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The Zacks Analyst Blog Highlights UBS, Newmont, McKesson and The Cato
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For Immediate Release
Chicago, IL – October 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: UBS Group AG (UBS - Free Report) , Newmont Corp. (NEM - Free Report) , McKesson Corp. (MCK - Free Report) and The Cato Corp. (CATO - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for UBS, Newmont and McKesson
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 UBS Group AG, Newmont Corp. and McKesson Corp., as well as a micro-cap stock The Cato Corp. 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.
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.
Shares of UBS have gained +31.8% over the year-to-date period against the Zacks Banks - Foreign industry’s gain of +39.4%. The company’s earnings beat estimates in the trailing four quarters. UBS expanded its reach through partnerships, buyouts, and optimization plans supporting its financials. It has reduced risk-weighted assets in its Non-Core and Legacy portfolio, unlocking capital ahead of schedule.
However, rising lawsuits, including the $987 million French tax settlement in September 2025, may raise litigation provisions and weigh on earnings. Its unfavorable debt/ equity ratio indicates that capital distribution might not be sustainable.
Nevertheless, it remains on track to complete Credit Suisse’s integration by 2026 and achieve gross cost reductions of around $13 billion. Also, steady net interest income (NII) growth and a strong capital position will support top-line growth.
Newmont’s shares have outperformed the Zacks Mining - Gold industry over the year-to-date period (+152.5% vs. +126.5%). The company’s earnings estimates for the third quarter have been going up over the past month. The company is making notable progress with its growth projects. It is likely to gain from several projects, including the Tanami expansion.
The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company also remains focused on improving operational efficiency and returning value to shareholders.
However, it is grappling with higher production costs, reflected by higher costs applicable to sales (CAS) and all-in-sustaining costs (AISC). Elevated sustaining capital spending, along with a projected increase for 2025, have raised concerns about Newmont's cash flow. Higher general and administrative (G&A) expenses may also impact margins.
Shares of McKesson have outperformed the Zacks Medical - Dental Supplies industry over the year-to-date period (+39.2% vs. +2.7%). The company is delivering record revenues and expanding margins, supported by growth in specialty pharmaceuticals, oncology services, RxTS, and GLP-1 distribution.
Strategic acquisitions such as PRISM and Core Ventures enhance its oncology footprint, while RxTS provides recurring, high-margin revenue streams. Strong cash flow generation and disciplined capital allocation underpin long-term adjusted EPS growth of 12–14%.
However, risks remain significant. Revenue concentration with large customers, regulatory headwinds such as IRA and DSCSA, and execution challenges from the Medical-Surgical separation and ongoing M&A integration could pressure earnings stability. Rising labor and transportation costs, combined with variability in 3PL revenues, add further margin uncertainty.
Cato’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the year-to-date period (+7.7% vs. -11.2%). This microcap company with a market capitalization of $82.46 million posted a strong earnings rebound in Q2 FY25, with net income surging to $6.8 million from $1 million YoY, driven by margin expansion, SG&A discipline and same-store sales growth. Improved merchandising and sourcing led to a 160 bps drop in COGS.
Operating cash flow rose to $15.6 million due to inventory reductions, while capex declined, boosting free cash flow. With $90.8 million in cash and no debt, Cato maintains robust liquidity and financial flexibility. Same-store sales rose 9% in Q2 despite 65 fewer stores, reflecting higher productivity and merchandising gains.
However, risks persist: tariff costs are rising, e-commerce remains under 5% of sales, and accelerated store closures suggest structural headwinds. The company also suspended its dividend and shows limited credit segment growth. Trading at just 0.48X P/B vs. 6.52X for its sub-industry, valuation reflects these challenges.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights UBS, Newmont, McKesson and The Cato
For Immediate Release
Chicago, IL – October 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: UBS Group AG (UBS - Free Report) , Newmont Corp. (NEM - Free Report) , McKesson Corp. (MCK - Free Report) and The Cato Corp. (CATO - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Top Research Reports for UBS, Newmont and McKesson
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 UBS Group AG, Newmont Corp. and McKesson Corp., as well as a micro-cap stock The Cato Corp. 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 >>> Pre-markets Strengthen on Solid Q3 Bank Earnings
Today's Featured Research Reports
Shares of UBS have gained +31.8% over the year-to-date period against the Zacks Banks - Foreign industry’s gain of +39.4%. The company’s earnings beat estimates in the trailing four quarters. UBS expanded its reach through partnerships, buyouts, and optimization plans supporting its financials. It has reduced risk-weighted assets in its Non-Core and Legacy portfolio, unlocking capital ahead of schedule.
However, rising lawsuits, including the $987 million French tax settlement in September 2025, may raise litigation provisions and weigh on earnings. Its unfavorable debt/ equity ratio indicates that capital distribution might not be sustainable.
Nevertheless, it remains on track to complete Credit Suisse’s integration by 2026 and achieve gross cost reductions of around $13 billion. Also, steady net interest income (NII) growth and a strong capital position will support top-line growth.
(You can read the full research report on UBS here >>>)
Newmont’s shares have outperformed the Zacks Mining - Gold industry over the year-to-date period (+152.5% vs. +126.5%). The company’s earnings estimates for the third quarter have been going up over the past month. The company is making notable progress with its growth projects. It is likely to gain from several projects, including the Tanami expansion.
The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company also remains focused on improving operational efficiency and returning value to shareholders.
However, it is grappling with higher production costs, reflected by higher costs applicable to sales (CAS) and all-in-sustaining costs (AISC). Elevated sustaining capital spending, along with a projected increase for 2025, have raised concerns about Newmont's cash flow. Higher general and administrative (G&A) expenses may also impact margins.
(You can read the full research report on Newmont here >>>)
Shares of McKesson have outperformed the Zacks Medical - Dental Supplies industry over the year-to-date period (+39.2% vs. +2.7%). The company is delivering record revenues and expanding margins, supported by growth in specialty pharmaceuticals, oncology services, RxTS, and GLP-1 distribution.
Strategic acquisitions such as PRISM and Core Ventures enhance its oncology footprint, while RxTS provides recurring, high-margin revenue streams. Strong cash flow generation and disciplined capital allocation underpin long-term adjusted EPS growth of 12–14%.
However, risks remain significant. Revenue concentration with large customers, regulatory headwinds such as IRA and DSCSA, and execution challenges from the Medical-Surgical separation and ongoing M&A integration could pressure earnings stability. Rising labor and transportation costs, combined with variability in 3PL revenues, add further margin uncertainty.
(You can read the full research report on McKesson here >>>)
Cato’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the year-to-date period (+7.7% vs. -11.2%). This microcap company with a market capitalization of $82.46 million posted a strong earnings rebound in Q2 FY25, with net income surging to $6.8 million from $1 million YoY, driven by margin expansion, SG&A discipline and same-store sales growth. Improved merchandising and sourcing led to a 160 bps drop in COGS.
Operating cash flow rose to $15.6 million due to inventory reductions, while capex declined, boosting free cash flow. With $90.8 million in cash and no debt, Cato maintains robust liquidity and financial flexibility. Same-store sales rose 9% in Q2 despite 65 fewer stores, reflecting higher productivity and merchandising gains.
However, risks persist: tariff costs are rising, e-commerce remains under 5% of sales, and accelerated store closures suggest structural headwinds. The company also suspended its dividend and shows limited credit segment growth. Trading at just 0.48X P/B vs. 6.52X for its sub-industry, valuation reflects these challenges.
(You can read the full research report on Cato here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.