Monday, August 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 IBM Corp. (IBM), The Goldman Sachs Group, Inc. (GS) and Thermo Fisher Scientific Inc. (TMO). 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
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You can read today’s AWS here >>> Retailers Start to Report Earnings This Week
Today’s Featured Research Reports
IBM’s shares have outperformed the Zacks Computer – Integrated Systems industry over the past year (+26.8% vs. +18.8%). The company reported strong second-quarter 2025 results, with adjusted earnings and revenues beating the consensus estimate. It witnessed healthy demand trends for hybrid cloud and AI solutions, with a client-focused portfolio and broad-based growth.
The acquisition of Hakkoda has strengthened its data expertise and augmented its capability to support clients’ AI transformation initiatives. 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, declining net sales in the Consulting segment, owing to soft demand in some end markets, are straining margins. Macroeconomic headwinds are worrisome. IBM’s acquisition spree has also escalated integration risks.
(You can read the full research report on IBM here >>>)
Shares of Goldman Sachs have outperformed the Zacks Financial – Investment Bank industry over the past year (+47.3% vs. +42.8%). The company has beaten earnings estimates in the trailing four quarters. Its second-quarter 2025 results benefited from solid growth in the Global Banking & Markets division.
Goldman Sachs’ refocus on the core strengths of investment banking (IB) and trading businesses through restructuring, along with acquisitions and expansion in private equity credit, is expected to boost its global presence and diversify revenues. Post-clearing the 2025 Fed stress test, it raised dividends.
However, given the current geopolitical concerns, Goldman’s high dependence on overseas revenues is worrisome. Further, the company’s rising expenses due to ongoing investments in technology are concerning. Yet its decent cash levels and solid credit profile will support its capital distribution plan.
(You can read the full research report on Goldman Sachs here >>>)
Thermo Fisher’s shares have declined -5.8% over the year-to-date period against the Zacks Medical Instruments industry’s decline of -7.3%. The company is braving the ongoing tough economic conditions by leveraging GenAI as part of the PPI Business System, resulting in strong financial performance.
Thermo Fisher’s growth strategy has been bolstered by several recent product launches, including Krios 5 Cryo-TEM and Orbitrap MS systems, among others, in the second quarter. Strategic acquisitions like Solventum and Olink bode well. Thermo Fisher’s Bioproduction arm remains a key driver with new facilities and product lines.
The Zacks analyst expect the company’s revenues to witness a 7.3% CAGR during fiscal 2025-2027. Robust solvency further instills optimism about the stock. However, a volatile macroeconomic environment can dent its operations. Currency woes and fierce competitive pressure add to the worry.
(You can read the full research report on Thermo Fisher here >>>)
Other noteworthy reports we are featuring today include Enbridge Inc. (ENB), Reddit, Inc. (RDDT) and TELUS Corp. (TU).
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
IBM Rides on Portfolio Strength, Solid Cloud and AI Demand
Focus on Core Business, Decent Liquidity Aid Goldman (GS)
New Innovations, End Market Strength Aid Thermo Fisher (TMO)
Featured Reports
Reddit (RDDT) Rides on Growing User Engagement, AI Features
Per the Zacks analyst, Reddit is benefiting from strong growth in user engagement driven by AI-powered features, including Reddit Answers.
TELUS (TU) Gains from Strong Health Services Growth
Per the Zacks analyst, TELUS is benefitting from solid momentum in the Health Service segments, along with increasing mobility and fixed customer additions.
MAP 2025 Initiatives Aid RPM’s Performance, Macro Woes Ail
Per the Zacks analyst, RPM benefits from MAP 2025 initiatives and acquisitions. Also, focus on the repair and maintenance bodes well. However, currency woes and tariff pressures are concerning.
HEPACO Buyout Benefits Clean Harbors (CLH), Competition High
Per the Zacks analyst, HEPACO acquisition expanded Clean Harbors’ Environmental Services segment’s field services business. High competition lowers pricing power and increases operational expenses.
High Premiums, Solid Capital Stand Aid RenaissanceRe (RNR)
Per the Zacks analyst, its rising premiums are driven by continued rate increases and strong segmental contributions. Moreover, a robust capital position continues to be a key catalyst.
Sirius XM (SIRI) Benefits from Steady ARPU, Lower User Loss
Per the Zacks analyst, Sirius XM’s prospects are expected to benefit from steady ARPU and lower subscriber loss as well as improving free cash flow.
Amicus (FOLD) Banks on Galafold, Overdependence a Concern
Per the Zacks analyst, Amicus’ lead drug, Galafold, has shown solid uptake since launch. The drug has shown blockbuster potential. However, overdependence on Galafold for revenues remains a concern.
New Upgrades
Enbridge (ENB) To Gain From Its Vast Transportation Network
Per the Zacks analyst, Enbridge’s extensive crude oil and gas transportation networks in North America support its low-risk business model and generate stable, fee-based revenues.
Strength in Aerospace & Defense Unit Aids RBC Bearings (RBC)
Per the Zacks analyst, RBC Bearings is witnessing solid momentum in the Aerospace & Defense unit, driven by strength in the commercial aerospace, defense aerospace, marine and helicopter markets.
High Rates, Loan Growth Likely to Aid Zions’ (ZION) Top Line
Per the Zacks analyst, robust loans, a solid balance sheet and relatively higher rates will support Zions top-line growth. Its capital distribution plans seem sustainable, given the earnings strength.
New Downgrades
Labor Shortage, Rising U.S. Tariffs May Hurt Embraer (ERJ)
Per the Zacks analyst, a shortage of skilled labor may cause Embraer to miss its delivery schedule for certain products. Also, rising U.S. tariffs on imported goods pose a threat to the stock.
NOV Inc. (NOV) Struggles with Aggressive Competitor Pricing
The Zacks analyst believes that NOV faces escalating pricing pressures and tariff challenges, threatening margins as competitors aggressively discount to regain market share amid a slowdown.
Hain Celestial (HAIN) Organic Sales Fall on Volume, Price
Per the Zacks analyst, Hain Celestial’s organic sales fell 5% YoY in Q3, with a 3-point drop from volume/mix and a 2-point decline from price pressures.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research