Wednesday, April 30, 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), Johnson & Johnson (JNJ) and Cisco Systems, Inc. (CSCO), as well as a micro-cap NeurAxis, Inc. (NRXS). 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, attempting 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 >>> First Negative GDP in 3+ Years: -0.3%; Pre-Markets Down

Today's Featured Research Reports

Shares of Amazon.com have gained +0.4% over the past year against the Zacks Internet - Commerce industry’s gain of +13.4%. 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. Ultra-fast delivery services and expanding content portfolio are beneficial. Strengthening relationships with third-party sellers is a positive.

A robust advertising business is 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 on 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 >>>)

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+8.3% vs. +3.5%). The company beat Q1 estimates for earnings and sales. J&J’s Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli.

J&J is making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened this pipeline. However, sales in the MedTech segment have slowed down due to headwinds in Asia-Pacific markets like China and competitive pressure in some categories.

The launch of Stelara generics is eroding the drug’s sales in 2025. Uncertainty around the talc lawsuits remains. The potential impact of pharma tariffs in an uncertain economic landscape is still an overhang.

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

Shares of Cisco Systems have gained +24.3% over the past year against the Zacks Computer - Networking industry’s gain of +25%. The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. An increase in its recurring revenue base bodes well for investors. The Splunk acquisition enhances these recurring revenues.

The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and making it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio.

However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition.

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

NeurAxis’ shares have outperformed the Zacks Medical Info Systems industry over the year-to-date period (+5.5% vs. +4.9%). This microcap company with a market capitalization of $16.02 million has delivered 43% revenue growth in fourth-quarter 2024, driven by 45% unit growth and insurance expansion from 4 million to 51 million lives.

Regulatory milestones, including FDA clearance for broader age use and upcoming CPT I code activation (January 2026), enhance scalability. IB-Stim targets a pediatric gut-brain disorder market valued at more than $8 billion, and the RED device expands into a $2 billion adult diagnostic market.

While revenue growth, liquidity ($3.7 million cash) and gross margins (86.4% in the fourth quarter) are solid, risks include delayed CPT benefits, insurance adoption lag, concentration in IB-Stim, cash burn, margin pressure from discount programs and emerging MedTech competition. The stock is currently valued below its historical median on both EV/Sales and P/S metrics, aligning closely with industry averages.

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

Other noteworthy reports we are featuring today include Cadence Design Systems, Inc. (CDNS), Aon plc (AON) and Equifax Inc. (EFX).

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>>>

Story Continues

Today's Must Read

Amazon (AMZN) Rides on Prime & AWS Amid Rising Competition

J&J's (JNJ) Innovative Medicine Strong, MedTech Slows Down

Cisco (CSCO) Benefits From Strong Security Products Adoption

Featured Reports

Cadence (CDNS) Benefits from Diversified Product Portfolio
Per the Zacks analyst, Cadence's performance is gaining from solid demand amid accelerated chip design activity. Stiff competition and uncertain macroeconomic conditions remain concerns.

Aon's (AON) Strategic Acquisitions Aid, Expenses Woes Linger
Per the Zacks analyst, several acquisitions and collaborations are helping AON enhance its capabilities and driving its profit growth. However, rising expenses remain a concern.

Equifax (EFX) Benefits From Acquisitions Amid Low Liquidity
Per the Zacks analyst, acquisitions have enabled Equifax to provide a broad insight into consumer performance and explore market opportunities over time. Low liquidity is concerning.

Cincinnati Financial (CINF) Benefits From Commercial Lines
Per the Zacks analyst, consistent progress at the Commercial Lines segment backed by solid premiums earned contributes to revenue growth of Cincinnati Financial. However, high costs weigh on margins.

Gentex (GNTX) to Ride on VOXX Buyout Amid Cost Headwinds
While Gentex's portfolio benefits from the addition of VOXX's automotive, consumer electronics and audio businesses, high R&D and engineering expenses may limit margins, per the Zacks analyst.

Demand Aids Cousins Properties (CUZ), Interest Expenses Hurt
Per the Zacks Analyst, Cousins Properties is to benefit from tenants' solid demand for premier office spaces amid slow new starts and improving return to office. Yet, high interest expenses hurt.

NOV Inc. (NOV) to Gain from Strong Offshore Demand
The Zacks analyst sees NOV's deepwater equipment demand as a long-term growth driver but remains concerned about tariff impacts and trade tensions weighing on near-term profitability.

New Upgrades

Investments, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst, National Fuel Gas' systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will boost its performance.

Integer Holdings (ITGR) Rises on Innovation, Key M&A Deals
Per the Zacks analyst, Integer Holdings is benefiting from portfolio optimization and the divestiture of its Non-Medical unit. Strong R&D and strategic acquisitions fuel its MedTech growth ambitions

Strong Sales for Nerlynx Aid Puma Biotech's (PBYI) Revenues
Per the Zacks analyst, Puma Biotech's cancer drug, Nerlynx, is witnessing consistent sales growth in the United States. The acquisition of alisertib also holds promise as it possess huge potential

New Downgrades

Alaska Air (ALK) is Weighed Down by Macroeconomic Uncertainty
Per the Zacks Analyst, ALK is hurt by tariff-induced economic uncertainties and the resultant reduction in consumer and corporate confidence, which is leading to a slowdown in air travel demand.

Soft Margin at Segments Weigh on FEMSA's (FMX) Bottom Line
Per the Zacks analyst FEMSA grapples with soft operating margins across all segments, except Health division, on operating expense deleverage. This weighed on earning performance in first-quarter 2025

Tariff Costs & Soft Demand to Hurt Masco's (MAS) Performance
Per the Zacks analyst, Masco's prospects are hindered by higher costs from new tariffs and soft demand across segments, as consumers remain cautious in a weak economic environment.

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Amazon.com, Inc. (AMZN):Free Stock Analysis Report

Johnson & Johnson (JNJ):Free Stock Analysis Report

Cisco Systems, Inc. (CSCO):Free Stock Analysis Report

Equifax, Inc. (EFX):Free Stock Analysis Report

Aon plc (AON):Free Stock Analysis Report

Cadence Design Systems, Inc. (CDNS):Free Stock Analysis Report

Neuraxis, Inc. (NRXS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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