Monday, March 3, 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 Costco Wholesale Corp. (COST), AT&T Inc. (T) and Marsh & McLennan Companies, Inc. (MMC), as well a micro-cap stock Air T, Inc. (AIRT). 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 >>>

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You can read today's AWS here >>> Pre-Markets Pick Up Where Friday Left Off

Today's Featured Research Reports

Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+41.9% vs. +19.4%). The company being a consumer defensive stock, Costco 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.

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

Shares of AT&T have outperformed the Zacks Wireless National industry over the past year (+62.9% vs. +48.9%). The company remains focused on business transformation efforts to augment operational efficiency and facilitate the optimum utilization of resources to enhance value. Solid 5G traction and fiber subscriber growth are key growth drivers.

AT&T has collaborated with Microsoft to move its 5G mobile network to the latter’s cloud. This will enable the company to enhance productivity and deliver large-scale network services to meet customers’ needs. Collaboration with Nokia to streamline network services, improve automation and accelerate deployment timelines is a positive factor.

However, intensifying competition in a highly saturated wireless market will likely impact profits. The steady decline in linear TV subscribers and legacy services is a potent headwind. Healthy discounts and freebies to woo customers dent margins.

(You can read the full research report on AT&T here >>>)

Marsh & McLennan’s shares have gained +15% over the past year against the Zacks Insurance - Brokerage industry’s gain of +34.6%. The company’s fourth-quarter earnings beat estimates. Marsh & McLennan is well-positioned for growth due to strategic acquisitions, new product launches and diversification into emerging markets. Its $7.75 billion McGriff acquisition is expected to significantly expand its middle-market reach.

MMC’s revenues have surged owing to its broad geographic presence, robust client retention and the solid performance of the Risk and Insurance Services unit. Strong cash flow supports its ongoing investments and impressive dividend increases. The company also returns capital to shareholders through share repurchases.

However, rising operating costs due to higher compensation and benefits are likely to impact margins. Its debt-laden balance sheet and lower investment income are concerns. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Shares of Air T have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+8.5% vs. -9.1%). This microcap company with market capitalization of $47.19 million reported a 22.2% revenue increase to $77.9 million in third-quarter fiscal 2025 from $63.8 million in the prior-year quarter, with growth across all core segments.

Overnight Air Cargo revenue rose 5.4% to $30.6 million, Ground Equipment Sales surged 40.3% to $11.8 million and Commercial Jet Engines & Parts grew 35.4% to $32.7 million. Operating income improved to $1.8 million from a $1.6 million loss, while adjusted EBITDA reached $2.7 million against a loss of $0.1 million in the year-ago period. Contrail Aviation remains a key growth driver, benefiting from aftermarket demand.

However, risks include $105.4 million in debt, rising interest costs, reliance on FedEx, liquidity pressures and cyclical aviation headwinds. A third-quarter fiscal 2025 net loss of $1.3 million raises concerns about earnings sustainability.

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

Other noteworthy reports we are featuring today include Marvell Technology, Inc. (MRVL), General Motors Co. (GM) and LPL Financial Holdings Inc. (LPLA).

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>>>