Top Analyst Reports for Costco, AT&T and Marsh & McLennan

Monday, March 3, 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 Costco Wholesale Corp. (COST), AT&T Inc. (T) and Marsh & McLennan Companies, Inc. (MMC), as well a micro-cap stock Air T, Inc. (AIRT). 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 >>> Pre-Markets Pick Up Where Friday Left OffToday's Featured Research ReportsCostco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+41.9% vs. +19.4%). The company being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.The Zacks analyst expects Costco to register an 11.5% adjusted earnings per share improvement in fiscal 2025 on 6.6% revenue growth. This outlook reflects Costco’s ability to navigate the challenging operating environment, generate solid sales, and register high membership renewal rates.A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming. While trading at a premium to its peers, its long-term growth prospects should help the stock see a solid upside.(You can read the full research report on Costco here >>>)Shares of AT&T have outperformed the Zacks Wireless National industry over the past year (+62.9% vs. +48.9%). The company remains focused on business transformation efforts to augment operational efficiency and facilitate the optimum utilization of resources to enhance value. Solid 5G traction and fiber subscriber growth are key growth drivers.AT&T has collaborated with Microsoft to move its 5G mobile network to the latter’s cloud. This will enable the company to enhance productivity and deliver large-scale network services to meet customers’ needs. Collaboration with Nokia to streamline network services, improve automation and accelerate deployment timelines is a positive factor.However, intensifying competition in a highly saturated wireless market will likely impact profits. The steady decline in linear TV subscribers and legacy services is a potent headwind. Healthy discounts and freebies to woo customers dent margins.(You can read the full research report on AT&T here >>>)Marsh & McLennan’s shares have gained +15% over the past year against the Zacks Insurance - Brokerage industry’s gain of +34.6%. The company’s fourth-quarter earnings beat estimates. Marsh & McLennan is well-positioned for growth due to strategic acquisitions, new product launches and diversification into emerging markets. Its $7.75 billion McGriff acquisition is expected to significantly expand its middle-market reach.MMC’s revenues have surged owing to its broad geographic presence, robust client retention and the solid performance of the Risk and Insurance Services unit. Strong cash flow supports its ongoing investments and impressive dividend increases. The company also returns capital to shareholders through share repurchases.However, rising operating costs due to higher compensation and benefits are likely to impact margins. Its debt-laden balance sheet and lower investment income are concerns. As such, the stock warrants a cautious stance.(You can read the full research report on Marsh & McLennan here >>>)Shares of Air T have outperformed the Zacks Transportation - Air Freight and Cargo industry over the past year (+8.5% vs. -9.1%). This microcap company with market capitalization of $47.19 million reported a 22.2% revenue increase to $77.9 million in third-quarter fiscal 2025 from $63.8 million in the prior-year quarter, with growth across all core segments.Overnight Air Cargo revenue rose 5.4% to $30.6 million, Ground Equipment Sales surged 40.3% to $11.8 million and Commercial Jet Engines & Parts grew 35.4% to $32.7 million. Operating income improved to $1.8 million from a $1.6 million loss, while adjusted EBITDA reached $2.7 million against a loss of $0.1 million in the year-ago period. Contrail Aviation remains a key growth driver, benefiting from aftermarket demand.However, risks include $105.4 million in debt, rising interest costs, reliance on FedEx, liquidity pressures and cyclical aviation headwinds. A third-quarter fiscal 2025 net loss of $1.3 million raises concerns about earnings sustainability.(You can read the full research report on Air T here >>>)Other noteworthy reports we are featuring today include Marvell Technology, Inc. (MRVL), General Motors Co. (GM) and LPL Financial Holdings Inc. (LPLA).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 ReadDecent Comparable Sales Run to Fuel Costco's (COST) Top LineAT&T Rides on Healthy Momentum in Postpaid Wireless BusinessRising Revenues Aid Marsh & McLennan (MMC) Amid High CostsFeatured ReportsAcquisitions, AUM to Aid LPL Financial (LPLA), Costs HighPer the Zacks analyst, acquisitions, solid advisor productivity and recruiting efforts will keep aiding LPL Financial's financials. A steady rise in expenses and volatile capital markets are concerns.Investments, Clean Generation Focus Aid PPL Corporation (PPL)Per the Zacks analyst, PPL's strategic investment of $20 billion during 2025-2028 should strengthen its infrastructure. Focus on renewables projects should further boost margins.STERIS (STE) Banks on Healthcare Arm, Stiff Rivalry WorriesThe Zacks analyst is impressed that robust U.S. procedure volumes, along with price and market share gains drive STERIS' Healthcare segment growth. Yet, a fierce competitive landscape poses risk. Investments Aid Edison International (EIX), Rising Costs AilPer the Zacks analyst, systematic capital investment boosts Edison International's infrastructure and customer reliability. Yet, rising wildfire related charges might hurt its bottom line.Aptiv (APTV) Benefits From Hohle Buyout, Rising Costs AilPer the Zacks analyst, the acquisition of Hohle Ltd has boosted Aptiv's Signal and Power Solutions segment. Rising expenses remain a concern.Exelixis' (EXEL) Cabometyx Strong Amid Stiff Competition Per the Zacks analyst, lead drug Cabometyx maintains momentum with continued label expansions and the pipeline development is encouraging. However, competition is stiff. Delek US Holdings' (DK) Permian Focus Drives Growth PotentialThe Zacks analyst believes that Delek US Holdings' strategic position in the Permian Basin and its logistics operations offer growth opportunities, though its elevated debt level remains a concern.New UpgradesSolid Demand Across Data Center Market Aid Marvell (MRVL)Per the Zacks Analyst, Marvell is growing on solid momentum in electro-optics products, custom silicon, storage and switch divisions, which are driving the Data Center end-market revenues.General Motors (GM) to Benefit From Restructuring in ChinaThe Zacks analyst sees promise in General Motors' restructuring efforts in China, which are starting to show results. The company aims to return its China business to profitability this year.Robust Construction Activity & Acquisitions Aid EMCOR (EME)Per the Zacks analyst, EMCOR benefits from high-demand projects, particularly in data centers, semiconductor plants, healthcare and institutional sectors. Also, focus on acquisitions bode well.New DowngradesKeurig Dr Pepper's (KDP) Refreshment Unit & Strategies AidPer the Zacks analyst, Keurig Dr Pepper has been experiencing momentum in the Refreshment Beverages segment for a while. KDP is making substantial strides with its strategy to reshape its portfolio.Rising Costs and Weak Cash Flow Weigh on Acadia Healthcare (ACHC)Per the Zacks analyst, Acadia Healthcare struggles with rising costs which might strain its margins in the future. Declining free cash flows despite rising demand for its services are a concern.Soft Housing Market & High Costs Hurt Mohawk's (MHK) GrowthPer the Zacks analyst, Mohawk is hurting from soft residential demand in its end markets due to affordability concerns. Also, higher material and labor costs add to the risks.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want 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 PPL Corporation (PPL): Free Stock Analysis Report AT&T Inc. (T): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Air T, Inc. (AIRT): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks