Wednesday, July 8, 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 Tesla, Inc. (TSLA), Bank of America Corp. (BAC) and Merck & Co., Inc. (MRK), as well as two micro-cap stocks EVI Industries, Inc. (EVI) and Onfolio Holdings, Inc. (ONFO). 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 >>> Unstable Peace Talks Send Pre-Markets Lower
Today's Featured Research Reports
Shares of Tesla have gained +36.2% over the past year against the Zacks Automotive - Domestic industry’s gain of +45.5%. The company crushed second-quarter delivery estimates, with deliveries also rising sequentially and year over year. Tesla's Energy Generation and Storage business remains a key diversification driver, led by Megapack and Powerwall.
Tesla’s charging footprint continues to expand alongside its broader services ecosystem, with V4 Supercharging cabinets ramping up production at Gigafactory New York. The automaker continues to position FSD as a software product delivered through its vehicles.
However, Tesla is entering a heavy investment cycle, guiding for more than $25 billion in capex across 2025-2026 and expecting negative free cash flow through the rest of 2026. Delays to robotaxi expansion into seven U.S. cities and the postponement of the Optimus V3 robot reveal cloud the outlook. Thus, the stock warrants a cautious stance at present.
(You can read the full research report on Tesla here >>>)
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+30.6% vs. +30.4%). The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Net interest income (NII) growth is expected to continue supported by steady loan growth and lower funding costs.
Bank of America’s expansion strategy by opening financial branches in new and existing markets will boost the top line. Along with this, investments in digital capabilities will enhance client engagement and cross-selling opportunities, likely driving fee income.
However, elevated expenses due to investments in technology and franchise expansion will likely hurt the bottom line to an extent in the near term. The volatile nature of the capital markets business makes growth in trading revenues uncertain. Weak asset quality is another concern, which might hamper financials.
(You can read the full research report on Bank of America here >>>)
Shares of Merck have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+59.1% vs. +38%). The company’s blockbuster drug, Keytruda, and new products have been driving sales. Animal Health is also contributing to growth. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.
New products, Winrevair, Welireg and Capvaxive, key pipeline progress and expansion of its respiratory and infectious disease and oncology portfolios through the acquisitions of Verona Pharma, Cidara Therapeutics and Terns Pharmaceuticals have improved its long-term growth prospects.
However, it faces several near-term challenges, including persistent challenges for Gardasil in China, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs. Estimates have risen ahead of Q2 results. Merck has a positive record of earnings surprises in recent quarters.
(You can read the full research report on Merck here >>>)
EVI Industries’ shares have underperformed the Zacks Industrial Services industry over the past year (-41.4% vs. +4%). This microcap company with a market capitalization of $206.29 million has seen its SG&A expenses continue to outpace revenue, limiting earnings leverage, while project delays create quarterly volatility. Elevated inventory, weaker operating cash flow and higher debt-funded financing costs remain additional risks. The stock trades at a meaningful discount to peer valuation multiples.
Nevertheless, EVI's long-term buy-and-build strategy continues to strengthen its competitive position, with growing scale supporting higher gross margins, broader geographic reach and expanding operating capabilities.
Record fiscal 2026 revenues, despite project timing delays, reflect resilient underlying demand, while a healthy backlog provides visibility for future revenue recognition. Continued acquisitions, including Belenky, deepen market penetration, and growth in recurring revenues through chemical solutions and service offerings enhances earnings quality and customer retention.
(You can read the full research report on EVI Industries here >>>)
Shares of Onfolio have underperformed the Zacks Internet - Commerce industry over the past year (-59.8% vs. +2.3%). This microcap company with a market capitalization of $2.77 million is facing challenges by uneven performance across acquired businesses, pressure on the revenue mix, and the need to demonstrate sustainable post-acquisition growth.
Profitability is further constrained by acquisition-related amortization and impairment risk, elevated financing costs, liquidity pressure, and reliance on external funding. Convertible securities, potential shareholder dilution, and a cryptocurrency treasury strategy add further financial and balance-sheet risk.
Nevertheless, the company’s investment case centers on its strategy of acquiring and integrating online businesses into a shared, AI-enabled operating platform to improve efficiency, expand cross-selling opportunities, and create long-term value through disciplined capital allocation. A stronger capital framework supports renewed acquisition activity and portfolio expansion, while recurring agency services provide a degree of revenue visibility.
(You can read the full research report on Onfolio here >>>)
Other noteworthy reports we are featuring today include Datadog, Inc. (DDOG), Cloudflare, Inc. (NET) and DICK'S Sporting Goods, Inc. (DKS).
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
Tesla (TSLA) Benefits from Energy Business Amid FCF Pressure
Expansion Efforts, Loan Growth Aids Bank of America (BAC), Costs Ail
Merck's (MRK) Growth Outlook Stable Despite Keytruda Patent Cliff
Featured Reports
Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is benefiting from solid adoption of its growth-oriented application services, Zero Trust and Workers products. Acquisitions like VoidZero and Astro are positive.
DICK'S Sporting's (DKS) Strong Brand Aids Market Share Gains
Per the Zacks analyst, DICK'S strong brand, differentiated offerings and loyal customers are driving market share gains. Robust comps, higher spending and growing engagement support sales growth.
Ensign Group (ENSG) Gains on Patient Volumes Amid Reimbursement Risks
The Zacks analyst believes strong patient volumes drive Ensign Group's growth. However, reimbursement risks remain a headwind.
Investments and Key Acquisitions Aid National Fuel Gas (NFG)
Per the Zacks analyst, National Fuel Gas expands through strategic acquisitions. Its disciplined capital investments to enhance natural gas and oil operations is boosting total production.
Urban Outfitters (URBN) Rides Brand and Nuuly Momentum
Per the Zacks analyst, Urban Outfitters' (URBN) multi-brand strength, FP Group's sustained growth and Nuuly's rapid subscriber expansion continue to support its long-term growth trajectory.
Digital Billboard Push Aids OUTFRONT Media (OUT) Amid High Competition
Per the Zacks Analyst, strategic investments in its digital billboard portfolio and out-of-home advertising platform expansion to aid OUTFRONT Media amid competition from other outdoor advertisers.
Solid Backlog & M&A Activities Aid Ondas (ONDS), Integration Risks Ail
Per the Zacks analys, hyper revenue growth, strong backlog and M&A-led expansion boost Ondas. Integration complexity from rapid M&A temper its prospects.
New Upgrades
Datadog (DDOG) Banks on Cloud Partnerships, Customer Additions
Per the Zacks Research analyst, Datadog is benefitting from expanding customer base driven by increased adoption of its cloud-based monitoring and analytics platform.
ZTO Express (ZTO) Benefits From Increase in Parcel Volumes
Per the Zacks Analyst, increase in parcel volumes aids ZTO Express' express delivery services unit. Strong liquidity and a shareholder-friendly approach also bode well for ZTO.
Veracyte (VCYT) Thrives on Decipher Strength, New Launches Underway
The Zacks analyst is upbeat about the continued uptake of Veracyte's Decipher prostate cancer test, backed by its NCCN guideline inclusion. The upcoming Prosigna LDT launch marks a key growth phase.
New Downgrades
Sarepta's (SRPT) Overdependence on DMD Therapies a Woe
Though Sarepta has four marketed products in its portfolio, all target the DMD indication. This concentrated focus on one target market concerns the Zacks Analyst.
High Debt Levels to Weigh on Petrobras (PBR)
The Zacks analyst believes that Petrobras' reported gross debt of about $71.2 billion during the first quarter of 2026 leads to pressure on cash flow generation and its balance-sheet stability.
Macro Woes & High Costs Ail Shake Shack's (SHAK) Prospects
Per the Zacks analyst, Shake Shack is grappling with macro volatility, elevated beef costs and softer consumer trends. Also, weather-related disruptions pose concerns.
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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Bank of America Corporation (BAC): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
Tesla, Inc. (TSLA): Free Stock Analysis Report
EVI Industries, Inc. (EVI): Free Stock Analysis Report
Cloudflare, Inc. (NET): Free Stock Analysis Report
Datadog, Inc. (DDOG): Free Stock Analysis Report
Onfolio Holdings Inc. (ONFO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).