Thursday, March 20, 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 Apple Inc. (AAPL), Meta Platforms, Inc. (META) and Chevron Corp. (CVX), as well as two micro-cap stocks Taylor Devices, Inc. (TAYD) and GSI Technology, Inc. (GSIT).  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

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Pre-Markets Lower; Economic News Decent

Today's Featured Research Reports

Apple’s shares have outperformed the Zacks Computer - Micro Computers industry over the past year (+26.7% vs. +24.8%). The company is benefiting from strong growth in Services revenues. It now has more than 1 billion paid subscribers across its Services portfolio, more than double what it had four years ago.

The expanding content portfolio of Apple TV+ and Apple Arcade helped in driving subscriber growth. Apple expects the March quarter’s (second-quarter fiscal 2025) revenues to grow low to mid-single digits on a year-over-year basis. For the Services segment, It expects a low double-digit growth rate. 

Introduction of Apple Intelligence, an advanced personal intelligence system seamlessly integrated into iOS 18, iPadOS 18 and macOS Sequoia will help Apple shares to push higher. However, weakness in iPhone sales particularly in China is a concern. Increasing regulatory headwinds is a headwind. 

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

Shares of Meta Platforms have outperformed the Zacks Internet - Software industry over the past year (+20.1% vs. +3.8%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver. 

META has been leveraging AI to improve the potency of its platform offerings. These services currently reach more than 3.35 billion people daily. Meta’s growing footprint among young adults, driven by improving recommendations, boosts its competitive prowess. AI usage is making it a popular name among advertisers. This is expected to drive top-line growth. 

Meta now expects to invest significantly more over the next few years in developing more advanced models and the largest AI services in the world. However, monetization of these AI services will take considerable time, which is a concern.

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

Chevron’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past six months (+13.5% vs. +6.9%). The company being a fully integrated energy firm is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. 

Further, the planned acquisition of Hess Corporation is expected to significantly strengthen Chevron's presence in oil-rich Guyana. However, the company is grappling with high sensitivity to oil fluctuations and relatively expensive valuation. 

Another concern is the weak margins on refined products that forced its downstream segment to its first quarterly loss in 4 years. Considering these factors, investors are advised to wait for a better entry point.

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

Shares of Taylor Devices have underperformed the Zacks Manufacturing - General Industrial industry over the past year (-24.8% vs. -6.0%). This microcap company with market capitalization of $99.73 million has seen U.S. sales, which account for 82% of revenues, declined 7%, reflecting softness in domestic demand. Total revenues for the first half of fiscal 2025 was $20.17M, a slight decline from the prior year, while net income and operating income each fell 3%. SG&A expenses increased 7% year over year.

Nevertheless, Taylor Devices is positioned for growth, supported by increasing global demand for seismic protection, industrial dampers and defense applications. The company’s backlog expanded to $34.5 million, providing strong revenue visibility into fiscal 2025-26. International sales rose 37%, particularly in Asia.

Industrial segment sales climbed 43%, reflecting the broader adoption of vibration control systems in automation and heavy industry. Gross margin improved to 47% from 45%, highlighting pricing power and operational efficiency. A strong balance sheet ensures financial flexibility for expansion.

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

GSI Technology’s have underperformed the Zacks Computer- Storage Devices industry over the past year (-34.5% vs. -32.1%). This microcap company with market capitalization of $68.36 million is facing challenges which includes an $8.4 million net loss in the first nine months of FY2025, an 11.9% YoY revenue decline, and margin compression to 46.7%. SRAM sales weakness, customer concentration risks and cash burn raise sustainability concerns.

Nevertheless, GSI Technology is expanding its defense AI presence with key U.S. government contracts, including a $0.3 million Army SBIR contract and ongoing Phase 2 projects with the Air Force and Space Development Agency, validating its AI accelerators for military applications. 

The company operates in the growing HPC and AI markets, with its Gemini-II and Plato chips designed for low-power, high-speed AI workloads. Rising SRAM demand from AI hardware supports revenues, with a major AI customer expected to lead sales in FY2025. Strategic asset sales have strengthened liquidity, providing $15.1 million in cash with no debt.

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

Other noteworthy reports we are featuring today include Pfizer Inc. (PFE), Corning Inc. (GLW) and Johnson Controls International plc (JCI).

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>>>