Monday, October 20, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including AstraZeneca PLC (AZN), RTX Corp. (RTX) and Applied Materials, Inc. (AMAT), as well as two micro-cap stocks Park Aerospace Corp. (PKE) and NetSol Technologies, Inc. (NTWK). 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 Let It Ride from Friday's Gains

Today's Featured Research Reports

AstraZeneca’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+32% vs. +11.6%). The company’s key drugs like Lynparza, Tagrisso, Imfinzi, Farxiga and Fasenra should keep driving revenues. AstraZeneca’s pipeline is strong, with pivotal late and mid-stage pipeline data readouts lined up. 

AstraZeneca has also been engaged in external acquisitions and strategic collaborations to boost its pipeline. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. 

However, potentially lower sales of Farxiga in China, the impact of Part D redesign on U.S. oncology sales and biosimilar/generic erosion of some key drugs are hurting the top line in 2025. Estimates are stable ahead of Q3 earnings release. The company has a mixed record of earnings surprises in the recent quarters.

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

Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+30.4% vs. +15.8%). The company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. This resulted in RTX registering a robust defense backlog of $92 billion as of June 30, 2025. Steadily improving global commercial air traffic boosts the company's sales. 

RTX’s management expects commercial aerospace recovery to remain robust, which, in turn, should boost the company’s operating results in the near term. The company also holds a solid solvency position, at least in the short term. 

Yet the uncertainties created by the recent imposition of U.S. government-issued import tariffs pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX.

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

Applied Materials’ shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+41.9% vs. +40.8%). The company is benefiting from strength in the Semiconductor Systems, owing to a rebound in the semiconductor industry, particularly in the foundry and logic space. Consistent progress in the services is aiding Applied Global Services’ performance. 

Solid momentum in the subscription and display businesses is a plus. Its strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry. Its diversified portfolio remains its key growth driver. The Zacks analyst model estimate indicates that sales are expected to witness a CAGR of 3.9% through fiscal 2025-2027. 

However, increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment may undermine its near-term growth prospects. Slow memory market recovery and rising operating costs remain major concerns.

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

Shares of Park Aerospace have outperformed the Zacks Aerospace - Defense Equipment industry over the year-to-date period (+38.7% vs. +30.4%). This microcap company with a market capitalization of $396.72 million boasts a 40-year streak of uninterrupted quarterly dividends, distributing $606M since FY05—reflecting robust free cash flow and disciplined capital allocation. Positioned in the growing aerospace composites market, it benefits from demand for lightweight, fuel-efficient aircraft. 

Park Aerospace targets high-complexity, low-volume applications in military and prototype programs, which offer margin upside and reduce competition. Proprietary products like SigmaStrut and AlphaStrut strengthen its technical edge and deepen OEM integration. U.S.-based manufacturing enhances quality control and mitigates geopolitical risks. 

However, rising SG&A expenses, negative operating cash flow, and increased inventory pose near-term headwinds. Customer concentration and potential delays in aerospace programs add earnings volatility. Still, Park Aerospace trades at a discount to industry average on EV/Sales. 

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

NetSol Technologies’ shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+74% vs. +20.1%). This microcap company with a market capitalization of $53.27 million operates in the fast-digitizing global asset finance and leasing market, offering its AI-powered Transcend platform to OEMs, auto captives and financial institutions. 

Strong regional traction in North America, Europe and APAC, coupled with modularity and regulatory adaptability, supports expansion into new markets. A completed shift to a SaaS-driven model, now accounting for nearly 50% of revenues, has enhanced predictability and margins, while disciplined cost control lifted fiscal 2025 EBITDA 76% year over year. 

However, structural declines in license fees and unearned revenues, margin pressures from rising expenses and customer concentration (BMW + Daimler = 35% of revenues) pose risks. Sustaining growth will hinge on deeper SaaS penetration, APAC recovery and improved operating leverage amid competitive SaaS dynamics.

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

Other noteworthy reports we are featuring today include Republic Services, Inc. (RSG), EMCOR Group, Inc. (EME) and Labcorp Holdings Inc. (LH).

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>>>