Wednesday, May 20, 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 Johnson & Johnson (JNJ), Oracle Corp. (ORCL) and Netflix, Inc. (NFLX), as well as a micro-cap stock Espey Mfg. & Electronics Corp. (ESP). 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 >>> Big Morning for Retail Earnings: TGT, LOW, TJX & More
Today's Featured Research Reports
Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+54.3% vs. +27.2%). The company’s Innovative Medicine unit is showing a growth trend, despite loss of exclusivity of Stelara, driven by key products like Darzalex, Tremfya and Erleada and new launches like Spravato, Carvykti and Tecvayli.
The MedTech segment is also showing improved operational growth across several key businesses like Cardiovascular and Surgery. J&J expects sales growth in both segments to be higher in 2026. J&J has also rapidly advanced its pipeline in the past year that will help drive growth through the back half of the decade.
The company has “line of sight” to double-digit top-line growth by the end of the decade. However, the Stelara patent cliff, the impact of Part D redesign and MedTech China issues are key headwinds. The uncertainty around unresolved legal issues lingers.
(You can read the full research report on Johnson & Johnson here >>>)
Shares of Oracle have outperformed the Zacks Computer - Software industry over the past year (+16.6% vs. -9.8%). The company’s cloud infrastructure business demonstrates accelerating revenue growth, supported by strategic partnerships and competitive pricing that attract enterprise workload migrations. AI-optimized database capabilities provide technological differentiation, while robust free cash flow generation enables sustained infrastructure investments.
The integrated solutions strategy strengthens customer retention and drives cross-selling opportunities. However, competition from hyperscalers remains intense, potentially pressuring margins. The ongoing transition from license revenue to subscription models creates near-term earnings volatility.
Fiscal 2026 guidance indicates continued cloud acceleration, but execution risks around data center capacity expansion warrant monitoring. Shares have underperformed the industry in the past six-month period.
(You can read the full research report on Oracle here >>>)
Netflix’s shares have underperformed the Zacks Broadcast Radio and Television industry over the past year (-25.2% vs. -11.5%). The company faces intense competition across streaming and short-form platforms, and growth is expected to moderate versus recent years. Foreign exchange exposure and sizable content obligations, alongside a still-elevated debt balance, limit flexibility and raise execution risk for investors.
Nevertheless, Netflix is expanding beyond subscription streaming into a broader entertainment platform, with advertising, live events, games and video podcasts supporting monetization.
NFLX has set an ambitious target to double its revenues by 2030 and continues to target about $3 billion of advertising revenue in 2026, helped by a larger advertiser base and easier programmatic buying. Content breadth and a global footprint remain key differentiators, while operating margin discipline and rising free cash flow support capital returns over time.
(You can read the full research report on Netflix here >>>)
Shares of Espey Mfg. & Electronics have outperformed the Zacks Electronics - Military industry over the past year (+75.8% vs. -35.1%). This microcap company with a market capitalization of $180.59 million is supported by a $137 million backlog that provides multi-year revenue visibility and underpins utilization stability across its vertically integrated operations. Despite lower FY26 sales, margins expanded sharply, driving ~50% net income growth as higher-margin defense programs entered production.
Espey Mfg. & Electronics is positioned to benefit from rising defense modernization spending tied to radar, naval systems, electronic warfare, and UAV applications, while Navy-funded facility upgrades may enhance qualification capabilities and future award competitiveness. A strong balance sheet and sizable dividends further support shareholder returns.
Risks include sharply weaker new-order activity, customer concentration, weaker operating cash flow due to working-capital build, and dependence on U.S. defense budgets. Valuation multiples sit above historical medians.
(You can read the full research report on Espey Mfg. & Electronics here >>>)
Other noteworthy reports we are featuring today include Axon Enterprise, Inc. (AXON), Ameren Corp. (AEE) and Credo Technology Group Holding Ltd. (CRDO).
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
J and J's (JNJ) Innovative Medicine Strong, MedTech Improves
Oracle Gains From Cloud Strength Amid Competitive Risks
Robust Content Aids Netflix (NFLX) Amid Stiff Competition
Featured Reports
Renewable Energy Focus and Investments Aid Ameren Corp (AEE)
According to the Zacks analyst, Ameren aims to invest $31.8 billion through 2030 to strengthen its existing operations. It plans to add 2,700 MW of renewables by 2030, reaching 4,200 MW by 2035.
Expected Rise in Y/Y Deliveries to Aid Rivian (RIVN) Amid High Opex
Per the Zacks analyst, the expected rise in year-over-year deliveries enhances Rivian's prospects. However, high operating expenses remain a concern.
High renewal ratio, Price Rise Aid American Financial (AFG)
Per the Zacks analyst, American Financial is set to grow on solid property and casualty business, a high renewal ratio, and favorable combined ratio. Yet cat exposure inducing volatility concerns.
Organic Growth Aid SouthState's (SSB) Financials, High Cost Ail
Per the Zacks analyst, low-cost deposits, alongside strong loan pipelines will likely keep driving the SouthState's top line. Yet, rising expenses remain a concern.
Integrated Business Model Aids Owens Corning (OC), High Costs Hurt
Per the Zacks analyst, Owens Corning is gaining from an integrated building-products model and operational efficiency. However, weaker residential volumes and higher input costs limit prospects.
Strong Pricing Strategies Aid ManpowerGroup (MAN), Amid High Rivalry
Per the Zacks analyst, strong pricing and cost control initiatives are driving ManpowerGroup's topline. High competition from other players is an overhang.
Solid Specialty Surgery Arm Aids Integra (IART) Amid Weak Solvency
The Zacks analyst is impressed with the healthy demand for Integra's industry-leading products within the Specialty Surgery. Yet, a balance sheet with a high debt burden is worrisome.
New Upgrades
Solid Momentum in Connected Devices Segment to Benefit Axon
Per the Zacks analyst, Axon's Connected Devices segment is driven by robust demand for TASER devices and higher cartridge revenue. Also, accretive acquisitions bode well for the company.
AEC Momentum and Hyperscaler Wins Strengthen Credo Technology (CRDO)
Per the Zacks analyst, strong AEC adoption, hyperscaler traction and an expanding IC portfolio, including retimers and optical DSPs are driving Credo. Synergies from acquisitions bode well.
Columbia Sportswear (COLM) Gains From ACCELERATE Strategy
Per the Zacks analyst, Columbia Sportswear is well-positioned for growth, backed by its ACCELERATE strategy. This strategy is designed to elevate the brand and attract younger, more active consumers.
New Downgrades
Amarin's Restructuring and Expansion Aid Growth, Dependency a Woe
Per the Zacks Analyst, Amarin is benefiting from cost-cutting measures and Vazkepa's global expansion through partnerships. However, the lack of other candidates in its pipeline remains a concern.
Magnolia (MGY) Gains from Unhedged Strategy in Strong Oil Market
The Zacks analyst believes that Magnolia Oil and Gas can benefit from stronger oil prices due to its unhedged strategy, but its reliance on Giddings adds a layer of uncertainty.
Akamai (AKAM) Plagued by Weakness in the Delivery Segment
Per the Zacks analyst, competitive pricing pressure and slower growth in traditional content delivery services will likely impact Akamai's top line. Customer concentration remains a concern.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
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 >>Ameren Corporation (AEE) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
Espey Mfg. & Electronics Corp. (ESP) : Free Stock Analysis Report
Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
Credo Technology Group Holding Ltd. (CRDO) : 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.
