Wednesday, March 26, 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 Tesla, Inc. (TSLA), The Home Depot, Inc. (HD) and Boston Scientific Corp. (BSX), as well as two micro-cap stocks Frequency Electronics, Inc. (FEIM) and Bridger Aerospace Group Holdings, Inc. (BAER). 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 >>> Pre-Markets Stay Flat a Week Ahead of Tariffs
Today’s Featured Research Reports
Tesla’s shares have outperformed the Zacks Automotive – Domestic industry over the past year (+59.7% vs. +14%). The company’s electric vehicle (EV) business is under pressure from pricing challenges and fierce competition, with 2024 marking its first-ever annual delivery decline. CEO Musk’s divided attention and growing political controversies have investors questioning whether Tesla is still his top priority.
Further, Tesla expects operating expenses to rise this year, squeezing profitability. Having said that, Tesla’s long-term growth prospects remain strong, driven by its thriving Energy Generation & Storage segment, expansive Supercharger network and AI advancements.
Tesla’s robust balance sheet, with a high liquidity buffer, supports continued innovation and expansion. Progress in the autonomous vehicle domain, including plans to launch robotaxi services in 2025 bode well. Thus, investors should retain Tesla stock for now.
(You can read the full research report on Tesla here >>>)
Shares of Home Depot have declined -3.8% over the past year against the Zacks Retail – Home Furnishings industry’s decline of -6.9%. The company’s stocks are driven by a top-line recovery, supported by SRS contributions, stronger-than-expected demand, broad-based category growth, and positive Pro sales.
Home Depot delivered better-than-expected sales and EPS in fourth-quarter fiscal 2024, with year-over-year improvements. The company is advancing its “One Home Depot” plan, focusing on supply chain expansion, technology investments, and digital enhancements. The interconnected retail strategy remains a key growth driver, ensuring a seamless shopping experience. HD expects the business momentum from late 2024 to carry into 2025.
However, HD continues to see soft engagement for big-ticket discretionary categories, resulting in soft sales. Also, higher interest rates, soft margins and ongoing macroeconomic uncertainties pose risks.
(You can read the full research report on Home Depot here >>>)
Boston Scientific’s shares have outperformed the Zacks Medical – Products industry over the past year (+48.1% vs. +8.3%). The company is seeing strength across target markets despite macroeconomic concerns and related cost inflation. Strong worldwide demand for its MedSurg and Cardiovascular lines, traction in United States and outside for its the next generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers.
The Pain and Brain franchisees are expected to gain solid traction in 2025 banking on strong execution of core growth strategies. The Electrophysiology arm continues to gain momentum on sustained adoption of FARAPULSE PFA.
The 2025 guidance indicating strong organic growth over 2024 builds confidence in the stock. On the flip side, mounting costs due to worldwide geopolitical issues are major concerns. FX headwinds are expected to impact the company’s top line in 2025.
(You can read the full research report on Boston Scientific here >>>)
Shares of Frequency Electronics have outperformed the Zacks Instruments – Control industry over the past year (+70.1% vs. -2%). This microcap company with market capitalization of $157.24 million has delivered a strong performance, with revenues rising 25.5% to $49.8 million and net income rising to $20.5 million for the nine months ended Jan. 31, 2025, driven by satellite program momentum. Gross margin expanded to 45.4% on improved execution and mix.
A $73 million funded backlog (65% convertible in 12 months) supports near-term visibility, reinforced by $23 million in recent contract wins for aerospace and defense applications. Satellite-related revenues now comprise 58% of total sales, reflecting successful penetration into high-growth space markets. FEIM is also investing in quantum sensing aligned with U.S. defense priorities.
However, risks include a $1.3 million operating cash outflow, declining cash reserves and a shrinking backlog. Heavy reliance on government contracts and minimal commercial exposure further constrain long-term resilience.
(You can read the full research report on Frequency Electronics here >>>)
Bridger Aerospace’s shares have underperformed the Zacks Aerospace – Defense industry over the past year (-75.1% vs. -3.7%). This microcap company with market capitalization of $65.06 million is facing risks which include high debt, seasonal revenue concentration, low backlog visibility and rising maintenance costs. International expansion and tech-focused acquisitions offer diversification, though execution risk remains.
BAER is currently undervalued relative to its industry peers, with potential for growth if fundamentals continue to improve. Nevertheless, Bridger Aerospace posted record 2024 results, with revenues rising 47.8% to $98.6 million and adjusted EBITDA reaching $37.3 million. The company also achieved a positive operating cash flow of $9.4 million for the first time.
Structural shifts toward year-round operations, driven by extended wildfire seasons, are expanding its revenue base. It operates the only U.S. fleet of Super Scoopers in a supply-constrained market, supported by long-term government contracts and new international growth via Spanish Scoopers.
(You can read the full research report on Bridger Aerospace here >>>)
Other noteworthy reports we are featuring today include iRobot Corp. (IRBT), Regeneron Pharmaceuticals, Inc. (REGN) and Manulife Financial Corp. (MFC).
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>>>
