Top Stock Reports for Charles Schwab, Gilead Sciences & Medtronic

Tuesday, February 25, 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 The Charles Schwab Corp. (SCHW), Gilead Sciences, Inc. (GILD) and Medtronic plc (MDT), as well as two micro-cap stocks Cooper-Standard Holdings Inc. (CPS) and Rave Restaurant Group, Inc. (RAVE). 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 Try Again to Ramp HigherToday's Featured Research ReportsShares of Charles Schwab have gained +26.5% over the past year against the Zacks Financial - Investment Bank industry’s gain of +46.8%. Falling interest rates and a focus on repaying high-cost bank supplemental funding balances will support the company’s net interest margin (NIM) expansion. The Zacks analyst projects NIM to be 2.13% in 2024. Buyouts have increased the company’s client assets. According to the Zacks analyst estimates total client assets to see a CAGR of 9.7% by 2026. As the company deals with low-yielding assets on its balance sheet, it plans to shrink itself to sustain profits and rely more on off-balance sheet arrangements to house deposits. This will likely exert pressure on its top-line growth.We project total revenues to rise just 2.8% in 2024. High costs will hurt profitability. Though we estimate total expenses to fall in 2024, they will increase in 2025. Nonetheless, solid capital distributions are a positive.(You can read the full research report on Charles Schwab here >>>)Gilead Sciences’ shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+48.4% vs. -7.3%). The company reported better-than-expected fourth-quarter results and provided an upbeat guidance for 2025. Gilead’s flagship HIV therapy, Biktarvy, continues to maintain its strong growth, fueling the top line. Gilead Sciences’ efforts to develop better HIV treatments are commendable. Recent data validate lenacapavir’s potential to prevent HIV. A potential approval of lenacapavir should be a significant boost for Gilead. The company has strong quarterly results and guidance for 2025. Zack analyst sales estimates for Biktarvy indicate a CAGR of around 4.5% over the next three years. Gilead's efforts to bolster its oncology and virology franchises through internal pipeline development and collaborations are impressive as well. However, the cell therapy franchise is facing challenges.(You can read the full research report on Gilead Sciences here >>>)Shares of Medtronic’s have outperformed the Zacks Medical - Products industry over the past year (+14.7% vs. +14.5%). The company is strategically expanding its global presence to address the unmet demand for advanced medical devices. Within Cardiovascular, Medtronic is gaining market share, banking on product launches in CRM and Structural Heart. Hypertension disease has brought multibillion-dollar opportunities. In MedSurg, despite all distributor disruptions, Medtronic is scaling the production of Hugo RAS. The Neuroscience portfolios continue to contribute. Further, the company’s Pacing business continued to drive strong growth banking Micra leadless pacemaker. Innovations and market expansion efforts are helping it offset the impact of the inflation and supply disruptions. Medtronic’s strong liquidity position should allow it to meet its near-term debt obligations. All these factors support our bullish stance on the stock.(You can read the full research report on Medtronic here >>>)Cooper-Standard’s shares have underperformed the Zacks Automotive - Original Equipment industry over the past year (-5.5% vs. -2.3%). This microcap company with market capitalization of $255.39 million expanded margins despite lower revenue, with fourth-quarter adjusted EBITDA increasing 96.8% year-over-year to $54.3 million. Cost optimizations delivered over $100 million in savings, and management aims for double-digit margins by the fourth quarter of 2025. Net new business reached $181.4 million, with 58% tied to electric vehicles, boosting content per vehicle. Proprietary innovations and partnerships with major original equipment manufacturers enhance competitiveness. However, high debt of $1.06 billion and rising interest costs of $97.3 million in 2024, projected at $105 million to $115 million in 2025, pose risks. Cooper-Standard reported a net loss of $78.7 million in 2024 as revenue declined 3% to $2.73 billion. Weak global auto production, foreign exchange headwinds, and pricing pressure from automakers could challenge its 2025 margin target.(You can read the full research report on Cooper-Standard here >>>)Shares of Rave Restaurant have outperformed the Zacks Retail - Restaurants industry over the past year (+35.6% vs. +8.5%). This microcap company with market capitalization of $42.22 million witnessed 19 consecutive quarters of positive earnings. In second-quarter fiscal 2025, net income rose 9.8% to $0.6 million, with adjusted EBITDA up 50.6% to $0.8 million, highlighting strong cost control and financial discipline. Rave Restaurant maintains a solid balance sheet with $2.9 million in cash, $6 million in short-term investments, and no long-term debt, enabling strategic reinvestment. Pizza Inn posted a modest 0.8% same-store sales increase, with 30 new locations under development. Yet, Pie Five’s sales fell 11.4%, and its store count declined, signaling ongoing challenges. Revenues grew 4.5% to $2.9 million but inflationary pressure and slow sales growth pose challenges. RAVE’s reliance on supplier incentives, its limited scale and its digital lag pose risks. The execution of growth strategies holds the key.(You can read the full research report on Rave Restaurant here >>>)Other noteworthy reports we are featuring today include Eni S.p.A. (E), Coinbase Global, Inc. (COIN) and PG&E Corp. (PCG).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 ReadLower Rates, Balance Sheet Restructuring Aid Schwab (SCHW)HIV Franchise Fuel Gilead (GILD) Amid Pipeline SetbacksMedtronic (MDT) Core Wings Expand, Cardiovascular Sales RiseFeatured ReportsEni's (E) Upstream Gains and Renewables Drive Future GrowthEni's upstream growth, fueled by new hydrocarbon discoveries and renewable capacity expansion, supports long-term growth. However, its heavy debt reliance concerns the Zacks analyst.Infrastructural Investments Aids PG&E Corporation (PCG)Per the Zacks analyst, PG&E makes systematic investments in gas-related projects and electric system safety and reliability to further strengthen its grid.Acquired Businesses Aid Quanta (PWR) Amid Inflation RisksPer the Zacks analyst, Quanta is gaining from increased demand for infrastructure solutions coupled with accretive acquisitions. However, lingering inflation and supply chain risks hurt prospects.CDW Benefits From Strong Market Demand Amid Macro HeadwindsPer the Zacks analyst, improvements in customer spending across various market segments is driving CDW's top-line performance. Macroeconomic volatility in the international market remains concern.Dividends & Buyback Aid C.H. Robinson (CHRW) Amid High DebtPer the Zacks Analyst, C.H. Robinson's measures to reward shareholders through dividends and share buybacks are encouraging. High debt remains a concern.Strength in Datacenter End Market Aids Semtech (SMTC) GrowthPer the Zacks analyst, Semtech is benefiting from strength in the datacenter end market, due to the increasing demand for low-latency, high-efficiency connectivity solutions in AI-driven datacenters.RingCentral (RNG) Rides on Strong Portfolio, Partner BasePer the Zacks analyst, RingCentral benefits from solid demand for its Unified Communications as a Service and contact center software-as-a-service solutions.New UpgradesCoinbase (COIN) Boasts Revenue Growth, Solid Balance SheetPer the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues. Its solid balance sheet provides financial flexibility.Sprouts Farmers' (SFM) Omnichannel Offering to Propel SalesPer the Zacks analyst, Sprouts Farmers' assortment of better-for-you products, focus on providing hassle-free shopping through omnichannel offering & a network of fresh distribution centers bode wellRising Loans & Deposit Balances Aid BOK Financial (BOKF)Per the Zacks analyst, BOK Financial's organic strength is reflected by rising loans and deposit balances. Improving asset quality is an added advantage.New DowngradesIntense Obesity Market Rivalry Weigh-In on Novo Nordisk (NVO)Novo Nordisk's intense competition from Eli Lilly in the obesity market along with pricing pressure in the United States, concerns the Zacks Analyst.Expected Decline in Shipment & High Debt to Ail Harley (HOG)Per the Zacks analyst, Harley's wholesale shipments are expected to decline due to efficient inventory management by dealers, hurting top-line growth. The high debt level is also concerning.Currency Risks, High Costs Ail International Flavors (IFF)The Zacks analyst is concerned that high costs for raw material, labor and shipping as well as currency-translation risks will likely hurt International Flavor' results in the near term.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See 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 Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Eni SpA (E): Free Stock Analysis Report Rave Restaurant Group, Inc. (RAVE): Free Stock Analysis Report Cooper-Standard Holdings Inc. (CPS): 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