Wednesday, June 3, 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 Broadcom Inc. (AVGO), Cisco Systems, Inc. (CSCO) and Alibaba Group Holding Ltd. (BABA), as well as two micro-cap stocks IDT Corp. (IDT) and Hamilton Beach Brands Holding Co. (HBB). 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 >>> Jobs Week Helps Boost Market Sentiment
Today's Featured Research Reports
Shares of Broadcom have gained +86% over the past year against the Zacks Electronics - Semiconductors industry’s gain of +123.2%. The company is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. Strong demand for its networking products and custom AI accelerators (XPUs) has been noteworthy.
Broadcom’s AI segment benefits from custom accelerators and advanced networking technology that support large-scale AI deployments with improved performance and efficiency. Broadcom expects second-quarter fiscal 2026 AI revenues to surge 140% year over year to $10.7 billion.
AVGO’s networking portfolio is gaining from the strong demand for Tomahawk 6 products. The acquisition of VMware has benefited Infrastructure software solutions. A rich partner base is a key catalyst. However, gross margin in the fiscal second quarter is expected to be flat sequentially. High debt level is a headwind.
(You can read the full research report on Broadcom here >>>)
Cisco’s shares have outperformed the Zacks Computer - Networking industry over the past year (+103.3% vs. +102.3%). The company is seeing broad-based demand, with third-quarter fiscal 2026 revenue of $15.8 billion up 12% year over year and non-GAAP earnings of $1.06 per share, up 10% year over year. Total product orders rose 35% and networking product orders grew more than 50%, helped by a campus refresh and data center switching orders up more than 40%.
AI infrastructure is a key driver, with $5.3 billion of hyperscaler orders taken year to date; management raised expected fiscal 2026 AI orders to $9 billion and AI revenue to $4 billion. Non-GAAP gross margin was 66.0% and operating margin was 34.2%.
For fiscal 2026, guidance calls for $62.8-$63 billion revenue and $4.27-$4.29 non-GAAP earnings, assuming current tariffs and exemptions persist. However, declining services revenue, flat security product revenue, and stiff competition are major concerns.
(You can read the full research report on Cisco here >>>)
Shares of Alibaba have gained +11.4% over the past year against the Zacks Internet - Commerce industry’s gain of +11.8%. The company benefits from a dominant digital commerce ecosystem, supported by strong network effects, extensive merchant relationships and sophisticated logistics capabilities.
Alibaba’s diversified business model spans e-commerce, cloud computing, international commerce and AI-driven innovation, creating multiple growth avenues. Expanding global operations, growing cloud adoption, advances in AI technologies and a solid financial position strengthen its long-term competitive advantages and provide flexibility for strategic investments and shareholder returns.
Yet, profitability remains under pressure from investments in quick commerce, technology innovation and customer experience initiatives. Rising competition from social commerce and e-commerce rivals is challenging market share and monetization.
(You can read the full research report on Alibaba here >>>)
IDT’s shares have outperformed the Zacks Diversified Communication Services industry over the past six months (+10.5% vs. +2.4%). This microcap company with a market capitalization of $1.39 billion sees its investment thesis increasingly supported by a transition toward higher-margin, recurring-revenue businesses that are enhancing earnings quality and growth. NRS is deepening merchant engagement through payments and software offerings, while BOSS Money is benefiting from the shift toward digital remittances.
Net2phone is expanding through AI-enabled communications and vertical-specific solutions, creating opportunities for greater customer retention. These growth platforms contribute a larger share of profits and reduce reliance on legacy communications.
Key risks include working-capital intensity in remittances, pressure on transaction economics, AI execution risks and continued erosion in legacy communications. Despite these challenges, the valuation suggests investors may not fully recognize the long-term earnings potential of IDT’s transformation.
(You can read the full research report on IDT here >>>)
Shares of Hamilton Beach have outperformed the Zacks Household Appliances industry over the past six months (+27.3% vs. -44.6%). This microcap company with a market capitalization of $264.41 million has its outlook supported by improving profitability in Health, driven by scaling software and pharmacy partnerships, alongside product launches.
Premium appliances are gaining broader retail distribution and shelf space, supported by ongoing brand investment and market-share opportunities. Commercial operations continue to diversify revenues through expanding foodservice, hospitality and international channels.
Profitability benefits from pricing discipline, favorable mix and supply-chain initiatives that help offset cost pressures. Growth should be supported by product innovation, expanded retail placements and increased digital marketing. A strong balance sheet and disciplined capital allocation provide flexibility to invest in growth while continuing shareholder returns.
(You can read the full research report on Hamilton Beach here >>>)
Other noteworthy reports we are featuring today include Imperial Oil Ltd. (IMO), Barclays PLC (BCS) and Alnylam Pharmaceuticals, Inc. (ALNY).
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
Strong Demand for Networking Products Aids Broadcom (AVGO)
Cisco (CSCO) Rides on Strong Networking Solution Demand
Alibaba Benefits From Cloud, AI Strength Despite Rising Rivalry
Featured Reports
Restructuring Efforts Aid Barclays (BCS) Amid Geopolitical Uncertainty
Per the Zacks analyst, Barclays' business simplifying efforts will aid efficiency. Yet, a tough macroeconomic and geopolitical backdrop will drive credit impairment charges higher, hurting profits.
Amvuttra & Givlaari Sales Boost Alnylam (ALNY), Setbacks A Woe
Per the Zacks Analyst, Amvuttra and Givlaari sales are expected to continue to boost ALNY's revenues. However, potential regulatory/pipeline setbacks and heavy reliance on partnerships remain a woe.
Grab Rides on Strength in its On-Demand GMV Amid Labor Issues
Per the Zacks Analyst, Grab is benefiting from strong growth in its On-Demand Gross Merchandise Value ("GMV"). However, stiff competition from regional players and labor crisis hurt Grab's prospects.
MGM Resorts (MGM) Banks on Strategic Efforts, High Costs Ail
Per the Zacks analyst, MGM Resorts' focus on digital initiatives, property enhancements and its strategic relationship with Marriott bodes well. However, high costs and weaker Canadian business ail.
Hormel Foods (HRL) to Benefit From Foodservice and Global Growth
Per the Zacks analyst, Hormel Foods is likely to benefit from strong Foodservice momentum and international demand, though rising freight, logistics and commodity costs may put pressure on margins.
BlackBerry (BB) Buoyed by QNX & Secure Comms Strength, Healthy Margins
Per the Zacks analyst, continued design wins across the QNX and Secure Communications divisions cushion BlackBerry's top-line. Strong revenue and cost control drive higher profit margins.
Canadian Solar (CSIQ) Benefits From Global Reach Despite Tariffs
Per the Zacks analyst, Canadian Solar is likely to benefit from its expanding global presence, though rising U.S. import tariffs continue to create uncertainty for international operations.
New Upgrades
Imperial Oil (IMO) to Gain from Multiple Growth Projects
The Zacks analyst believes that Imperial Oil's multiple organic growth projects could materially increase production over the next decade ensuring strong revenue visibility.
Arrow Electronics (ARW) Rides on Solid Product Portfolio
Per the Zacks Analyst, Arrow Electronics' expanding product portfolio across the infrastructure software, next-generation hardware and hybrid cloud architectures spaces, is a key driver.
Strength in Vista & National Pen Units Drive Cimpress (CMPR)
Per the Zacks analyst, strength in Cimpress' Vista and National Pen units, aided by robust demand for apparel, signage, packaging, labels and promotional products will continue to lend momentum to it.
New Downgrades
Catastrophe Loss, Rising Expenses Ail CNA Financial (CNA)
Per the Zacks analyst, higher losses from catastrophes affect CNA Financial's underwriting results. Also rising expenses due to higher non-insurance warranty expense weigh on margin expansion.
QuidelOrtho (QDEL) Faces Solvency Issues, Competition & Policy Risk
Per the Zacks Analyst, QuidelOrtho faces stiff competition, weak solvency, and reimbursement uncertainties, though strong product portfolio and cost-saving initiatives offer cautious optimism.
Doximity's (DOCS) Slow Retention and High AI Spend Cloud FY26 Outlook
As per the Zacks analyst, retention has cooled, FY26 growth is set to slow, and heavier AI infrastructure investment is compressing near-term margins despite rising engagement and cash flow.
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Alnylam Pharmaceuticals, Inc. (ALNY): Free Stock Analysis Report
Barclays PLC (BCS): Free Stock Analysis Report
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
Imperial Oil Limited (IMO): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
IDT Corporation (IDT): Free Stock Analysis Report
Hamilton Beach Brands Holding Company (HBB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).