Monday, June 1, 2026
The 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 Microsoft Corp. (MSFT), Dell Technologies Inc. (DELL) and Thermo Fisher Scientific Inc. (TMO), as well as two micro-cap stocks Village Super Market, Inc. (VLGEA) and Comstock Holding Companies, Inc. (CHCI). 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 Street
The 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 >>> Pre-Markets Turn South on News from Middle East
Today's Featured Research Reports
Microsoft’s shares have outperformed the Zacks Computer - Software industry over the past year (+0.5% vs. -4.3%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling Productivity and Business Processes revenue growth.
ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. Azure growth guidance projects Q4 growth of 39-40% at cc, suggesting demand saturation, with customer demand exceeding available capacity.
Customer concentration risk remains tied to large OpenAI-related Azure commitments. Microsoft confronts intense competition from AWS and Google Cloud and escalating regulatory scrutiny. Capacity constraints persisting through fiscal year-end limit revenue potential despite unprecedented spending.
(You can read the full research report on Microsoft here >>>)
Shares of Dell have outperformed the Zacks Computer - Micro Computers industry over the past year (+324.3% vs. +60.7%). The company is seeing demand for AI servers stay ahead of supply as customers accelerate deployments and lock in capacity. In first quarter fiscal 2027, the company booked $24.4 billion of AI orders, delivered $16.1 billion of AI server revenue, and ended with a $51.3 billion AI backlog.
Management raised fiscal 2027 revenue guidance to $165-$169 billion and lifted expected AI server revenue to about $60 billion. ISG profitability improved year over year, and traditional servers, storage and commercial PCs are expanding, supporting cash flow and continued buybacks and dividends. DELL’s core leverage ratio was 1.2x exiting the quarter, but the balance sheet remains geared.
However, unfavorable AI mix and memory constraints continues to keep gross margin under pressure. Competitive pricing, and unfavorable forex are other headwinds.
(You can read the full research report on Dell here >>>)
Thermo Fisher’s shares have outperformed the Zacks Medical - Instruments industry over the past year (+23.9% vs. -3.5%). The company is building out its capabilities through the ongoing execution of its proven growth strategy. The year started on a solid note, with several high-impact innovations launched that support the company’s strong positioning in the industry.
Performance across the pharma and biotech end market continues to be driven by the bioproduction business, and the research and safety market channel. The addition of Solventum’s filtration and separation business extends its bioproduction capabilities.
The company’s new acquisition, Clario, further strengthens its position as a partner to pharma and biotech customers and offers an attractive return profile for shareholders. However, ongoing macroeconomic pressures can weigh on Thermo Fisher’s performance. Currency woes and fierce competition add to the worry.
(You can read the full research report on Thermo Fisher here >>>)
Shares of Village Super Market have outperformed the Zacks Retail - Supermarkets industry over the past year (+24.2% vs. +15.4%). This microcap company with a market capitalization of $685.38 million has seen improving sales momentum, strengthening cash generation, and a visible reinvestment pipeline balanced against margin pressure and competitive risks.
Sales rose 5.7% year over year to $1.2 billion in the first half of fiscal 2026, with same-store sales increasing 3.7%, supported by digital growth, store remodels, and strength in fresh and pharmacy categories. Operating cash flow increased to $78.8 million, raising total cash to $161.2 million and improving liquidity metrics, which reduces reliance on external financing and supports capital projects.
However, gross margin declined 50 bps due to lower Wakefern-related income, promotional pressure, and sales mix shifts, highlighting earnings sensitivity in the low-margin grocery model. Despite these risks, the stock trades at significant valuation discounts to peers and the broader market.
(You can read the full research report on Village Super Market here >>>)
Comstock’s shares have outperformed the Zacks Building Products - Home Builders industry over the past year (+71.1% vs. +4.1%). This microcap company with market capitalization of $155.61 million, is transitioning toward a more predictable, fee-based business model, with approximately 90% of Q1 2026 revenues recurring or recognized over time. Revenues increased 38% year over year to $17.4 million, supported by growth across asset management, property management, and ParkX operations.
Expansion of the managed portfolio, including the acquisition of The Reed multifamily property, creates multiple revenue opportunities through management, operational, and ancillary service contracts. The newly established Data Center Platform provides exposure to long-term growth opportunities tied to AI and cloud infrastructure demand.
Key concerns include significant revenue concentration, with related-party customers accounting for 89% of Q1 revenues, negative operating cash flow despite reported profitability, and margin pressures. Current valuation levels remain below broader sector averages.
(You can read the full research report on Comstock here >>>)
Other noteworthy reports we are featuring today include L3Harris Technologies, Inc. (LHX), MasTec, Inc. (MTZ) and Ingersoll Rand Inc. (IR).
Mark Vickery
Senior Editor
Note: 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 Read
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Solid Demand for AI Servers Aids Dell Technologies (DELL) Prospects
New Product Launches, Strategic Acquisitions Aid Thermo Fisher (TMO)
Featured Reports
L3Harris (LHX) Gains From Acquisitions Amid Labor Shortage
Per the Zacks analyst, L3Harris Technologies is likely to benefit from increasing strategic acquisitions. Yet labor shortage result in delays and likely impact operating results.
Higher Order Rate to Aid Ingersoll Rand (IR) Amid High Costs
Per the Zacks analyst, higher orders across Ingersoll Rand's product portfolio of industrial vacuums, blowers and compressors will lend momentum to it. The company's high costs remain a woe.
Broadridge (BR) Gains From Recurring Revenue Model, Amid High Rivalry
Per the Zacks analyst, a robust business model, backed by higher recurring fee revenues, boosts Broadridge's top line. High competition from other players is an overhang.
AI-Led Customer Relevance Aids CDW Amid Elevated Debt Load
Per the Zacks analyst, CDW's customer-first approach continues to support growth as organizations move from AI experimentation toward production deployments. However, substantial leverage is a woe.
Extensive Fuel Distribution Operations to Benefit Sunoco LP (SUN)
Per the Zacks analyst, Sunoco gains from 9,000+ distribution facilities under long-term agreements. However, high leverage, acquisition risks and market volatility may pressure Sunoco's growth.
Xenon (XENE) Lead Candidate Progressing Well, Dependency a Woe
Per the Zacks Analyst, Xenon's clinical studies on azetukalner for treating epilepsy and other neuro disorders are progressing well. However, the lack of other candidates in its pipeline is a woe.
Skyward Specialty (SKWD) to Grow on Diversified Portfolio, Costs High
Per the Zacks analyst, Skyward Specialty's diversified portfolio will ensure its top-line growth. However, growing expenses are eating into its profit growth.
New Upgrades
MasTec (MTZ) Gains on Record Backlog and Data Center Demand Growth
Per the Zacks analyst, record backlog, favorable infrastructure spending trends and expanding opportunities in data centers and power markets continue to support MasTec's long-term growth prospects.
Digital & Store Initiatives to Aid Dillard's (DDS) Growth Story
Per the Zacks analyst, Dillard's is expected to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing domestic operations.
Credit, Funding, Multiproduct Mix & Partner Strength Aid Pagaya (PGY)
Per the Zacks analyst, secular growth in embedded credit, rising efficiency, diversified funding, growing partner base and multiproduct adoption will aid Pagaya's scalable and profitable expansion.
New Downgrades
Rising Expenses Likely to Hurt Elastic's (ESTC) Profitability
Per the Zacks analyst, aggressive investments to support AI and the go-to-market roadmap is likely to hurt Elastic's profitability in the near term.
Housing Market Softness & Inflationary Pressures Hurt Mohawk (MHK)
Per the Zacks analyst, Mohawk is being hurt by housing market softness, lower consumer confidence and weak demand trends. Also, inflationary pressures and tariff-related uncertainties remain concerns.
Elevated Expenses, Weak Asset Quality Hurt ICICI Bank's (IBN) Profits
Per the Zacks analyst, rising expenses, mainly due to ICICI Bank's initiatives to digitize banking operations, are expected to hamper bottom-line growth. Weak credit quality is another concern.
Radical New Technology Could Hand Investors Huge Gains
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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 >>Microsoft Corporation (MSFT) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
Village Super Market, Inc. (VLGEA): Free Stock Analysis Report
Comstock Holding Companies, Inc. (CHCI): Free Stock Analysis Report
L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
