Thursday, July 30, 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), Sandisk Corp. (SNDK) and Eaton Corp. plc (ETN), as well as a micro-cap stock Flanigan's Enterprises, Inc. (BDL). 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
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You can read today's AWS here >>> PCE Data for June: +3.3% on Core, Consumption & Pricing Higher
Today's Featured Research Reports
Applied Materials’ shares have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+70.3% vs. +14.3%). 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 Sandisk have outperformed the Zacks Computer- Storage Devices industry over the year-to-date period (+328% vs. +161.4%). The company is benefiting from AI-led demand that is lifting enterprise SSD adoption and supporting pricing across NAND end markets. Datacenter revenue is scaling as the company expands its enterprise SSD portfolio and prepares to add QLC products, which should raise mix quality over time.
Edge demand is shifting toward premium devices, supporting higher-value configurations. Multiyear supply partnerships backed by financial guarantees improve demand visibility and support a less cyclical earnings profile. Recent margin expansion and rising free cash flow have moved Sandisk to a net cash position and enabled a share repurchase authorization.
However, key risks include supply constraints, pricing volatility, and execution on product ramps and contract commitments, but mix and the evolving commercial model keep the risk-reward favorable.
(You can read the full research report on Sandisk here >>>)
Eaton’s shares have outperformed the Zacks Manufacturing - Electronics industry over the year-to-date period (+14.3% vs. +13.3%). The company is benefiting from strong electrification-driven demand, reflected in rising orders and an expanding backlog. Eaton has raised its 2026 organic growth outlook while continuing to invest in capacity expansion and innovation initiatives.
The company is also pursuing portfolio optimization through strategic acquisitions that strengthen its exposure to data center cooling alongside the planned spin-off of its Mobility business by the end of the first quarter of 2027. The Zacks analyst model expects total revenues to grow steadily between 2026 and 2028.
Yet, near-term margin pressure related to capacity expansion and input costs, elevated leverage following acquisitions, and ongoing risks tied to global operations, cybersecurity and supply-chain disruptions remain key concerns.
(You can read the full research report on Eaton here >>>)
Shares of Flanigan's have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+30.5% vs. +2.9%). This microcap company with a market capitalization of $70.61 million has its long-term investment case supported by its diversified business model, resilient customer demand and ability to improve profitability through pricing, operational execution and disciplined cost management.
Flanigan's combination of restaurant operations, retail liquor stores and franchise revenue streams provides multiple growth avenues while reducing reliance on a single segment. A strong liquidity position and internally generated cash flow offer flexibility to invest in operations and support shareholder returns.
However, investors should weigh margin pressures, higher fixed costs, commodity exposure, softer beverage trends and digital capability gaps. The current valuation suggests that the market recognizes these execution challenges, while leaving room for upside if BDL sustains growth, stabilizes margins and delivers continued earnings improvement.
(You can read the full research report on Flanigan's here >>>)
Other noteworthy reports we are featuring today include Norfolk Southern Corp. (NSC), Chipotle Mexican Grill, Inc. (CMG) and Centene Corp. (CNC).
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
Sandisk's (SNDK) Prospects Rides on Strong AI-Driven Memory Demand
New Product Development, Broad Market Reach Aid Eaton's (ETN) Growth
Featured Reports
Dividends & Buyback Aid Norfolk Southern (NSC), Fuel Costs Ail
The Zacks analyst likes the shareholder-friendly measures adopted by Norfolk Southern. However, escalating fuel prices are concerning as they are likely to keep the bottom line under pressure.
Chipotle (CMG) Banks on Strategic Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion and HEEP rollout bode well. However, the uncertain macro environment and high costs pose concerns.
Quest Diagnostics (DGX) Banks on Strategic Tie-ups Amid High Debt Leve
Per the Zacks analyst, Quest Diagnostics is gaining through accretive outreach purchases as well as other independent labs. Yet, a balance sheet with a high debt burden is worrisome.
J.M. Smucker's (SJM) Uncrustables likely to Sustain Long-Term Growth
Per the Zacks analyst, Uncrustables' expanding distribution, product innovation and broader usage occasions likely to support sustained growth, strengthening J.M. Smucker's long-term sales momentum.
Viasat (VSAT) Rides on Healthy Demand, Portfolio Strength
Per the Zacks analyst, higher demand for satellite broadband and communication services will likely drive Viasat's top line. Its effort to venture into the automotive market is a positive.
NOV Inc. (NOV) to Gain from Future Offshore Projects
The Zacks analyst notes that NOV's leadership in offshore projects with strong bookings for subsea flexible pipe, marine systems and offshore production equipment creates a favorable outlook.
CashAI Gains & Funding Shift Support DAVE's Sustainable Growth
Per the Zacks analyst, Dave's CashAI-led underwriting, rising monetization, funding catalysts and share buybacks support durable growth and stronger per-share value.
New Upgrades
Pricing Discipline and Medicaid Rate Actions Aid Centene (CNC)
Per the Zacks analyst, disciplined pricing and favorable Medicaid rate actions are improving margins and supporting Centene's long-term earnings outlook.
Portfolio Diversification, Robust Liquidity Supports Annaly (NLY)
Per the Zacks Analyst, exposure to high-quality MBS, focus on residential credit business and MSR platform support Annaly's growth momentum. Also, solid liquidity aid capital distribution.
Strength in the SMB-led Lending, Rising Revenue Aid Enova (ENVA)
Per the Zacks analyst, strength in the SMB-led lending and rising revenue base, given robust origination and the pending buyout of Grasshopper Bancorp, will continue to support Enova's financials.
New Downgrades
Keros' Long-Term Outlook Clouded by Weak Earnings and Pipeline Risks
Per the Zacks Analyst, Keros faces an uncertain outlook given its lack of a commercial revenue base, execution and funding risks and reliance on a single lead asset. DMD competition adds risk.
Rise in Accounts Receivables, Weather Fluctuations Ail CWCO
Per the Zacks analyst, CWCO's performance can be adversely impacted by delays in the collection of accounts receivables, and weather fluctuations during the second half of the year reducing demand.
Towable RV & Marine Segment Weakness, High Cost Ail Winnebago (WGO)
Per the Zacks analyst, softness across the Towable RV and Marine segments is likely to hurt Winnebago's top-line growth. Higher material and manufacturing costs also remain a concern.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Norfolk Southern Corporation (NSC): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
Sandisk Corporation (SNDK): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
Rocky Mountain Chocolate Factory, Inc. (RMCF): Free Stock Analysis Report
Flanigan's Enterprises, Inc. (BDL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).