Image Source: 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 UnitedHealth Group Inc. (), Costco Wholesale Corp. (), and International Business Machines Corp. (), as well as a micro-cap stock Smith-Midland Corp. (). 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.Shares of UnitedHealth have declined -6.1% over the past year against the Zacks Medical – HMOs industry’s decline of -9.9%. The company’s top line remains poised for growth on the back of a strong market position, new deals, renewed agreements and expansion of service offerings. The company’s solid health services segment provides diversification benefits.The Government business remains well-poised for growth in the future. Adjusted net earnings per share are anticipated to be in the $29.50-$30.00 band in 2025. A sturdy balance sheet enables investments and prudent deployment of capital via share repurchases and dividend payments.However, membership in its global business continues to be a concern. High operating costs due to rising medical expenses are hurting margins. A debt-laden balance sheet induces an increase in interest expenses. As such, the stock warrants a cautious stance.Costco’s shares have outperformed the Zacks Retail – Discount Stores industry over the past year (+41.1% vs. +25.1%). The company Being a consumer defensive stock, has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.The Zacks analyst expects Costco to register an 11.5% adjusted earnings per share improvement in fiscal 2025 on 6.6% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.Shares of IBM have outperformed the Zacks Computer – Integrated Systems industry over the past year (+41.6% vs. +10.9%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in the Software and Consulting segments. Settlement of ongoing lawsuits with GlobalFoundries will pave the way for future collaboration and exploration of new revenue-generating opportunities.IBM is collaborating with SAP to tap generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms.However, stiff competition in various end markets is straining profits. Stringent cost-cutting efforts to boost margins beyond a certain threshold are likely to impact product quality. Although the company generates significant cash flow, a high debt level can hinder its ability to sustain dividend payout and impact growth initiatives.Smith-Midland’s shares have outperformed the Zacks Building Products – Concrete and Aggregates industry over the past year (+68.6% vs. +0.2%). This microcap company with market capitalization of $233.51 million has demonstrated record revenue growth, driven by increased production volumes across its plants, especially for infrastructure-related projects.In the second quarter of 2024, revenues surged 34% year over year to $19.6 million, with a strong $59.2 million backlog supporting continued expansion. The utility segment also showed robust growth, particularly in the Northern Virginia market. The company is strategically positioned with key infrastructure contracts and a solid financial footing, including $7.3 million in cash and a low debt-to-capitalization ratio.However, concerns include revenue concentration, fluctuating demand in key product lines, exposure to inflation, operational risks and seasonal variability. Rising accounts receivable and the suspension of dividends could strain the company’s cash flow and impact investor sentiment.Other noteworthy reports we are featuring today include TE Connectivity plc (), ResMed Inc. (), and Broadridge Financial Solutions, Inc. ().Top Stock Reports For T-Mobile, Toyota Motor & Vertex PharmaceuticalsMarkets Flat After Big Selloff Day; FDX, NKE Beat On EarningsStock Market Sells Off On New Fed Rate Policy
