Wednesday, May 6, 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 Eli Lilly and Co. (LLY), Western Digital Corp. (WDC) and Vertiv Holdings Co (VRT), as well as a micro-cap stock AgEagle Aerial Systems, Inc. (UAVS). 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 >>> ADP +109K: Job Growth on Lower-Paying Work
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+28.2% vs. +21.5%). The company’s Q1 earnings and sales beat estimates. Demand for its popular GLP-1 drugs Mounjaro and Zepbound remains strong, making them the company’s key top-line drivers.
Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth. It is also making rapid pipeline progress in obesity and diabetes with its new oral GLP-1 obesity pill, Foundayo, expected to be a commercial game-changer for Lilly.
Over the past couple of years, Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs and expanding its presence in cardiovascular, oncology, and neuroscience. Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Western Digital have outperformed the Zacks Computer- Storage Devices industry over the past year (+952.5% vs. +568.9%). The company’s fiscal third-quarter results were led by strength across end markets riding on AI-led storage needs and multi-year customer agreements extending through 2028-29. Cloud end market (89% of total) rose 48% to $3B, fueled by strong demand for high-capacity nearline drives and favorable pricing.
Margins were driven by higher-capacity drives and higher UltraSMR uptake that improved customer TCO, while strong operating leverage, lower interest costs and tax efficiency led to double EPS. WD is advancing areal density and enhancing performance with high-bandwidth drives.
Western Digital strengthened balance sheet by selling 5.8 million SanDisk shares, cutting debt by $3.1 billion, leaving $1.6 billion in convertible debt and ending with a $450 million net cash position. WD expects fiscal fourth-quarter revenue of $3.65B, up 40% year-over-year at the midpoint.
(You can read the full research report on Western Digital here >>>)
Vertiv’s shares have outperformed the Zacks Computers - IT Services industry over the past year (+265.6% vs. -26.4%). The company remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles. Q1’26 results showed continued demand and execution, with organic sales growth led by the Americas and higher profitability supported by productivity and price-cost.
Management raised 2026 guidance and is investing in capacity, services, and engineering, while acquisitions extend capabilities in liquid cooling and heat rejection. A strengthened balance sheet following investment-grade ratings and refinancing supports this investment cycle.
Against these positives, regional volatility persists, with EMEA still working through prior order softness and APAC exposed to uneven China demand. Tariffs and supply chain complexity also require ongoing mitigation to protect margins.
(You can read the full research report on Vertiv here >>>)
Shares of AgEagle Aerial Systems have gained +21.3% over the past year against the Zacks Agriculture - Operations industry’s gain of +30.7%. This microcap company with a market capitalization of $61.69 million is positioned to benefit from regulatory approvals, defense adoption, and a broad global distribution network that support growth in commercial and government drone markets.
AgEagle Aerial Systems’ integrated drone-and-sensor ecosystem, expanding multispectral imaging portfolio, and manufacturing expansion strengthen its ability to serve higher-value applications and benefit from increasing demand for compliant, domestically sourced systems. The company also benefits from an established operating history and large installed base, supporting credibility in mission-critical use cases.
However, key risks remain tied to inconsistent revenue growth, ongoing operating losses, and dependence on external financing. Revenue visibility is limited by customer concentration and uneven procurement cycles, while the lack of meaningful recurring revenue keeps results tied to hardware sales.
(You can read the full research report on AgEagle Aerial Systems here >>>)
Other noteworthy reports we are featuring today include Chipotle Mexican Grill, Inc. (CMG), Reddit, Inc. (RDDT) and First Solar, Inc. (FSLR).
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
Lilly (LLY) New Drugs to Drive Sales Growth Amid Rising Competition
Western Digital (WDC) Poised for Growth on AI Storage and HDD Demand
AI-Driven Data Center Demand Aids Vertiv (VRT) Prospects
Featured Reports
Chipotle (CMG) Banks On Strategic Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion, and Zipline pilot bode well. However, the uncertain macro environment and high costs pose concerns.
Strong Solar Demand Aids First Solar (FSLR) Amid Tariff Risks
Per the Zacks analyst, First Solar is benefiting from strong solar demand, though rising tariffs and trade uncertainties across key manufacturing regions may pressure near-term operations and costs.
Murphy USA (MUSA) Benefits from a High-Volume, Low-Cost Model
The Zacks analyst believes that Murphy USA's high-volume, low-cost model, along with its proximity to Walmart, positions the company to maintain above-average fuel sales and strong profitability.
Encompass Health (EHC) Strengthens Growth Through Expansion Efforts
Per the Zacks analyst, Encompass Health's expansion through de novo hospitals will drive patient volumes and profit levels. However, escalating expenses remain a concern for the company.
Healthcare Demand Aids AptarGroup (ATR) Amid Soft Closures Volumes
Per the Zacks analyst, AptarGroup will gain from demand in consumer healthcare. However, weaker volumes and pricing dynamics in Closures remain a woe.
Leisure Demand and Strategic Initiatives Aid Marriott Vacations (VAC)
Per the Zacks analyst, Marriott Vacations benefits from resilient leisure demand and improving rental and financing trends. Also, focus on operational initiatives and asset monetization bode well.
Cost Management Approach, Stable Solvency Boost Omnicell (OMCL)
The Zacks analyst is impressed with Omnicell's expense containment measures that aggravates non-GAAP EBITDA expansion. Also, a strong solvency looks encouraging.
New Upgrades
Reddit (RDDT) Rides on Growing User Engagement, AI Features
Per the Zacks analyst, Reddit is benefiting from strong growth in user engagement driven by AI-powered features.
Silicon Motion (SIMO) Rides on Strength in Multiple Verticals
Per the Zacks analyst, growing demand across embedded storage, automotive, and emerging AI-driven enterprise applications will likely drive Silicon Motion's top line.
Helen of Troy (HELE) Gains on Strength in Leadership Brands
Per the Zacks analyst, Helen of Troy is benefiting from strong performance in its Leadership Brands, with growth in key categories, improved pricing and continued innovation supporting its outlook.
New Downgrades
Grab is Hurt By Labor Issue Stiff Competition and Economic Uncertainty
Per the Zacks Analyst, stiff competition from regional players, economic uncertainty in Southeast Asian markets like Singapore and the Philippines, and labor crisis hurt Grab's prospects.
Cat Loss Exposure, Rising Expenses Hurt CNA Financial (CNA)
Per the Zacks analyst, CNA Financial's exposure to catastrophe loss induces underwriting volatility thus profitability while rising expenses affecting net operating income concerns.
Rising Expenses, Geopolitical Woes to Hurt Moelis and Company (MC)
Per the Zacks analyst, higher costs due to Moelis and Company's hiring spree and investments in technology will hurt profits. Geopolitical and macroeconomic woes add to ambiguity in operating backdrop
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 >>First Solar, Inc. (FSLR) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Western Digital Corporation (WDC) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
AGEAGLE AERIAL SYSTEMS, INC. (UAVS): Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
Reddit Inc. (RDDT) : 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.
