Top Stock Reports for Apple, Novartis & Charles Schwab

Thursday, September 4, 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 Apple Inc. (AAPL), Novartis AG (NVS) and The Charles Schwab Corp. (SCHW), as well as two micro-cap stocks Community Bancorp (CMTV) and Optex Systems Holdings, Inc (OPXS). 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, 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 >>> August ADP Weaker at +54K, & MoreToday's Featured Research ReportsShares of Apple have gained +7.7% over the past year against the Zacks Computer - Micro Computers industry’s gain of +7.8%. The company is benefiting from strong growth in Services revenues. AAPL now has more than 1 billion paid subscribers across its Services portfolio. Both paid accounts and paid subscriptions grew double digits year over year in third-quarter fiscal 2025. Apple TV+ viewership soared double-digit year over year. Expanding capabilities of AI Intelligence is noteworthy. Apple expects the September quarter’s (fourth-quarter fiscal 2025) net sales to grow mid- to high-single-digits on a year-over-year basis. AAPL expects the Services year-over-year growth rate to be similar to that of the June quarter. Gross margins are expected to be 46-47% in the fourth quarter of fiscal 2025, including a tariff impact of $1.1 billion. Increasing regulatory headwinds and tariffs are a concern for investors. (You can read the full research report on Apple here >>>)Novartis’ shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+12.6% vs. -15.6%). The company’s performance has been good in the last few quarters. Novartis raised its annual guidance for operating income along with second-quarter results. Novartis has a strong and diverse portfolio with drugs like Kisqali, Kesimpta, Pluvicto and Leqvio. The uptakes of Pluvicto and Scemblix have been outstanding and propel top-line growth. Our model estimates for Pluvicto and Kisqali indicate a CAGR of 32.8% and 39.1%, respectively, over the next three years. Approval of new drugs and label expansion of existing drugs should enable Novartis to offset the adverse impacts of the generic competition for key drugs. The recent spate of acquisitions and collaborations has further strengthened its pipeline. However, one of the top drugs, Entresto, is likely to lose patent protection. (You can read the full research report on Novartis here >>>)Shares of Charles Schwab have outperformed the Zacks Financial - Investment Bank industry over the past year (+53.8% vs. +46.2%). Due to relatively higher interest rates and an increased focus on repaying high-cost bank supplemental funding balances, the company’s net interest margin (NIM) will likely get support. The Zacks analyst projects NIM to be 2.68% in 2025. Strategic buyouts and favorable market conditions are likely to drive client assets. We estimate total client assets to reflect a CAGR of 4.7% by 2027. However, operating expenses are likely to remain elevated amid continued investments in marketing, alongside compensation costs. The Zacks analyst expects total expenses to witness a CAGR of 3.8% by 2027. Subdued trading revenue growth is worrisome due to the volatile nature of capital markets amid macroeconomic uncertainties. Nonetheless, a solid balance sheet and liquidity position will likely enable sustainable capital distributions for the company.(You can read the full research report on Charles Schwab here >>>)Community Bancorp’s shares have outperformed the Zacks Banks - Northeast industry over the past year (+38.5% vs. +14.9%). This microcap company with a market capitalization of $126.50 million demonstrates strong earnings momentum, with Q2 2025 net income up 48.8% year over year to $4.1 million, driven by robust loan growth and fee income expansion, while maintaining credit quality and efficiency gains. Deposits grew 9.9% year over year, supporting stable funding and limiting reliance on wholesale sources. Diversified revenues from CFSG enhance non-interest income and client stickiness. Recognition as Vermont’s Best Bank strengthens brand and regional market position. However, risks include year-to-date asset contraction, rising funding costs pressuring margins, modestly higher credit provisioning, securities valuation sensitivity, expense growth outpacing revenues, and competitive/regulatory headwinds. Execution on technology and efficiency will be key to sustaining growth.(You can read the full research report on Community Bancorp here >>>)Shares of Optex Systems have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+54% vs. +39.2%). This microcap company with a market capitalization of $81.17 million is delivering strong revenue (+22.3%) and operating income growth (+43.8%) amid rising military demand and improved operational efficiency. Key contract wins, like a $10.2 million Abrams sighting system deal, strengthen its backlog and reinforce its niche in battlefield optics. With $4.9 million in cash, no debt, and positive cash flow, Optex maintains financial flexibility for reinvestment or shareholder returns. Segment strength in defense optics (Richardson +34.3%, AOC +10.3%) aligns with higher-margin products and DoD modernization trends. However, risks include stagnant backlog, customer concentration and an unclear capital deployment strategy. A relocation effort to Texas adds short-term execution risk. Despite these, OPXS trades at deep discounts: EV/Sales (1.93X) vs. sub-industry (11.24X), and EV/EBITDA (11.07X) vs. sub-industry (71.08X), with shares up 71% YTD.(You can read the full research report on Optex Systems here >>>)Other noteworthy reports we are featuring today include Edwards Lifesciences Corp. (EW), Kimberly-Clark Corp. (KMB) and Western Digital Corp. (WDC).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 ReadStrong Services to Aid Apple (AAPL) Amid Tariff HeadwindsKisqali, Pluvicto Drive Novartis (NVS) Amid Competition Client Assets & Higher Rates to Aid Charles Schwab (SCHW)Featured ReportsEdwards (EW) Banks on Surgical Strength, Macro Woes StayThe Zacks analyst is impressed with the strong demand of Edwards Lifesciences' premium RESILIA products and procedural volume growth in Surgical product group. Macroeconomic issues may dent growth.Kimberly-Clark's (KMB) Strategic Efforts Appear EncouragingPer the Zacks analyst, Kimberly-Clark's focus on innovation, consumer-centric approach and strategic investments in product development have been leading to successful launches and market expansion.Acquisitions & Diverse Customer Base Aid NRG Energy (NRG)Per the Zacks analyst, NRG Energy's organic and inorganic acquisitions, is likely to boost its results. Its diverse customer base and ability to retain customers enhance its financial performance.Expansion Aid Extra Space Storage (EXR), Price Pressure AilsPer the Zacks Analyst, EXR is poised to gain from its focus on store expansion through accretive buyouts, joint venture partnerships and third-party management services. Yet, pricing pressure ails.Reinsurance Group of America (RGA) Gains from Pension Deals, Costs AilPer the Zacks analyst, RGA benefits from favorable life reinsurance pricing and growing pension risk transfer business, though higher expenses and forex volatility weigh on margins.Genpact (G) Benefits From Digital SEPs Amid High Talent CostPer the Zacks analyst, Digital Smart Enterprise Processes (SEP) enhances the performance of Genpact's clients' business processes using AI. A competitive talent market remains a concern.Matador (MTDR) Gains From Drilling & Completion EfficiencyThe Zacks analyst likes Matador as it is making impressive improvements in drilling and completion efficiency. However, heavy reliance on oil price is concerning.New UpgradesWestern Digital (WDC) Poised for Growth on AI Storage & HDD DemandPer the Zacks analyst, Western Digital's performance is being driven by higher demand for HDD storage and Agentic AI. It has formulated strategies to tackle macro and geopolitical woes.Investments and Cost Control Efforts Aid AGCO Corp. (AGCO)The Zacks analyst expects AGCO to offset lower volumes through cost controls and focus on strategic investments to expand product lines and improve factory productivity.Pricing Power from Tariffs and Upcoming Projects Boost CENXPer the Zacks Analyst, U.S. Section 232 tariffs have strengthened CENX's pricing power, enhancing profitability. Mt Holly restart and upcoming smelter projects are also expected to boost efficiency.New DowngradesLower Prices, Weak Demand Ail Huntsman (HUN)Per the Zacks analyst, lower selling prices due to competitive pressure will weigh on the company's margins. Softer demand in Europe will also hurt sales volumes.Elevated Expenses Likely to Mar Zscaler's (ZS) ProfitabilityPer the Zacks Analyst, elevated expenses for enhancing sales & marketing capabilities, along with increased investments in research & development, are likely to dampen Zscaler's profitability.Dismal Comps & High Costs Hurt Wendy's (WEN) Performance Per the Zacks analyst, Wendy's performance is being hurt by dismal U.S. systemwide sales stemming from softer traffic trends. Also, higher commodity costs and wage inflation are concerns.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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 Novartis AG (NVS): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Western Digital Corporation (WDC): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Edwards Lifesciences Corporation (EW): Free Stock Analysis Report Kimberly-Clark Corporation (KMB): Free Stock Analysis Report Community Bancorp. (CMTV): Get Free Report Optex Systems Holdings Inc. (OPXS): 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