Tuesday, April 29, 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 The Home Depot, Inc. (HD), CME Group Inc. (CME) and Airbnb, Inc. (ABNB), as well as a micro-cap stock Park Aerospace Corp. (PKE). 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 >>> Trade Balance in Goods Hits All-Time Record, Plus Q1 Earnings
Today’s Featured Research Reports
Home Depot’s shares have outperformed the Zacks Retail – Home Furnishings industry over the past year (+10.1% vs. +3.2%). 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 >>>)
Shares of CME have outperformed the Zacks Securities and Exchanges industry over the past year (+34.2% vs. +30.4%). The company’s strong market position, driven by varied derivative product lines, bodes well. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a stable global presence are encouraging.
While higher electronic trading volume adds scalability, product innovation and a growing proportion of volume from customers outside the United States have been driving results. Solid liquidity supports wealth distribution to shareholders.
However, escalating expenses due to higher technology costs are likely to put pressure on its margins. Also, its diversified product portfolio is significantly exposed to volatile interest rates, stricter government regulations and limited credit availability in unstable capital and credit markets.
(You can read the full research report on CME here >>>)
Airbnb’s shares have declined -5% over the year-to-date period against the Zacks Leisure and Recreation Services industry’s decline of -13.8%. The company is benefiting from continuous improvements in Nights and Experiences Booked, enabling it to witness a positive trend in its Gross Booking Value.
Growing gross nights booked, owing to solid momentum across high-density urban areas and first-time bookers is a tailwind. Increasing guest demand and continuous recovery in cross-border travel are major positives. Strong momentum in active listings, owing to supply growth across all regions, particularly in Asia Pacific and Latin America, is benefiting the top line.
Moreover, growing awareness around hosting and new features introduced for hosts is a plus. However, greater volatility in travel demands due to macroeconomic uncertainties, rising competition and impacts of geopolitical conflicts remain concerns.
(You can read the full research report on Airbnb here >>>)
Shares of Park Aerospace have underperformed the Zacks Aerospace – Defense Equipment industry over the past year (-2.1% vs. +24.7%). This microcap company with market capitalization of $264.61 million has seen revenues rise of 13.7% YTD, fueled by strong aerospace demand. Positioned in high-growth sectors like commercial, business jet, and military markets, Park benefits from the global expansion of aerospace composites.
Despite inflation and a May 2024 storm, the company maintained 28.1% gross margins and consistent profitability, showcasing strong operational resilience. Park’s debt-free balance sheet, $70M cash position, and robust liquidity support dividends, investments, and growth. Shareholder returns remain attractive with 40 consecutive years of payouts. Strategic exposure to defense spending provides further tailwinds.
However, risks include margin pressure from inflation, heavy reliance on a single customer, inventory build-up, geographic concentration at its Kansas facility, supply chain disruptions at the customer level, and vulnerability to shifts in composite material adoption.
(You can read the full research report on Park Aerospace here >>>)
Other noteworthy reports we are featuring today include Philip Morris International Inc. (PM), 3M Company (MMM) and América Móvil, S.A.B. de C.V. (AMX).
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
Home Depot’s (HD) Interconnected Strategy to Boost Sales
Improving Clearing and Transaction Fees Aid CME Group (CME)
Airbnb (ABNB) Banks on Strong Nights & Experiences Bookings
Featured Reports
Safety and Industrial Segment Aids 3M (MMM) Amid Forex Woes
Per the Zacks analyst, 3M will benefit from robust momentum in the Safety and Industrial unit, led by strength in the roofing granules business. However, forex woes remain concerning for the company.
Subscriber Momentum Aids America Movil (AMX), Forex Woes Ail
Per the Zacks analyst, America Movil’s performance is benefiting from an uptick in broadband client base and wireless subscribers. FX volatility might hinder its top-line growth.
Hartford (HIG) Rides On Growing Premium, High Expenses Ail
Per the Zacks analyst, growth in earned premiums will lead to higher profits for Hartford Financial. However, rising operating expenses remain a concern.
Acquisitions Fuel Quest Diagnostics (DGX), High Debt Worries
The Zacks analyst is impressed with Quest Diagnostics’ recent string of acquisitions driving solid growth across its physician channel. Yet, mounting debt over cash balance poses liquidity concerns.
Halozyme’s (HALO) ENHANZE Drug Delivery Technology Aid Growth
Per the Zacks Analyst, Halozyme’s collaboration deals with large pharma companies related to ENHANZE technology, drives revenues growth. Over dependence on partners for revenues remains a concern.
Expanding User Base, Content Portfolio Aids SiriusXM (SIRI)
Per the Zacks analyst, SiriusMX is benefiting from strength in subscriber base backed by a solid content portfolio and expanded podcast efforts.
EchoPark Segment to Drive Sonic (SAH) Amid Debt Woes
Sonic’s used car segment EchoPark is boosting the company’s overall profits. However, high long-term debt-to-capitalization of 62% concerns the Zacks analyst.
New Upgrades
Philip Morris (PM) Benefits from Strong Smoke-free Revenues
Per the Zacks analyst, Philip Morris’ smoke-free transition keeps it well-positioned for growth. Smoke-free products generated 42% of the company’s net revenues in the first quarter of 2025.
Golar LNG (GLNG) Benefits From Dividends & Share Buybacks
The Zacks analyst likes the shareholder-friendly measures adopted by Golar LNG (GLNG). Such efforts boost investor confidence and the company’s bottom line.
Rayonier (RYN) Rides on Solid Portfolio & HBU Developments
Per the Zacks analyst, a solid timberland portfolio and focus on unlocking the long-term value of its HBU development and rural property portfolio are likely to support Rayonier.
New Downgrades
Increasing Tariffs are Likely to Hurt Enphase Energy (ENPH)
Per the Zacks analyst, Enphase Energy is likely to lose from trade tensions between the United States and China that have led to increased tariffs and trade restrictions.
High Capital Spending to Hurt YPF Sociedad’s (YPF) Cash Flow
YPF will likely need to continue spending heavily to maintain growth & support major infrastructure projects like the VEMOS pipeline. This will hurt its cash flows, which concerns the Zacks analyst.
Rising Costs, Overdependence Risks Hurt Apollo (APO) Growth
Per the Zacks analyst, Apollo’s mounting expense base will hurt its bottom-line growth. Also, over dependence on the Retirement Services business might adversely affect its financials.
Zacks Names #1 Semiconductor Stock
It’s only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it’s positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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CME Group Inc. (CME) : Free Stock Analysis Report
America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report
3M Company (MMM) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Park Aerospace Corp. (PKE) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
