Thursday, October 9, 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 Netflix, Inc. (NFLX), Salesforce, Inc. (CRM) and Shell plc (SHEL), as well as two micro-cap stocks Investors Title Co. (ITIC) and Smith-Midland Corp. (SMID). 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 opening, 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 >>> Pre-markets Flat as Q3 Earnings Season Kicks Off

Today's Featured Research Reports

Netflix shares have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+36.6% vs. +31.6%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention. 

NFLX's advertising tier now accounts for more than 55% of new sign-ups in available markets. NFLX has set an ambitious target to double its revenues by 2030 and reach a $1 trillion market capitalization, supported by a diversified content strategy, including international programming, live events, and gaming initiatives. 

The 2025 content slate with returning hit shows like Squid Game, Wednesday and Stranger Things hold promise. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind.

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

Shares of Salesforce have underperformed the Zacks Computer - Software industry over the year-to-date period (-28.2% vs. +22.1%). The company is facing stiff competition and unfavorable currency fluctuations are concerns. Softening IT spending amid ongoing macroeconomic uncertainties may hurt its growth prospects.

Nevertheless, Salesforce is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on aligning products with customer needs is driving the top line.

Continued deal wins in the international market are another growth driver. The buyout of Slack has positioned it as a leader in enterprise team collaboration and improved its competitive standing compared to Microsoft Teams. 

Salesforce’s strategy of continuous expansion of generative AI offerings will help it tap the growing opportunities in the space. Our estimates suggest that Salesforce’s revenues are expected to witness a CAGR of 8.6% through fiscal 2025-2028.

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

Shell’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+22.2% vs. +9.4%). The company being a London based oil supermajor, looks fairly balanced at the moment. The start-up of LNG Canada and leadership in projects like Whale and Mero-4 strengthen its LNG and upstream portfolio, offering resilience against oil price volatility. 

Cost savings of nearly $4 billion since 2022 and a disciplined capital strategy underpin its free cash flow growth target, while consistent $3-3.5 billion quarterly buybacks and a 4% dividend yield enhance shareholder returns. 

However, the year over year fall in revenues and earnings in the second quarter of 2025 underscores exposure to commodity cycles. Weak chemicals margins, falling upstream production, and risks of LNG oversupply further weigh on outlook. Additionally, Shell’s slower transition toward renewables raises ESG concerns. Hence investors are advised to hold the stock.

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

Shares of Investors Title have outperformed the Zacks Insurance - Property and Casualty industry over the past year (+24.6% vs. +9.2%). This microcap company with a market capitalization of $492.79 million delivered robust H1 2025 results, with net premiums up 10.1% to $100.8 million and EPS rising 14.9% to $8.16, showcasing strong underwriting and operational efficiency. Non-title revenues climbed 17.2%, driven by like-kind exchange services, now contributing 25% of pre-tax income, enhancing earnings durability. 

A steady 46 cents per share quarterly dividend and ongoing buyback capacity highlight consistent shareholder returns. Geographic exposure to growth markets like TX (+15.2%) and FL (+20.7%) supports organic expansion. The firm’s debt-free balance sheet with $90M in liquidity and $266 million equity provides strategic flexibility. 

However, rising claims reserves (+129.8%), higher agent commissions, and sensitivity to 1031 exchange reforms and interest rate volatility pose risks. Despite these, shares are up 10% YTD and trade at a discount (1.49x EV/sales vs. 2.36x sub-industry).

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

Smith-Midland’s shares have gained +2.2% over the past year against the Zacks Building Products - Concrete and Aggregates industry’s gain of +20.8%. This microcap company with a market capitalization of $190.49 million and an expanding barrier rental fleet is transforming its revenue model toward high-margin, recurring income, with rental revenue jumping to $14.2 million in the first half of 2025 and driving a 360bps margin gain. 

Growth in proprietary Soundwall and SlenderWall systems, alongside rising Easi-Set modular building sales, enhances diversification and captures infrastructure-driven demand. Royalties climbed 53%, reinforcing asset-light, high-margin income. Operating leverage and cost discipline doubled net income to $7.5 million. A $54-million backlog supports visibility amid infrastructure tailwinds. 

However, risks include customer concentration, dependence on one-off projects, unresolved internal control weaknesses, elevated working capital, and exposure to input cost inflation. As such, the stock warrants a cautious stance.

(You can read the full research report on Smith-Midland here >>>)

Other noteworthy reports we are featuring today include Waste Management, Inc. (WM), Cummins Inc. (CMI) and Veeva Systems Inc. (VEEV).

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>>>