Overview of Today’s Research Reports
The Zacks Research Daily offers insights from the analyst team, highlighting new research reports on 16 major stocks. These include SAP SE (SAP), Novo Nordisk A/S (NVO), and Thermo Fisher Scientific Inc. (TMO), as well as the micro-cap stock FONAR Corp. (FONR). The Zacks microcap research is unique in its focus on small and under-the-radar companies, making it a rare resource in the market.
These reports have been selected from over 70 published by the analyst team today. Investors interested in reading more can access all of today’s reports for further details.
Ahead of Wall Street
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Pre-Markets Shrug Off Trade Deadline, FOMC Minutes Out Today
Today’s featured research reports cover several key stocks, offering detailed analysis and insights into their performance and future outlook.
SAP SE (SAP)
SAP shares have outperformed the Zacks Computer – Software industry over the past year, with a gain of +53.6% compared to +13.3% for the industry. The company is gaining momentum in the cloud business, particularly with its Cloud ERP Suite and the growing adoption of “Rise with SAP” and “Grow with SAP” solutions. The steady growth in its cloud backlog is also positive.
SAP remains confident in its growth trajectory, reaffirming its outlook for cloud revenues of €21.6-€21.9 billion for 2025, which represents a 26–28% increase at constant currency from €17.14 billion in 2024. Operating profit growth in the first quarter of 2025 was driven by efficiencies from the successful 2024 transformation program, which aided margins.
However, ongoing softness in the software license and services business continues to impact performance. In the first quarter, software license revenues declined 10% year over year, while services revenue fell 1%. Intense competition in the cloud space remains a concern.
Novo Nordisk A/S (NVO)
Novo Nordisk shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year, with a decline of -50.5% compared to -15.9% for the industry. The company faced setbacks due to its failure to meet weight-loss targets with CagriSema. Intense rivalry in the obesity sector threatens its market share, and patent expiry and pricing pressure across the diabetes market remain challenges.
Despite these issues, Novo Nordisk’s Ozempic and Rybelsus for diabetes and Wegovy for obesity are performing well, driven by increasing demand. Label expansions for these drugs in cardiovascular and other indications are expected to boost sales. The company is addressing supply constraints for Wegovy through significant investments to increase production.
An oral formulation of Wegovy is currently under review by the FDA for obesity, and a higher dose of the injection is under review in the EU. Novo Nordisk is also exploring other indications, such as liver fibrosis and MASH for semaglutide.
Thermo Fisher Scientific Inc. (TMO)
Thermo Fisher shares have underperformed the Zacks Medical – Instruments industry over the past year, with a decline of -20.6% compared to -11% for the industry. Volatile macroeconomic uncertainties, currency issues, and fierce competitive pressure add to the concerns.
However, Thermo Fisher is navigating tough economic conditions by leveraging GenAI as part of the PPI Business System, resulting in strong financial performance. The company’s growth strategy has been bolstered by recent product launches, including Olink Reveal and Thermo Scientific Vulcan Automated Lab.
Thermo Fisher’s efforts to prioritize customer partnerships to drive innovation and improve patient care are positive. The Zacks analyst expects the company’s revenues to grow at a 7.3% CAGR during fiscal 2025-2027. Robust solvency further supports optimism about the stock.
FONAR Corp. (FONR)
FONAR shares have gained +4.2% over the past year against the Zacks Medical – Products industry’s gain of +6.5%. This microcap company with a market capitalization of $96.71 million delivers stable, recurring revenue through long-term MRI center management contracts. Strong scan volume growth and rising utilization support site-level productivity.
The dual-modality MRI strategy enhances throughput and clinical utility. A strong balance sheet with $54.4 million in cash and minimal debt provides growth flexibility.
However, rising SG&A costs and credit reserves are compressing margins, while MRI equipment sales remain weak. Revenue growth remains flat despite record scans, reflecting limited pricing power. Heavy dependence on no-fault/PIP claims and tech disruption risk from AI-driven imaging present headwinds. The stock offers deep value but requires margin recovery and tech reinvestment for re-rating.
Other Noteworthy Reports
Other notable reports include Phillips 66 (PSX), HubSpot, Inc. (HUBS), and The Carlyle Group Inc. (CG).
Must Read
SAP Revenue Growth Fueled by Strong Cloud Momentum
SAP’s revenue growth is driven by strong cloud momentum, with the company showing consistent progress in its cloud initiatives.
GLP-1 Drugs Boost Novo Nordisk (NVO), Market Rivalry a Woe
GLP-1 drugs are boosting Novo Nordisk’s performance, although market rivalry presents challenges.
End Market Strength, Innovations Aid Thermo Fisher (TMO)
End market strength and innovations are aiding Thermo Fisher’s performance.
Featured Reports
Phillips 66’s (PSX) Diversified Business Model Fuels Growth
Phillips 66’s diversified business model is fueling growth, though rising regulatory-compliance costs may limit profitability.
Carlyle (CG) Rides on Rising AUM Balance Amid High Expenses
Carlyle’s global presence and expansion efforts are likely to continue aiding asset under management (AUM) growth, despite rising expenses.
Favorable Demand to Aid Reliance (RS) Amid Pricing Pressure
Reliance is set to benefit from strong end-market demand and acquisitions, though pricing challenges and semiconductor weakness may weigh on performance.
AUM, Technological Innovation to Aid SEI Investments (SEIC)
Solid AUM, diverse products, strategic acquisitions, and robust technology are likely to aid SEI Investments’ financials.
NGDV Production Ramp Aids Oshkosh (OSK) Amid Falling Backlog
Oshkosh’s plan to ramp up NGDV production throughout the year is expected to drive strong revenue growth into 2026, despite declining consolidated backlog.
Under Armour (UAA) Gains on Strategic Brand Transformation
Under Armour is progressing in its multi-year transformation to strengthen its brand through deeper customer engagement, effective innovations, and disciplined market strategy.
Growing Revenues, Acquisitions Aid Acadia Healthcare (ACHC)
Acadia Healthcare’s rising topline, driven by rising patient volumes and operational efficiencies, will pave the way for growth, supported by acquisitions.
New Upgrades
HubSpot (HUBS) Rides on Strong User Engagement, AI Focus
HubSpot is benefiting from strong user engagement and an AI-focused approach, which is likely to boost its margins.
Dropbox (DBX) Rides on Large User Base & Strong Portfolio
Dropbox is benefiting from a large user base and better market share thanks to an expanding portfolio.
Investments & Customer Additions Aid UGI Corporation (UGI)
UGI’s strategic investment plans help to upgrade and replace aging infrastructure, improving its performance. The company also gains from an expanding customer base.
New Downgrades
Competition and Nil Dividend Payout Hurts Palantir (PLTR)
High competition demands tech and talent investment, raising Palantir’s difficulty in balancing growth and profitability. A nil dividend payout deters income-seeking investors.
Lower IT Spending to Hurt DXC Technology’s (DXC) Prospects
DXC Technology’s growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid macroeconomic headwinds.
Still-High Mortgage Rates & Macro Risks Hurt Lennar (LEN)
Lennar’s prospects are hurting from the ongoing softness in the housing market alongside tariff-related uncertainties and lingering inflationary pressures.