Top Research Reports for Bank of America, Accenture & ServiceNow

Wednesday, March 12, 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 Bank of America Corp. (BAC), Accenture plc (ACN) and ServiceNow, Inc. (NOW), as well as two micro-cap stocks Tile Shop Holdings, Inc. (TTSH) and Moving iMage Technologies, Inc. (MITQ). 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 >>> CPI +0.2%, Inflation Rate +2.8%: Lower than ExpectedToday's Featured Research ReportsShares of Bank of America have gained +12.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +22.1%. The company’s volatile nature of the trading business is a major headwind. Despite an impressive performance since 2022, it is expected to normalize going forward. This is likely to hamper fee income growth.The Zacks analyst project non-interest income to rise only 3.4% in 2025. Continued investments in the franchise will keep the company’s expenses elevated. We expect total non-interest expenses to rise 3% this year.While high funding costs are still a woe, the company’s net interest income (NII) will be positively impacted by higher rates for longer. We expect NII to record a CAGR of 5.3% over the next three years. Plans to open financial centers in new and existing markets and improve digital capabilities will aid the top line. We project total revenues to grow 4.8% in 2025.(You can read the full research report on Bank of America here >>>)Accenture’s have underperformed the Zacks Computers - IT Services industry over the past year (-12% vs. -6.7%). The company is facing rising competition that has led to increased talent costs and pricing pressures. Rapid acquisitions have made the company prone to integration risks. The stock has declined 13.4% in a year and we have a Neutral recommendation for it in anticipation of a better entry.Nevertheless, Accenture’s growth strategy focuses on delivering 360-degree value to stakeholders, making the stock attractive. This consulting services provider thrives on the robust demand for application modernization and maintenance, cloud enhancements, and cybersecurity.Over the years, Accenture has leveraged buyouts to strengthen digital technology and capital project capabilities. Its cash position allows the company to explore different markets. Dividend-seeking investors will find this stock appealing. Also, its liquidity position is a tailwind.(You can read the full research report on Accenture here >>>)Shares of ServiceNow have outperformed the Zacks Computers - IT Services industry over the past year (+4.1% vs. -6.7%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 2,109 total customers with more than $1 million in annual contract value (ACV) at the end of the fourth quarter, which represents 14% year-over-year growth in customers.ServiceNow had 19 deals greater than $5 million in net new ACV. It closed 170 deals greater than $1 million net new ACV. Generative Artificial Intelligence (Gen AI) deals continued to gain traction.ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. Pro Plus AI grew 150% sequentially. It is riding on an expanding partner base and acquisitions. However, NOW is suffering from stiff competition and unfavorable forex.(You can read the full research report on ServiceNow here >>>)Tile Shop's shares have declined -4.7% over the past year against the Zacks Building Products - Retail industry’s decline of -6.1%. This microcap company with market capitalization of $287.15 million has seen comparable store sales decline 7.8% in 2024, resulting in a 78.2% fall in operating income. SG&A remains high, and inventory write-offs persist. Persistent macroeconomic pressures, including high interest rates and weak home sales, continue to suppress demand.Rising costs and inventory challenges pose additional risks, while the lack of store expansion limits future revenue growth. Nevertheless, Tile Shop's gross margin grew 130 bps to 65.7% in 2024, aided by lower freight costs and supplier negotiations.It maintains a strong balance sheet with no debt and $20.9 million in cash, up from $8.6 million in 2023, supported by $27.1 million in operating cash flow. Growth initiatives include the relaunch of its high-margin Superior installation line (whose sales volumes improved in fourth-quarter 2024) and an expanded entry-level product assortment.(You can read the full research report on Tile Shop here >>>)Shares of Moving iMage Technologies have underperformed the Zacks Technology Services industry over the past year (-11.6% vs. +40.1%). This microcap company with market capitalization of $5.08 million has seen revenues decline 12.2% YoY to $8.7 million in the first half of fiscal 2025. Its reliance on one-time high-margin orders creates earnings volatility, while slow adoption of industry upgrades delays revenue recognition. Customer and supplier concentration risks persist.Nevertheless, MiT is expanding its product portfolio with high-margin offerings like LEA Professional amplifiers, CineQC, and MiTranslator, enhancing its market reach beyond traditional cinema. Favorable industry trends, including rising investments in premium cinematic experiences and technology upgrades, position MiT for growth.Gross margins improved to 26.5% in the first half of fiscal 2025. Liquidity remains strong with $5.3 million in cash and no long-term debt, supporting expansion. Strategic customer acquisition, European market entry, and increasing demand for accessibility solutions further strengthen MiT’s long-term growth potential.(You can read the full research report on Moving iMage Technologies here >>>)Other noteworthy reports we are featuring today include The Southern Co. (SO), Arch Capital Group Ltd. (ACGL) and Atmos Energy Corp. (ATO).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 ReadBranch Openings, High Rates Aid BofA (BAC), Fee Income AilsAcquisition Strategy Aid Accenture (ACN), Talent Costs AilGrowing Customer Base Drives ServiceNow's (NOW) ProspectsFeatured ReportsSouthern (SO) Set to Benefit from Rising Data Center DemandThe Zacks analyst believes that Southern Company's commitment to data center contracts positions it for significant revenue growth, though high debt levels may limit some financial flexibility.Product Diversification, Rate Hike Aid Arch Capital (ACGL)Per the Zacks analyst, Arch Capital is set to grow on rate increases, growth in existing accounts and global operations. However, exposure to cat loss induces earnings volatility.Investments and Customer Additions Aid Atmos Energy (ATO)Per the Zacks analyst, Atmos Energy will benefit from long-term capital expenditure plan. Industrial customer additions and constructive rate outcomes will boost its performance.Biogen's (BIIB) Multiple Sclerosis Sales Fall, New Drugs AidSales of multiple sclerosis drugs and Spinraza are declining due to competitive pressure. The Zacks analyst believes Biogen's new products like Leqembi, Skyclarys and Zurzuvae can help revive growth.Flow Control Division Drives Flowserve (FLS), High Debt AilsPer the Zacks analyst, Flowserve is witnessing strength in the Flow Control Division unit, fueled by solid bookings across general industries and oil & gas markets. High debt level remains a concern.Worldpac Sales Aid Advance Auto (AAP) Amid Rising CapexPer the Zacks analyst, proceeds from Worldpac sale can provide Advance Auto the necessary capital to drive growth and improve profitability. However, rising capital expenditure remains a concern.Phibro (PAHC) Gains Ground on Expanding Animal Health BusinessThe Zacks analyst is impressed with Phibro's Animal Health business, which demonstrated a strong 32.5% sales growth in the second quarter of fiscal 2025. New UpgradesUbiquiti (UI) Rides on Strong Demand, Solid Free Cash FlowPer the Zacks analyst, healthy momentum in the Enterprise Technology segment backed by the growing adoption of IoT devices across industries will likely drive Ubiquiti's top line.Strong Demand for Key Drugs Drive BioMarin's (BMRN) SalesWhile BioMarin's key drugs like Vimzim and Naglazyme continue to drive sales, the Zacks Analyst is encouraged by rapid uptake for dwarfism drug Voxzogo which has opened up a new sales opportunity.Gap's (GAP) Brand Strength & Other Initiatives Progress WellPer the Zacks analyst, Gap has been smoothly progressing on the reinvigoration of its brands. The company is well on track with its cost-control efforts and disciplined inventory management.New DowngradesUPS' Prospects Hurt by Weak Demand & Escalated Labor CostsThe Zacks analyst is concerned about the demand weakness due to a decline in the volume of packages shipped. High labor costs represent another concern.Steve Madden (SHOO) Margin Shrinks on Higher PromotionsPer the Zacks analyst, Steve Madden is grappling with lower gross margin. In fourth quarter this metric fell 130 bps y/y due to business mix shifts and higher promotional activity in DTC sales.Low Spending, E-Commerce Shift to Hurt SITE Centers (SITC)Per the Zacks analyst, limited customers' willingness to spend an amid inflationary environment, rising e-commerce adoption and potential tenant bankruptcies offer a bleak prospect for SITE Centers.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Bank of America Corporation (BAC): Free Stock Analysis Report Southern Company (The) (SO): Free Stock Analysis Report Accenture PLC (ACN): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Tile Shop Hldgs, Inc. (TTSH): Free Stock Analysis Report Moving iMage Technologies, Inc. (MITQ): 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