Monday, May 19, 2025

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 Walmart Inc. (WMT), Palantir Technologies Inc. (PLTR) and Uber Technologies, Inc. (UBER). 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 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 >>> Pre-Markets Lower as the Street Absorbs Downgrade, Warnings

Today's Featured Research Reports

Walmart’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+55.0% vs. +52.9%). The company benefits from the inherent strength of its highly diversified business model. Walmart’s strong omnichannel strategy has boosted traffic at physical stores and digital platforms.

Walmart’s focus on improving delivery services is successful, leading to steady grocery market share gains. Upsides like these, along with growth in newer ventures like advertising and membership, fueled first-quarter fiscal 2026 results, wherein earnings and revenues increased year over year, and e-commerce sales surged.

Despite a strong start to the year, Walmart expects potential hurdles in the coming quarters. The company withheld its fiscal second-quarter earnings outlook, citing uncertainty related to tariffs and a highly fluid economic environment. These tariff costs, even at reduced levels, are expected to push prices higher in the near term.

(You can read the full research report on Walmart here >>>)

Shares of Palantir have outperformed the Zacks Internet - Software industry over the year-to-date period (+82.2% vs. +7.3%). The company’s AI strategy, driven by Foundry, Gotham and AIP platforms, targets government and commercial sectors, enabling real-time insights and operational efficiency.

Notable defense projects, like Open DAGIR, and AIP boot camps for commercial clients boost customer acquisition. With $5.2 billion in cash, no debt and S&P 500 inclusion, Palantir enjoys strong liquidity, growing revenues and increased investor visibility. Meanwhile, PLTR's reluctance to dividend payout is a green flag for dividend-seeking investors.

Intense competition from tech giants and rising costs amidst a rapidly evolving AI landscape and an elevated valuation challenge its appeal. Palantir shares have gained 499.1% in a year and we have a Neutral rating on it in anticipation of a correction.

(You can read the full research report on Palantir here >>>)

Uber’s shares have outperformed the Zacks Internet - Services industry over the past year (+48% vs. -2.3%). The company which dominates the North American ride-sharing market, is likely to increase its focus on suburban markets to drive growth. The Zacks analyst remains confident about its ability to combat the challenges with the help of a strong operating model and successful diversification strategy.

Even though Uber’s primary business is ride-sharing, it has diversified into food delivery and freight over time. On the flip side, fears of gross bookings slowdown and elimination of intermediary services weigh on UBER shares.

A debt load above industry levels and currency-related woes represent further headwinds. Considering all these factors, investors are advised to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. Our thesis is supported by our Neutral recommendation on the shares.

(You can read the full research report on Uber here >>>)

Other noteworthy reports we are featuring today include SAP SE (SAP), Caterpillar Inc. (CAT) and Elevance Health, Inc. (ELV).

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>>>

Story Continues

Today's Must Read

Walmart (WMT) Benefits from Impressive E-Commerce Operations

Modular Sales Tactic Aids Palantir (PLTR), Competition High

Uber Continues to Benefit From Delivery Business Amid High Debt

Featured Reports

Strong Backlog to Support Caterpillar (CAT) Amid High Costs
Per the Zacks analyst, robust backlog levels and improved volumes in the Energy & Transportation segment will support Caterpillar's results amid high labor costs and tariff headwinds.

Elevance's (ELV) Strategic Buyouts & Product Expansion Aid
Per the Zacks analyst, acquisitions, partnerships and product expansions are helping Elevance Health boost its portfolio, leading to steady revenue growth. Yet, rising costs are affecting profits.

Investment on Infrastructure & Clean Assets Aid Dominion (D)
Per the Zacks analyst, Dominion's investment of $50 billion in 2025-2029 period to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Western Midstream (WES) Banks on Stable Fee-Based Revenues
Western Midstream generates stable cash flows as its contracts are backed by minimum volume commitments. However, declining natural gas throughput concerns the Zacks analyst.

Solventum's (SOLV) Restructuring Initiatives to Aid Growth
Per the Zacks analyst, a three-phase restructuring initiative to optimize portfolio and reposition itself for a profitable growth post separation from 3M looks promising.

Ionis' (IONS) Progress With Wholly-Owned Drugs Encouraging
The Zacks Analyst is encouraged by Ionis' progress with its wholly owned pipeline. Its collaboration with big pharma provides it with funds to invest in their development.

Cogent (CCOI) Rides on Healthy Growth in Wavelength Connections
Per the Zacks analyst, steady wavelength customer additions, focus on cost effective operations and network upgradation initiatives will likely boost Cogent's margin.

New Upgrades

SAP's Cloud Momentum Drives Strong Revenue Performance
Per the Zacks analyst, SAP is seeing strong momentum from rising cloud demand, fueled by growing adoption of Rise with SAP and Grow with SAP, boosting Cloud ERP Suite sales and cloud revenue growth.

Increasing Loans & Deposit Balances Support Popular's Growth
Per the Zacks analyst, given the strong loan pipeline and rising deposit balance, Popular is well-positioned for organic growth in the upcoming period.

Digital Expansion Fuels BJ's Wholesale (BJ) Sales Growth
Per the Zacks analyst, BJ's Wholesale Club has been investing in digital capabilities to enhance member engagement. Digitally-enabled comparable sales rose 26% in the fourth quarter of fiscal 2024.

New Downgrades

Higher Expenses, Tough Competition Hurts IMAX's (IMAX) Prospects
Per the Zacks Analyst, IMAX faces significant competition in the out-of-home entertainment industry. Higher expenses also remain a drag on profitability.

Mortgage Rate Risks & High Costs Hurt Lennar's (LEN) Growth
Per the Zacks analyst, Lennar's prospects are hurting from affordability concerns due to high mortgage rates. Also, increased homebuilding costs and uncertainties around tariffs are adding to it.

Macro Uncertainty Hurt Caesars Entertainment (CZR) Prospects
Per the Zacks analyst, Caesars Entertainment is likely to be hurt by macroeconomic uncertainty, localized disruptions, and adverse weather conditions. Also, elevated operating expenses is a headwind.

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Caterpillar Inc. (CAT):Free Stock Analysis Report

Walmart Inc. (WMT):Free Stock Analysis Report

SAP SE (SAP):Free Stock Analysis Report

Uber Technologies, Inc. (UBER):Free Stock Analysis Report

Palantir Technologies Inc. (PLTR):Free Stock Analysis Report

Elevance Health, Inc. (ELV):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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