Thursday, July 2, 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 Applied Materials, Inc. (AMAT), Mastercard Inc. (MA) and AbbVie Inc. (ABBV), as well as two micro-cap stocks INNOVATE Corp. (VATE) and BranchOut Food Inc. (BOF). 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 >>> BLS Jobs Report: +57K, Half Expectations
Today's Featured Research Reports
Applied Materials’ shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+236.7% vs. +84.2%). The company is benefiting from AI-driven demand that is shifting wafer fabrication equipment spending toward leading-edge foundry-logic, DRAM and advanced packaging, where it holds leading process positions.
In the second quarter of fiscal 2026, the company delivered record revenue and the highest gross margin in more than two decades, and management sees better multi-quarter visibility as customers share longer-range forecasts. New gate-all-around and packaging products, expanding EPIC collaborations, and a growing services attach rate support value-based pricing and operating leverage.
Offsetting these positives are high China exposure amid changing export rules, the inherently cyclical nature of capital spending, and intense competition across process steps.
(You can read the full research report on Applied Materials here >>>)
Shares of Mastercard have declined -7.7% over the past year against the Zacks Financial Transaction Services industry’s decline of -19.4%. The company’s rebates and incentives are rising with new and renewed deals, and management expects operating expenses to keep growing as it funds safety, security, digital and B2B initiatives. Geopolitical disruption is weighing on cross-border travel. Valuation remains elevated, supporting a Neutral view.
Nevertheless, Mastercard’s scale and brand strength continue to support steady payment network growth, helped by stable consumer and business spending and higher transaction activity.
Cross-border and contactless payments remain key long-term growth drivers, while value-added services continue to diversify revenue through cybersecurity, analytics and digital authentication. Partnerships and targeted acquisitions also extend reach into new payment flows, including stablecoin infrastructure. Share repurchases and dividends remain supported.
(You can read the full research report on Mastercard here >>>)
AbbVie’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+38.6% vs. +35%). The company has successfully navigated Humira's loss of exclusivity (LOE) by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.
AbbVie’s neuroscience portfolio is also rapidly expanding and contributing significantly to top-line growth. AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals throughout 2026. It has been on an acquisition spree in the past couple of years to bolster its early-stage pipeline that should drive long-term growth.
However, the company faces several headwinds like Humira LOE impact, slowing oncology sales and continued macro headwinds for Aesthetics.
(You can read the full research report on AbbVie here >>>)
Shares of INNOVATE have outperformed the Zacks Diversified Operations industry over the past year (+204.9% vs. -7.4%). This microcap company with a market capitalization of $226.32 million shows its investment case anchored by DBMG, whose strong execution, resilient backlog and exposure to AI, data centers, advanced manufacturing and other infrastructure markets provide meaningful revenue visibility and earnings support.
The Life Sciences portfolio adds upside through MediBeacon’s regulatory progress and commercialization efforts, while R2’s expanding international footprint strengthens healthcare growth prospects. However, the bullish thesis is tempered by a highly leveraged balance sheet, refinancing uncertainty and lender-driven strategic processes that could constrain shareholder value.
The company also remains heavily dependent on DBMG, exposing results to project concentration and margin pressure, while weak contributions from Spectrum and limited parent-level liquidity continue to weigh on the overall risk profile.
(You can read the full research report on INNOVATE here >>>)
BranchOut Food’s shares have outperformed the Zacks Food - Miscellaneous industry over the past year (+87% vs. +20.4%). This microcap company with a market capitalization of $77.96 million demonstrates its investment case centered on improving revenue visibility, supported by production readiness and scheduled customer deliveries rather than underlying demand changes. Growth opportunities continue to broaden through expansion into the European private-label market, providing access to major retailers without significant distribution investment.
The retail pipeline is strengthening across warehouse clubs, mass retail and private-label programs, creating multiple avenues for recurring sales and reducing the reliance on any single customer or product. Expanding ingredient supply and potential tolling partnerships should enhance facility utilization, improve product mix and support margins.
At the same time, investments in production capacity and product innovation broaden the company’s addressable market, positioning its proprietary drying technology for additional snack categories and long-term growth.
(You can read the full research report on BranchOut Food here >>>)
Other noteworthy reports we are featuring today include TotalEnergies SE (TTE), Lowe's Companies, Inc. (LOW) and Marathon Petroleum Corp. (MPC).
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
Applied Materials (AMAT) Benefits From AI-Driven WFE Spending
Mastercard's (MA) Strong Payment Trends Aid, Rising Costs Hurt
AbbVie's (ABBV) Skyrizi, Rinvoq Key to Top-Line Growth
Featured Reports
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Per the Zacks analyst TotalEnergies' presence in entire LNG value chain and expansion of clean energy generation through joint venture and acquisition will boost its performance.
Lowe's (LOW) Omnichannel Push, Pro Customer Strategy Fuel Sales Growth
Per the Zacks analyst, Lowe's omnichannel initiatives and Pro customer focus are poised to support sales growth, with online sales rising 15.5% in first-quarter fiscal 2026.
Marathon (MPC) to Gain from Investment in High-Margin Projects
The Zacks analyst believes Marathon Petroleum's investment in higher-margin production projects will enhance profitability, but is worried over its high turnaround expenses.
Strong Leasing Demand Aid Simon Property (SPG), High Debt Hurts
Per the Zacks analyst, Simon Property benefits from strong leasing, high occupancy, rent growth and redevelopment. However, e-commerce substitution and high debt remain risks.
AUM Growth, Restructuring to Aid Ameriprise (AMP) Amid Cost Woes
Per the Zacks analyst, Ameriprise's solid assets under management growth along with its business restructuring efforts will aid revenues. Elevated costs due to technology upgrades will hurt profits.
Digital Initiatives & Menu Innovation Aid Darden (DRI), Macro Woes Ail
Per the Zacks analyst, Darden benefits from brand strength, menu innovation and digital initiatives. However, persistent commodity inflation and uncertain consumer spending remain concerns.
HubSpot (HUBS) Gains from Rising Adoption of AI-Powered CRM Tools
Per the Zacks analyst, rising demand for AI-enabled CRM and sales automation tools is likely to drive HubSpot's top-line growth. Continued innovation in AI capabilities remains a key tailwind.
New Upgrades
Coherent (COHR) Gains From AI Boom & Expansion Beyond Pluggable
Per the Zacks analyst, Coherent capitalizes on AI datacenter build-out, strengthening the Datacenter and Communications. Expanding beyond pluggable into optical switching systems boosts the top line.
Strong Demand & Pricing Actions Aid Rockwell Automation (ROK)
Per the Zacks Analyst, steady demand across end-markers will drive growth for Rockwell Automation's margins. Price increase actions will boost growth.
Ironwood (IRWD) Rides on Robust Sales Performance of Linzess
Per the Zacks analyst, Ironwood's sole marketed drug Linzess is witnessing solid uptake owing to prescription demand growth. Studies on its pipeline candidate, apraglutide is also progressing well.
New Downgrades
Higher Raw Material Costs, Weak Demand Ail Dow (DOW)
Per the Zacks analyst, higher feedstock and energy costs will exert pressure on the company's margins. It also faces headwinds from volume pressure due to soft demand.
Sandisk's (SNDK) Prospects Rides on Strong AI-Driven Memory Demand
Per the Zacks analyst, Sandisk is benefiting from strong AI-led memory demand along with higher pricing and mix shift towards data center SSDs.
Emerging Biotech Weakness, Fierce Rivalry Ails Bio-Techne (TECH)
The Zacks analyst is concerned with Bio-Techne facing continued softness in emerging biotech spending, offsetting the strength from large pharma customers. Competitive headwinds may weigh on growth.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Mastercard Incorporated (MA) : Free Stock Analysis Report
Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report
Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report
INNOVATE Corp. (VATE) : Free Stock Analysis Report
BranchOut Food Inc. (BOF): 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.
