Top Stock Reports for Cisco, Caterpillar & CME

Thursday, April 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 Cisco Systems, Inc. (CSCO), Caterpillar Inc. (CAT) and CME Group Inc. (CME), as well as two micro-cap stocks EVI Industries, Inc. (EVI) and Franklin Financial Services Corp. (FRAF). 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 >>> Tariff Policies Send Pre-Market Futures Down -4%Today's Featured Research ReportsCisco’s shares have outperformed the Zacks Computer - Networking industry over the past year (+31.4% vs. +30.2%). The company’s business model has evolved with subscription revenues accounting for more than half of its total revenues. Increase in recurring revenue base bodes well for investors. Splunk acquisition enhances its recurring revenue base.The buyout significantly expands Cisco’s portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco’s security portfolio. However, it has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition. Cisco’s prospects are further challenged in the AI-driven networking space due to stiffening competition.(You can read the full research report on Cisco here >>>)Shares of Caterpillar have declined -5.8% over the past year against the Zacks Manufacturing - Construction and Mining industry’s decline of -8.6%. The company’s Energy & Transportation segment has shown improved performance, helping offset weaker volumes in Resource Industries and Construction Industries segments in the past few quarters. This trend will continue in 2025, which, along with its solid 2024-end backlog of $30 billion, should support its top line. Weakness in the 10-ton and above excavator market in China and tariff impact remain concerns. Going forward, the Construction Industries segment is set to gain from increased construction activities in the United States and globally.Resource Industries will be supported by rising commodity demand, driven by energy transition. The Energy & Transportation segment will gain on strong demand across all applications. Focusing on aftermarket parts and service-related revenues, which generate high margins, will also aid growth.(You can read the full research report on Caterpillar here >>>)CME’s shares have outperformed the Zacks Securities and Exchanges industry over the past year (+29.5% vs. +28.2%). The company’s strong market position, driven by varied derivative product lines, bodes well. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a stable global presence are encouraging. While higher electronic trading volume adds scalability, product innovation and a growing proportion of volume from customers outside the United States have been driving results. Solid liquidity supports wealth distribution to shareholders. However, escalating expenses due to higher technology costs are likely to put pressure on its margins. Also, its diversified product portfolio is significantly exposed to volatile interest rates, stricter government regulations and limited credit availability in unstable capital and credit markets.(You can read the full research report on CME here >>>)Shares of EVI have underperformed the Zacks Industrial Services industry over the past year (-22.5% vs. -8.6%). This microcap company with market capitalization of $224.12 million have seen operating cash flow declined 79.9% YoY. SG&A expenses are rising faster than revenues, pressuring margins and scalability. Liquidity remains tight, with just $3.9 million in cash.Nevertheless, EVI Industries is poised for accelerated growth through its transformative acquisition of Girbau North America, which is expected to be immediately accretive to earnings. The deal expands EVI’s North American footprint and enhances operational scale, OEM relationships, and strategic sourcing. Since 2016, EVI has delivered robust multi-year growth — 31% revenue CAGR, 19% net income CAGR — driven by disciplined M&A, decentralized operations, and reinvestment in sales and service. Regional expansion continues with recent Midwest acquisitions, adding $85M in pro forma revenues. EVI benefits from industry tailwinds in healthcare, hospitality and sustainability trends.(You can read the full research report on EVI here >>>)Franklin Financial’s shares have outperformed the Zacks Banks - Northeast industry over the past year (+54.3% vs. +18.5%). This microcap company with market capitalization of $157.77 million offers a compelling investment case supported by robust 11.2% loan growth driven by commercial real estate and residential lending, alongside a 15.7% rise in average loan balances. Strong deposit expansion of 18.1% enhances funding stability, with 85% of deposits insured or collateralized. The Wealth Management division boosts noninterest income and diversification, with AUM up 6.4%. A strategic $4.3 million securities restructuring enhances long-term profitability despite short-term earnings drag.Asset quality remains exceptional, with NPAs (Non-Performing Assets) at 0.01% and ACL (Allowances for Credit Losses) at 1.26%. Investments in technology and Salesforce integration improve operational efficiency, while capital strength (13.85% risk-based ratio) supports shareholder returns via dividends and buybacks. Franklin is well-positioned for sustainable growth and margin expansion.(You can read the full research report on Franklin Financial here >>>)Other noteworthy reports we are featuring today include Lennar Corp. (LEN), Teva Pharmaceutical Industries Ltd. (TEVA) and EMCOR Group, Inc. (EME).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 ReadCisco (CSCO) Benefits From Strong Security Products AdoptionStrong Backlog to Aid Caterpillar (CAT) Despite Weak VolumesCME Group (CME) Rides on Improving Top Line, Costs HighFeatured ReportsStrategic Plans Aid Lennar (LEN), High Mortgage Rates HurtPer the Zacks analyst, Lennar is benefiting from its focus on the land & asset-light model and incentive offerings. However, a still high mortgage rate and elevated homebuilding costs mar prospects.TEVA's New Drugs & Generic Stability Are Reviving GrowthThe Zacks analyst believes newer drugs, Austedo and Ajovy as well as a stable generics business are reviving its top-line growth.Ulta Beauty (ULTA) Benefits From Skincare Category StrengthPer the Zacks analyst, Ulta Beauty has been benefiting from solid skincare sales. In fourth-quarter fiscal 2024, skincare saw mid-single-digit comp growth, fueled by strong growth in body care items.WIX Rides on Healthy Bookings, Studio Uptake Amid Forex WoesPer the Zacks analyst, solid bookings driven by strong creative subscriptions and adoption of business solutions are driving Wix. Expanded international footprint exposes it to FX volatility.CACI International (CACI) Gains From Contract Wins, AcquisitionsPer the Zacks analyst, CACI International is benefiting from new contract wins related to IT modernization. Key acquisitions of Applied Insight and Azure Summit bode well for its growth.NOV Inc. (NOV) to Benefit from Large Installed Base of RigsThe Zacks analyst believes that NOV's extensive global fleet of rigs will generate a stable, recurring revenue stream but is concerned about growing competition in drilling technology.Solid Codman Business Aids Integra (IART) on Product UptakesThe Zacks analyst is positive about the fact that despite the pandemic-led slowdown, Integra's Codman Specialty Surgical arm is showing organic growth across neurosurgery franchises on new launches.New UpgradesRobust 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.Robust Digital Business Key to Ralph Lauren's (RL) GrowthPer the Zacks analyst, Ralph Lauren is advancing its digital and omnichannel growth with investments in mobile and fulfillment strategies. This led to strong digital growth across key regions in Q3.Strength in Motive Power Segment to Benefit EnerSys (ENS)Per the Zacks analyst, EnerSys' Motive Power Segment is driven by increased sales of maintenance-free thin plate pure lead and lithium products. Its shareholder friendly measures are encouraging.New DowngradesDelay in Rate Approval & Seasonality Ail FirstEnergy (FE)Per the Zacks analyst, FirstEnergy's financial condition could be negatively impacted by a delay in base rate request approval. Unfavorable weather conditions might also lower the top line.Competition and Nil Dividend Payout Ails Clean Harbors (CLH)Per the Zacks analyst, intense competition lowers Clean Harbors' pricing power, increases operational expenses, and reduces market share. A Nil dividend payout discourages dividend-seeking investors.Crown Castle (CCI) Hurt by Fiber Segment Sale and High DebtPer the Zacks analyst, fiber segment sale, substantial debt burden and sprint churn are likely to offer bleak prospects for Crown Castle despite steady growth in wireless data consumption.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 CME Group Inc. (CME): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Cisco Systems, Inc. (CSCO): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report Lennar Corporation (LEN): Free Stock Analysis Report Franklin Financial Services Corp. (FRAF): Get Free Report EVI Industries, Inc. (EVI): 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