Top Analyst Reports for Oracle, IBM & Merck

Wednesday, May 14, 2025The 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 Oracle Corp. (ORCL), IBM Corp. (IBM) and Merck & Co., Inc. (MRK), as well as a micro-cap stock Earth Science Tech, Inc. (ETST). 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 StreetThe 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 and attempts 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 >>> No Econ Reports Equals Good News in Pre-MarketToday's Featured Research ReportsOracle’s shares have outperformed the Zacks Computer - Software industry over the past year (+39.2% vs. +10%). The company is gaining from the ongoing momentum across its cloud business, driven by the strong uptake of Oracle Cloud Infrastructure and Autonomous Database offerings, including from winning cloud-computing contracts from AI-focused startups.The solid adoption of cloud-based applications, comprising NetSuite Enterprise Resource Planning (ERP) and Fusion ERP, bodes well. ORCL’s partnership with Amazon for Oracle Database@AWS and general availability of Oracle Database@Google holds promise. Oracle’s Gen 2 Cloud is driving artificial intelligence clientele. Its share buybacks and dividend policy are noteworthy.The Zacks analyst expects 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 IBM have outperformed the Zacks Computer - Integrated Systems industry over the past year (+61.5% vs. -2.5%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting. The company’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul.IBM’s core technology platform for AI capabilities watsonx is gaining significant market traction across industries. The company is collaborating with SAP to tap generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms.However, stiff competition in various end markets is straining profits. Stringent cost-cutting efforts to boost margins beyond a certain threshold are likely to impact product quality. IBM’s frequent acquisitions have escalated integration risks.(You can read the full research report on IBM here >>>)Merck’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (-26% vs. -4.7%). The company’s 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 the drug.Nevertheless, Merck’s first-quarter earnings and sales beat estimates. Its blockbuster drug, Keytruda, and new products have been driving 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, including Keytruda, which should drive long-term growth. Merck is investing in M&A activity to strengthen its pipeline.(You can read the full research report on Merck here >>>)Shares of Earth Science Tech have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+11.4% vs. -7.8%). This microcap company with market capitalization of $42.53 million posted a 311.6% year-over-year revenue surge to $24.4 million for the nine months ended Dec. 31, 2024, driven by RxCompound and Peaks. The vertically integrated model, new revenue from shipping and balanced customer mix support scalability.Operating cash flow rose to $2.4 million, reflecting tighter working capital controls. Gross margin held firm at 72.7% despite a 1,151% spike in salaries. Strategic acquisitions expanded pharmacy and telehealth capabilities, but integration, liquidity ($0.5 million cash against $2.3 million liabilities), and revenue concentration risks loom.Share buybacks amid short-term debt, opaque marketing ROI, and thin net margins (8.5%) raise sustainability questions. Execution and financial discipline will be critical to support ongoing growth. The P/B ratio signals premium pricing based on asset expectations.(You can read the full research report on Earth Science Tech here >>>)Other noteworthy reports we are featuring today include CVS Health Corporation (CVS), MetLife, Inc. (MET) and Coinbase Global, Inc. (COIN).Mark VickerySenior EditorNote: 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>>>Today's Must ReadOracle (ORCL) Gains from Cloud Suite Adoption & PartnershipsIBM Rides on Strong Customer Growth in Software SegmentKeytruda Drives Merck (MRK) Sales Amid Gardasil China Issues Featured ReportsHealthcare Delivery Aids CVS Health (CVS), Macro Woes StayThe Zacks analyst is impressed with solid revenue gains in CVS Health's Healthcare Delivery business, led by robust patient growth at Oak Street. Yet, shifting macroeconomy may hurt its operations. Acquisitions & Cost-Cutting Initiatives Aid MetLife (MET)Per the Zacks analyst, several acquisitions and partnerships will continue to bolster the capabilities and global presence of MetLife. Efforts to control costs should drive its margins.Coinbase (COIN) Banks on Improving Top Line, Expenses HurtPer the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues. However, escalating expenses hurt its margins.Yum! Brands (YUM) Banks on Digital Efforts, High Costs HurtPer the Zacks analyst, Yum! Brands is likely to from digital efforts, increased kiosk adoption and unit expansion efforts. However, high costs and macro woes ail.Loan Growth Supports M&T Bank (MTB), Rising Costs a WoePer the Zacks analyst, M&T Bank's increasing loans and deposit balances are supporting its financials. Yet, investments in strengthening its franchise will keep expenses elevated.Wabtec (WAB) Benefits From Segmental Strength Amid Rising ExpensesPer the Zacks Analyst, Wabtec's top line is benefitting from higher sales across its Freight and Transit segments. Rising expenses pose a threat to the company's bottom line.Antero Resources (AR) to Gain from Vast Appalachia AssetsPer the Zacks analyst, Antero Resources is poised for growth with a strong foothold in the Appalachian Basin, backed by extensive premium drilling locations in Marcellus and Utica Shales.New UpgradesSteady Tower Demand Aids Crown Castle (CCI), Debt Burden AilPer the Zacks Analyst, Crown Castle's efforts to augment tower business bode well amid the rising wireless connectivity usage. Yet, customer concentration and high interest expenses ail.Seagate (STX) Rides on Mass Capacity Demand Amid High DebtPer the Zacks analyst, Seagate's performance is gaining from improving demand for mass capacity storage solutions and expansion into the SSD storage market. However, high indebtedness is a concern.Increasing Solar Projects Drive Emeren (SOL) Amid Supply Chain IssuesPer the Zacks analyst, Emeren is likely to benefit from its expanding solar projects worldwide. Yet supply chain issues result in delays and increase costs.New DowngradesChallenges in RV Market & Rising Expenses to Ail Thor (THO)Per the Zacks analyst, the anticipated challenges in the RV market are likely to hurt Thor's top-line growth. Rising SG&A expenses are likely to exert pressure on profit margins.Weakness in PTI Sector to Hurt MRC Global Amid Forex WoesPer the Zacks analyst, MRC Global is struggling with poor performance of the Production & Transmission Infrastructure sector due to completion of large projects. Forex woes are an added concern.Target (TGT) Struggles as Shoppers Cut Back on SpendingPer the Zacks analyst, Target's fourth quarter shows troubling signs with a decline in average transaction size, highlighting deepening consumer cutbacks. The average transaction amount fell 0.6%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report MetLife, Inc. (MET): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Earth Science Tech, Inc. (ETST): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks