Tuesday, April 1, 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 Amazon.com, Inc. (AMZN), Oracle Corp. (ORCL) and Merck & Co., Inc. (MRK). 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 >>> Countdown to "Liberation Day;" Pre-Markets in the Red

Today's Featured Research Reports

Shares of Amazon.com have gained +4.1% over the past year against the Zacks Internet - Commerce industry’s gain of +15.4%. The company’s top-line is driven by steady momentum in Prime and AWS. Strengthening AWS services portfolio and its growing adoption rate is contributing well to AWS performance. Ultrafast delivery services and expanding content portfolio are beneficial. 

Strengthening relationships with third-party sellers is a positive. Robust advertising businesses are also contributing well. Amazon’s expanding global presence remains a positive. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are other positives. Deepening focus into generative AI is a major plus. We expect 2025 net sales to increase 8.6% from 2025. 

However, Amazon announced disappointing guidance for the first quarter. Management cited foreign exchange headwinds and the absence of an extra Leap Year Day as factors likely to impact growth in the current quarter.

(You can read the full research report on Amazon.com here >>>)

Oracle’s shares have outperformed the Zacks Computer - Software industry over the past year (+13.8% vs. -6.2%). The company reported mixed fiscal Q3 2025 results, wherein earnings and revenues missed estimates. Revenues were driven by continued momentum from its Oracle Cloud Infrastructure business, including from winning cloud-computing contracts from AI-focused startups. 

ORCL’s continued investment in cloud infrastructure positions it well for sustained growth in the dynamic software industry. ORCL’s partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google bodes well. Oracle’s Gen 2 Cloud is driving artificial intelligence clientele.  Its share buybacks and dividend policy are noteworthy. 

The Zacks analyst expect fiscal 2025 net sales to grow 7.7% from fiscal 2024. However, higher spending on product enhancements, toward the cloud platform amid increasing competition in the cloud domain is likely to limit margin expansion.

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

Shares of Merck have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-29.7% vs. -4.7%). The company is facing rising competitive pressure on the diabetes franchise and persistent challenges for Gardasil in China remain overhangs. There are concerns about Merck’s ability to successfully navigate the Keytruda loss of exclusivity period and potential competition for Keytruda. 

However, Keytruda’s sales are expected to remain strong until it loses patent protection. Estimates are stable ahead of Q1 results. Merck has a positive record of earnings surprises in recent quarters.

Nevertheless, Blockbuster drug, Keytruda, and new products have been driving Merck’s sales. With continued label expansion into new indications, particularly earlier-stage launches, Keytruda is expected to see continued growth. Animal health is also contributing to growth. Merck boasts a strong cancer pipeline. 

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

Other noteworthy reports we are featuring today include AT&T Inc. (T), Danaher Corp. (DHR) and Duke Energy Corp. (DUK).

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>>>