Friday, February 28, 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 Goldman Sachs Group, Inc. (GS), The Progressive Corp. (PGR) and Boston Scientific Corp. (BSX), as well as micro-cap stock Cooper-Standard Holdings Inc. (CPS). 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 >>> PCE Brings Good News to the Stock Market

Today's Featured Research Reports

Goldman Sachs’ shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+72.7% vs. +42.6%). The company’s refocus on the core strengths of IB and trading businesses through restructuring initiatives will boost its presence in overseas markets. The company's decent cash levels and solid credit profile will aid capital distribution moves. Its earnings surpassed estimates in each of the trailing four quarters. 

However, the company's global banking and markets division will likely be under pressure due to the volatile nature of capital markets. Given the current geopolitical concerns, high dependence on overseas revenues is worrisome. Further, rising expenses might limit its bottom-line growth. 

Nonetheless, the company's strategic acquisitions and expansion in the private equity credit line will help diversify the fee-revenue base and offer top-line stability for the company.

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

Shares of Progressive have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+41.3% vs. +18%). The company continues to gain on higher premiums, given its compelling product portfolio, leadership position and strength in both Vehicle and Property businesses. 

Progressive’s focus on becoming a one-stop insurance destination, catering to customers opting for a combination of home and auto insurance, augurs well for the company's growth. Policies in force and retention ratio should remain healthy. Competitive pricing to retain current customers and address customer needs with new offerings should continue to drive policy life expectancy. 

However, exposure to catastrophe losses induces underwriting volatility. Escalating expenses due to higher losses and settlement expenses remain an overhang on the margin. Its high debt level induces higher interest expense concerns.

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

Boston Scientific’s shares have outperformed the Zacks Medical - Products industry over the past year (+60.2% vs. +13.9%). The company, despite macroeconomic concerns and related cost inflation, is seeing strength across target markets. 

Strong worldwide demand for its MedSurg and Cardiovascular lines, traction in the United States and outside for its the next generation WATCHMAN FLX and FLX Pro, as well as contribution from accretive acquisitions are important drivers. The Pain and Brain franchisees are expected to gain solid traction in 2025 banking on strong execution of core growth strategies. 

The Electrophysiology arm continues to gain momentum on sustained adoption of FARAPULSE PFA. The 2025 guidance indicating strong organic growth over 2024 builds confidence in the stock. On the flip side, mounting costs due to worldwide geopolitical issues are major concerns. FX headwinds are expected to impact the company’s top line in 2025.

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

Shares of Cooper-Standard have declined -3.9% over the past year against the Zacks Automotive - Original Equipment industry’s decline of -9.2%. This microcap company with market capitalization of $258.51 million expanded margins despite lower revenue, with fourth-quarter adjusted EBITDA increasing 96.8% year-over-year to $54.3 million. Cost optimizations delivered over $100 million in savings, and management aims for double-digit margins by the fourth quarter of 2025. 

Net new business reached $181.4 million, with 58% tied to electric vehicles, boosting content per vehicle. Proprietary innovations and partnerships with major original equipment manufacturers enhance competitiveness. 

However, high debt of $1.06 billion and rising interest costs of $97.3 million in 2024, projected at $105 million to $115 million in 2025, pose risks. Cooper-Standard reported a net loss of $78.7 million in 2024 as revenue declined 3% to $2.73 billion. Weak global auto production, foreign exchange headwinds, and pricing pressure from automakers could challenge its 2025 margin target.

(You can read the full research report on Cooper-Standard here >>>)

Other noteworthy reports we are featuring today include HEICO Corp. (HEI), Nutanix, Inc. (NTNX) and Ball Corp. (BALL).

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>>>