Tuesday, April 8, 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 Walmart Inc. (WMT), The Coca-Cola Co. (KO) and HSBC Holdings plc (HSBC), as well a micro-cap stock Friedman Industries Inc. Common Stock (FRD). 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

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You can read today's AWS here >>> Pre-Markets Rocket Up on Overseas Optimism

Today's Featured Research Reports

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+41.8% vs. +40.1%). The company benefits from its diverse business model that spans multiple segments, channels and formats. The company's strong omnichannel strategy has boosted traffic across physical stores and digital platforms. 

Walmart's emphasis on improving delivery services has been successful, contributing to steady grocery market share gains. Upsides like these, along with growth in the advertising business, fueled fourth-quarter fiscal 2025 results, wherein the top and bottom lines increased year over year, and e-commerce sales surged. 

However, Walmart’s profitability is being impacted by rising selling, general and administrative (SG&A) expenses, thanks to tech investments, higher wages and marketing. Also, volatile currency fluctuations are expected to further pressure sales in the upcoming fiscal year.

(You can read the full research report on Walmart here >>>)

Shares of Coca-Cola have outperformed the Zacks Beverages - Soft drinks industry over the past year (+17.9% vs. +1.3%). The company has experienced positive business trends, as evident by its strong track record of beating expectations. In fourth-quarter 2024, the company exceeded sales and earnings estimates for the eighth consecutive quarter, with earnings showing year-over-year improvement. 

Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. Coca-Cola's all-weather strategy -- combining marketing, innovation, and revenue growth management -- supports its vision of a total beverage company and is expected to drive revenue growth in 2025. 

Coca-Cola has provided an optimistic view for 2025. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.

(You can read the full research report on Coca-Cola here >>>)

HSBC’s shares have outperformed the Zacks Banks - Foreign industry over the past year (+28.5% vs. +8.3%). The company’s strong capital position, relatively high interest rates, global network and business simplification initiatives will keep supporting the company’s financials. As part of its Asia pivot strategy, it is moving away from less profitable markets and has announced the sale of businesses in Germany and South Africa.

HSBC has exited retail operations in the U.S., Canada, France, New Zealand, Greece, Russia, Argentina and Armenia. While efforts to strengthen its market share in Asia will support financials, they will likely lead to an increase in expenses. 

For 2025, the company expects operating expenses to increase 3%. Additionally, the company’s subdued revenue performance -- in light of weaker loan demand amid a challenging macroeconomic backdrop -- is a concern.

(You can read the full research report on HSBC here >>>)

Shares of Friedman Industries have underperformed the Zacks Metal Products - Procurement and Fabrication industry over the past year (-24.6% vs. -1.4%). This microcap company with a market capitalization of $97.38 million has seen fiscal third-quarter sales decline 18.9% year over year. The tubular segment remains weak and high inventory levels pose risks amid steel price volatility. 

Rising costs and debt burdens could pressure profitability despite hedging strategies and operational efficiencies. Nevertheless, Friedman Industries' sales backlog grew 11% year over year in third-quarter fiscal 2025, signaling stronger demand and potential revenue recovery. 

Post-election stability has driven increased order activity, with fiscal fourth-quarter sales and margin expansion expected as hot-rolled coil (HRC) prices rebound. Debt fell 9% to $32.5 million, with $99.2 million in available credit supporting operations. Industry tailwinds include a projected increase in HRC prices and rising infrastructure and manufacturing investments. 

(You can read the full research report on Friedman Industries here >>>)

Other noteworthy reports we are featuring today include TotalEnergies SE (TTE), Marsh & McLennan Companies, Inc. (MMC) and Petróleo Brasileiro S.A. - Petrobras (PBR).

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>>>