investors.

Gentex (GNTX) Faces Margin Pressure & Competitive Risks
As per the Zacks Analyst, rising costs, heavy reliance on key customers and fierce competition threaten Gentex's profitability, with pricing concessions adding further pressure in 2025.

Leveraged Balance Sheet & Stiff Rivalry Ails Blackbaud (BLKB)
Per the Zacks analyst, Blackbaud's faces stiff competition from companies that provide software and related services in the non-profit sector. Leveraged balance sheet is added concern.

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Pfizer Inc. (PFE) : Free Stock Analysis Report

Constellation Energy Corporation (CEG) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report

MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report

SIFCO Industries, Inc. (SIF): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research