Tuesday, July 21, 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 Eli Lilly and Co. (LLY), Costco Wholesale Corp. (COST) and Morgan Stanley (MS), as well as a micro-cap stock Kewaunee Scientific Corp. (KEQU). 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 >>> Q2 Earnings Pick Up Steam: GM, MMM, DHI & More
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+48.8% vs. +33%). Demand for the company’s popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers. Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth.
Lilly is also making rapid progress in its pipeline with its new oral GLP-1 obesity pill, Foundayo, expected to be a commercial game-changer for the company. Lilly has aggressively expanded through M&A in 2026 across oncology, neuroscience, cardiovascular and other areas to diversify growth beyond GLP-1 therapies.
Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds. Estimates have increased slightly ahead of Q2 results. Lilly has a positive record of earnings surprises in recent quarters.
(You can read the full research report on Eli Lilly here >>>)
Shares of Costco have gained +8.8% over the year-to-date period against the Zacks Retail - Discount Stores industry’s gain of +11.3%. The company remains well-positioned due to its differentiated membership-based warehouse model, strong value proposition and loyal customer base. It continues to benefit from recurring membership income, high renewal rates and growing engagement from higher-value members.
Costco's focus on offering quality merchandise at competitive prices supports steady traffic and reinforces customer loyalty. Costco is also enhancing its digital ecosystem through e-commerce, personalization tools, AI-driven product discovery and convenient fulfillment options, helping improve the member experience.
Also, the company is expanding its warehouse footprint and investing in productivity-enhancing initiatives to support long-term growth. Backed by a strong balance sheet, Costco is well-positioned to strengthen its market leadership and drive sustainable growth over time.
(You can read the full research report on Costco here >>>)
Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+54.3% vs. +25.2%). The company’s outperformance suggests meaningful execution progress. Its second-quarter 2026 results reflected robust trading and investment banking (IB). It benefits from a durable wealth and asset management franchise that supports steadier fee income and deep client relationships, with strategic deals and alliances adding to long-term growth optionality.
The IB business will improve as pipelines rebuild, M&A demand holds up and relatively lower rates aid client activity. A strong capital position allows continued shareholder returns.
Yet, expense pressure from growth initiatives, technology spend and platform investments may limit operating leverage. Trading has been supportive, but the business is volatile and harder to grow from current levels. Its premium valuation limits its upside potential.
(You can read the full research report on Morgan Stanley here >>>)
Shares of Kewaunee Scientific have underperformed the Zacks Instruments - Scientific industry over the year-to-date period (-3.1% vs. +19%). This microcap company with a market capitalization of $104.01 million has its profitability exposed to project timing, construction activity, input-cost inflation and tariff pressures. Elevated corporate expenses and integration investments continue to weigh on earnings conversion.
Although the balance sheet has improved through debt reduction, lower liquidity and ongoing capital commitments limit financial flexibility. Share dilution from equity compensation may also restrain per-share earnings growth.
Nevertheless, Kewaunee’s investment case is supported by a broader laboratory products portfolio following the Nu Aire acquisition, expanding its offerings, distribution reach and reducing reliance on laboratory furniture. A healthy backlog provides near-term revenue visibility, while international operations diversify earnings through turnkey laboratory design, engineering and project management capabilities that strengthen customer relationships.
(You can read the full research report on Kewaunee Scientific here >>>)
Other noteworthy reports we are featuring today include NVIDIA Corp. (NVDA), BlackRock, Inc. (BLK) and Prologis, Inc. (PLD).
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
Lilly (LLY) New Drugs to Drive Sales Growth Amid Rising Competition
Decent Comparable Sales Run to Fuel Costco's (COST) Top Line
Capital Markets & Wealth Strength Aids Morgan Stanley (MS), Costs Ail
Featured Reports
Strategic Joint Ventures, Scale to Aid Prologis Inc. (PLD) Amid Debt
Per the Zacks analyst, Prologis is set to gain from its unmatched scale in global logistics real estate and strategic joint ventures enhancing its ability to fund growth. Yet, elevated debt burden ail
Aerospace Aids Howmet (HWM) Amid Transportation Weakness
Per the Zacks analyst, Howmet is benefiting from strength in commercial and defense aerospace markets with robust demand for its products. However, softness in transportation market remains a concern.
CSX (CSX) Benefits From Dividends & Buyback Amid High Debt
The Zacks analyst likes the shareholder-friendly measures adopted by CSX. However, high debt does not bode well for its bottom line.
Targa (TRGP) to Benefit from strong global demand for U.S. LPG
The Zacks analyst notes that strong global demand for U.S. liquefied petroleum gas exports supports marketing optimization at Targa's export facilities, but elevated debt remains a concern.
Market Demand & Digital Focus Aid Fastenal (FAST) Amid Inflation
Per the Zacks analyst, Fastenal is gaining from an improving industrial backdrop, digital integration and disciplined capital returns. However, macro risks and inflation restrict prospects.
Increasing Transaction Fees Aids Cboe Global Market (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on increasing transaction fees driven by trading volume growth given strength in its proprietary products. However, rising expenses concerns.
New Program Wins & Collaboration With Volkswagen Aid Mobileye (MBLY)
Per the Zacks analyst, SuperVision and Surround ADAS design wins with Mahindra bolster the prospects of Mobileye. Collaboration with the Volkswagen Group also sparks optimism.
New Upgrades
NVIDIA's (NVDA) Data Center Biz Gains From Growing Adoption of GPUs
Per the Zacks analyst, the growing demand for GenAI and LLMs using GPUs based on Hopper and Blackwell architectures is aiding NVIDIA's data center revenues.
Acquisitions, Robust AUM Growth to Support BlackRock (BLK) Top Line
Per the Zacks analyst, BlackRock's inorganic growth efforts to boost presence in alternatives and private equity assets along with its robust assets under management balance will likely aid revenues.
Nuclear PPAs, Hedging & Load Growth Enhance Vistra's Long-term Outlook
Per the Zacks analyst, VST strengthens earnings visibility with extensive hedging, long-term nuclear PPAs, rising power demand, gas expansion and disciplined capital returns.
New Downgrades
Axsome's (AXSM) High Dependence on Auvelity for Sales is a Concern
Per the Zacks analyst, Axsome's heavy reliance on Auvelity for revenues is concerning. Recent pipeline setbacks and stiff competition in the target market also remain overhangs.
Calix (CALX) Faces Pressure From Weak Broadband Spending Trends
Per the Zacks analyst, weak broadband service provider spending and delayed network investments are likely to weigh on Calix's top-line growth. Intensifying competition remains a key headwind.
Ecolab (ECL) Faces Margin Pressure Amid Rising Costs and Soft Demand
Per the Zacks Analyst, Ecolab faces near-term pressure from rising costs and soft industrial demand, but productivity gains and steady organic growth should support its longer-term outlook.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Morgan Stanley (MS): Free Stock Analysis Report
Prologis, Inc. (PLD): Free Stock Analysis Report
BlackRock (BLK): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
Kewaunee Scientific Corporation (KEQU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).