Tuesday, March 18, 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 Visa Inc. (V), Johnson & Johnson (JNJ) and Thermo Fisher Scientific Inc. (TMO), as well as a micro-cap stock AMREP Corpo. (AXR). 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 >>> Housing Starts, Imports/Exports Better than Expected

Today's Featured Research Reports

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+17.3% vs. +14.3%). The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. It expects net revenues to grow in low double-digits in fiscal 2025.

Visa is fueled by persistent increases in payments, cross-border volumes and sustained investments in technology, and is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value.

However, elevated operating expenses pose margin challenges. We expect the metric to rise 7.6% year over year in fiscal 2025. It is witnessing a volatile cash volume from the Asia Pacific and U.S. regions. Hence, the stock warrants a cautious stance.

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

Shares of Johnson & Johnson have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+13.4% vs. +7.7%). The company’s Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli.

J&J is making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline. J&J has also made strong progress toward resolving the talc litigation.

However, sales in the MedTech segment have slowed down due to headwinds in Asia-Pacific markets like China and competitive pressure in some categories. The launch of Stelara generics is expected to significantly erode the drug’s sales in 2025. The uncertainty around the talc lawsuits remains.

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

Thermo Fisher Scientific’s shares have underperformed the Zacks Medical - Instruments industry over the past year (-10.6% vs. -7.5%). Due to volatile macroeconomic conditions its operations can be dented. The continuous decline in COVID testing-related demand also adds to the worry. Nevertheless. Thermo Fisher is braving the ongoing tough economic conditions by utilizing the PPI Business System, resulting in strong financial performance.

Thermo Fisher Scientific’s growth strategy has been bolstered by several recent product launches, including a Thermo Scientific Iliad scanning transmission electron microscope and new additions to the Gibco CTS Detachable Dynabeads platform in the fourth quarter.

Thermo Fisher’s continuous efforts to prioritize its partnership with customers to drive innovation and improve patient care bode well. The Zacks analyst expects the company’s revenues to witness a 7.3% CAGR during 2025-2027. Robust solvency is an added advantage.

(You can read the full research report on Thermo Fisher Scientific here >>>)

Shares of AMREP have underperformed the Zacks Real Estate - Development industry over the past year (-9.4% vs. -5.7%). This microcap company with market capitalization of $114.21 million has seen home sale margins fall to 20% for the nine months ended Jan. 31, 2024, from 27% for the nine months ended Jan. 31, 2025, due to rising construction costs. Elevated mortgage rates and affordability concerns may pressure future growth.

AMREP faces risks from land sale concentration, project delays and declining investment asset sales, impacting growth sustainability. Nevertheless, AMREP's net income surged 246.5% to $8.8 million for the nine months ended Jan. 31, 2025, with earnings per diluted share rising from $0.48 to $1.64. Home sales revenue grew 93.3% to $18.4 million, supported by strong demand in New Mexico, with 101 homes in production.

Cash reserves increased to $36.9 million from $29.7 million as of April 30, 2024, while debt remains minimal at $29,000. Land sales rose 16.3% to $18.1 million, but third-quarter fiscal 2025 sales declined 27.9%.

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

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Cintas Corp. (CTAS) and Illinois Tool Works Inc. (ITW).

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

Visa (V) Rides on Increasing Payments Volume Amid High Expenses

J&J's (JNJ) Innovative Medicine Strong, MedTech Slows Down

End Market Strength, Partnerships Aid Thermo Fisher (TMO)

Featured Reports

NextEra (NEE) Gains from Renewable Focus, Steady Investment
Per the Zacks analyst, NextEra's planned long-term investment to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Uniform Rental Unit Aids Cintas (CTAS) Amid Rising Costs
Per the Zacks analyst, Cintas' Uniform Rental & Facility Services unit is driven by penetration of additional products and services into existing customers. High operational costs remain a concern.

Food Equipment Unit Aids Illinois Tool (ITW) Amid Forex Woes
Per the Zacks analyst, Illinois Tool is benefitting from its Food Equipment unit, driven by strength in the institutional end markets in North America. However, forex woes are an added concern.

Eni (E) Banks on New Upstream Projects, Weak Refining Ails
Eni demonstrated resilience in 2024 through strategic growth in upstream business, driven by new project startups. However, weak refining margins worry the Zacks analyst.

Global IT Infrastructure Benefits IQVIA (IQV), Liquidity Low
Per the Zacks Analyst, IQVIA's strong healthcare-specific global IT infrastructure places it firmly in the life sciences space. Low liquidity remains a concern.

Strong Product Portfolio Buoys Optimism for Baxter (BAX)
Per the Zacks analysts, Baxter International is well poised for growth backed by a strong product portfolio. Introduction of new therapies and products likely to drive the topline growth.

Snap-on (SNA) Cost-Saving Actions & Other Efforts on Track
Per the Zacks analyst, Snap-on is on track with its Rapid Continuous Improvement process and cost-reduction initiatives. The company is also focused on enhancing the franchise network.

New Upgrades

Technology, Product Expansion Aid Interactive Brokers (IBKR)
Per the Zacks analyst, proprietary software development efforts, expanding global footprint, relatively higher rates, and product diversification moves will likely aid interactive Brokers' financials.

5G Expansion & Strong Sales Aid Telefonica's (TEF) Prospects
Per the Zacks analyst, Telefonica's robust 5G reach in Spain, Germany, and Brazil is bolstering its market position. Steady mobile handset and retail sales are driving Telefonica Espana's performance.

Emphasis on Toy Business Aids Mattel's (MAT) Performance
Per the Zacks analyst, Mattel benefits from the toy segment's growth, driven by new product innovations, increased retail support, enhanced marketing, and fresh content.

New Downgrades

Weak Robotics and Test Demand Hurt Teradyne's (TER) Prospect.
Per the Zacks analyst, Teradyne is suffering from weakness in System and Wireless Test and a challenging industrial spending environment impacting its Robotics segment.

Rising Expenses & Stiff Competition Hurt Blackbaud (BLKB)
Per the Zacks analyst, Blackbaud's operating expenses are surging due to EVERFI impairment and disposition charges. Also, stiff competition is an added concern.

Exposure to Catastrophe Loss, High Expense Ail Everest (EG)
Per the Zacks analyst Everest Group's exposure to cat loss induces volatility in underwriting profit. Escalating expenses owing to higher incurred losses and loss adjustment expenses weigh on margin.

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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report

NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

Visa Inc. (V) : Free Stock Analysis Report

Johnson & Johnson (JNJ) : Free Stock Analysis Report

Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

Cintas Corporation (CTAS) : Free Stock Analysis Report

AMREP Corporation (AXR): Free Stock Analysis Report

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

Zacks Investment Research