Tuesday, May 26, 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 RTX Corp. (RTX), Wells Fargo & Co. (WFC) and Amgen Inc. (AMGN), as well as two micro-cap stocks Daily Journal Corp. (DJCO) and Tandy Leather Factory, Inc. (TLF). 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 >>> Pre-Markets to Open at Record Highs: Retail Earnings, Case-Shiller Report
Today's Featured Research Reports
RTX’s shares have outperformed the Zacks Aerospace - Defense industry over the past year (+33.7% vs. +3.5%). The company continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Steadily improving global commercial air traffic boosts the company's sales.
Strong volumes and a favorable mix across large commercial engines and Pratt Canada operations are expected to support the company’s growth momentum in the commercial aerospace market. This resulted in RTX registering a backlog of $271 billion as of March 31, 2026.
Yet, the uncertainties created by the recent imposition of U.S. government-issued import tariffs pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX.
(You can read the full research report on RTX here >>>)
Shares of Wells Fargo have gained +6.4% over the past year against the Zacks Financial - Investment Bank industry’s gain of +26.3%. The company’s net interest income (NII) recovery may remain slow, despite the expected Fed rate cut in 2026, which is pressuring revenue growth. Mortgage banking income remains weak amid ongoing volatility in mortgage rates. The lower return on equity indicates less efficiency in using its shareholders' funds.
However, the company’s earnings surpassed estimates in three of the trailing four quarters. The removal of the asset cap and termination of 2018 enforcement action allow growth in deposits, loans, and fee-based business.
Wells Fargo also gains room to scale fee-based businesses while enhancing its revenue mix. A strong capital and liquidity base supports shareholder returns. In addition, the talent and technology investments and branch optimization are expected to support long-term growth.
(You can read the full research report on Wells Fargo here >>>)
Amgen’s shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+24.8% vs. +22.3%). The company beat first-quarter estimates for both earnings and sales. Key medicines like Evenity, Repatha and Uplizna, as well as newer medicines like Imdelltra, Tavneos and Tezspire, are driving sales, more than offsetting declining revenues from oncology biosimilars and mature products like Enbrel.
New biosimilar launches are also contributing to top-line growth. Furthermore, Amgen has several key pipeline assets, with a primary focus on the obesity candidate, MariTide.
However, price declines and increased competition are hurting sales of some products. Sales of best-selling drugs, Prolia and Xgeva, will decline sharply in 2026 due to biosimilar launches. Recent pipeline setbacks and the upcoming LOE cliff are concerns.
(You can read the full research report on Amgen here >>>)
Shares of Daily Journal have gained +12.2% over the past year against the Zacks Publishing - Newspapers industry’s gain of +24.9%. This microcap company with a market capitalization of $652.05 million is increasingly evolving into a higher-quality software-driven business, with Journal Technologies contributing approximately 79% of total revenue during the first half of FY26.
Daily Journal’s expanding presence across 37 states and several international markets reflects growing adoption of its government-focused software solutions and provides a more diversified operating base. A significant portion of revenues is recurring or usage-based, enhancing visibility. Daily Journal also maintains a highly liquid and asset-rich balance sheet, with positive operating cash flow and reduced margin debt.
However, legacy publishing operations continue to face structural margin pressure from rising costs and weak growth. Elevated governance, remediation, and legal expenses are limiting operating leverage. Shares trade at discounts to peers across EV/Sales and P/B metrics.
(You can read the full research report on Daily Journal here >>>)
Tandy Leather Factory’s shares have outperformed the Zacks Retail - Apparel and Shoes industry over the past year (+4.7% vs. +1.2%). This microcap company with a market capitalization of $19.22 million has seen its Q1 2026 sales rise 3.2% to $19.7 million and gross margin expanded 470 bps to 61% due to pricing optimization, favorable product mix and stronger community/class engagement.
Operating income increased 39%, reflecting better leverage despite higher labor and occupancy costs. The balance sheet remains strong with $10.1 million cash, no debt outstanding and positive operating cash flow, supporting strategic flexibility and shareholder returns, including a recent special dividend and remaining $5 million buyback authorization.
However, profitability is still thin, leaving a limited cushion against tariff-related sourcing inflation, rising lease obligations and escalating operating expenses that are growing faster than revenue. The business also remains highly dependent on U.S. discretionary spending and vulnerable to consumer demand softness. Shares trade at 0.41X book value.
(You can read the full research report on Tandy Leather Factory here >>>)
Other noteworthy reports we are featuring today include Booking Holdings Inc. (BKNG), Comcast Corp. (CMCSA) and Comfort Systems USA, Inc. (FIX).
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
Solid Defense Order & Rising Commercial Air Traffic Aid RTX Corp (RTX)
Strong Balance Sheet Aids Wells Fargo (WFC) Amid Weak Mortgage Income
Amgen (AMGN) Key & New Drugs Driving Sales Amid LOE Concerns
Featured Reports
Booking Holdings' Global Reach Supports Growth Amid Travel Headwinds
Per the Zacks analyst, Booking Holdings benefits from its global travel platform, Connected Trip strategy and strong cash flows. However, travel demand swings and competition remain risks.
Comcast's Broadband Strength Supports Growth Amid Margin Pressures
Per the Zacks analyst, Comcast benefits from broadband network upgrades, wireless growth and NBCU sports content. However, cord-cutting, fiber competition and margin pressure remain concerns.
Viking (VIK) Benefits From Fleet Expansion Efforts Amid High Debt
The Zacks Analyst is impressed with the fact that Viking focuses on fleet expansion to drive growth. However, escalated debt load and high costs represent major concerns for the bottom line.
Revvity's (RVTY) Growth Outlook Faces Chinese Pressure and Margin Risk
As per the Zacks analyst, Revvity's growth outlook is supported by diagnostics and software momentum, but Chinese pressure and margin risks may weigh on near-term performance.
Centrus Energy (LEU) Expands Enrichment Capacity Amid Cost Pressures
Per the Zacks analyst Centrus Energy will gain from efforts to scale up uranium enrichment capacity, backlog and federal funding opportunities. However higher spending may impact near-term results.
10x Genomics' (TXG) Innovation Strength Aids Growth Amid Funding Woes
Per the Zacks Analyst, 10x Genomics benefits from strong platform innovation and growing single-cell and spatial biology markets, though funding uncertainty and weak instrument demand weigh.
Strength in Midstream Sector to Benefit DNOW, High Cost Ails
Per the Zacks analyst, DNOW is poised to gain from customer investments in natural gas infrastructure tied to LNG export activity within the Midstream sector. However, high costs remain a woe for it.
New Upgrades
Robust Public Infrastructure Demand Aids Comfort Systems (FIX)
Per the Zacks analyst, Comfort Systems is gaining from strong technology infrastructure demand, particularly for data centers, alongside strong execution capabilities and modular expansion efforts.
Silicon Motion (SIMO) Rides on Strength in AI Infrastructure Market
Per the Zacks analyst, growing demand for Silicon Motion's MonTitan controllers and boot drive solutions in the enterprise and AI infrastructure markets will likely drive the top line.
PVH Corp.'s (PVH) Brand Strength & Execution Supports Growth Momentum
Per the Zacks analyst, PVH Corp.'s strong brand momentum, disciplined execution and growing consumer engagement are poised to support long-term growth prospects.
New Downgrades
California Resources (CRC) Battles Cost Pressures
The Zacks analyst believes that California Resources faces risks from volatile oil prices, high operating costs and regulatory delays, which could pressure margins and cash flow.
V.F. Corp's (VFC) Vans Brand Struggles, Reinvent Program on Track
Per the Zacks analyst, V.F. Corp. witnesses softness across Vans, marked by weak sales and fading relevance in key markets. However, it is progressing well on its Reinvent transformation program.
Prudential (PRU) Hurt by Forex Fluctuations, Geopolitical Instability
Per the Zacks analyst, Prudential is exposed to foreign currency exchange risk that adversely affects profitability. Geopolitical tensions restrict commercial activity, impacting business interests.
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Wells Fargo & Company (WFC): Free Stock Analysis Report
Comcast Corporation (CMCSA): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Tandy Leather Factory, Inc. (TLF): Free Stock Analysis Report
Daily Journal Corp. (S.C.) (DJCO): Free Stock Analysis Report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).