Thursday, May 28, 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 Citigroup Inc. (C), TotalEnergies SE (TTE) and AppLovin Corp. (APP), as well as two micro-cap stocks The Eastern Co. (EML) and Acorn Energy, Inc. (ACFN). 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 >>> Dump-Truck of Economic Data: PCE, Claims, Goods & More
Today's Featured Research Reports
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+23.3% vs. +2.7%). The company’s earnings beat estimates in all the trailing four quarters. Improving loan demand and easing funding costs are expected to support net interest income (NII) growth. Ongoing transformation initiatives, including consumer business exits and operational streamlining, are expected to aid revenue growth, with management projecting a 4-5% compound annual growth rate (CAGR) through 2026.
Citigroup’s expansion into private credit, including the recent partnership with BlackRock-backed HPS Investment Partners, boosts revenue diversification, with a strong capital base supporting shareholder returns.
However, its rising cost due to business transformation efforts and technological advancement are worrisome. Volatility in fee income and deteriorating asset quality are concerning too.
(You can read the full research report on Citigroup here >>>)
Shares of TotalEnergies have outperformed the Zacks Oil and Gas - Refining and Marketing industry over the past six months (+34.8% vs. +34.1%). The company’s overall production volume was impacted by the Middle East crisis, but its production outside the region and higher oil prices will offset the impact.
TotalEnergies is gaining from contributions coming from startups, acquired assets, well-spread LNG assets and assets located in the new hydrocarbon-producing regions. The company aims to generate 15-20% of sales from low-carbon business by 2040 and reduce emissions in the process.
Yet, TotalEnergies operates multiple assets globally, and in some regions, production might be impacted due to security concerns. It remains exposed to acquisition-related risks as these assets contribute a sizable volume to production.
(You can read the full research report on TotalEnergies here >>>)
AppLovin’s shares have outperformed the Zacks Technology Services industry over the past year (+50.7% vs. +15.6%). The company’s marketplace and model show structural advantages. MAX real-time bidding and Axon upgrades are improving matching and driving share gains, and management is confident into early 2026.
Strong profitability and cash generation fund AI and self-serve investments and buybacks. Emerging web/e-commerce demand offers a second growth leg as self-serve tools mature. Offsets: e-commerce is early, onboarding is gated, creative automation remains in pilot, and early-year seasonality is a headwind.
Limited mix disclosure and no annual outlook constrain visibility. Performance marketing is ROI-disciplined, but quarterly noise may persist. With clear assets but proof points ahead, risk-reward is balanced; Street 2026/2027 EPS estimates have edged up recently, and the shares have broadly tracked those changes.
(You can read the full research report on AppLovin here >>>)
Shares of Eastern have outperformed the Zacks Security and Safety Services industry over the past six months (+18.3% vs. -22.9%). This microcap company with a market capitalization of $128.7 million has its investment outlook tied to improving demand recovery entering H2 2026, supported by sequential sales growth and stronger customer order visibility.
Liquidity remains solid, with positive operating cash flow, lower inventory, improved leverage metrics, and ample borrowing capacity supporting operations, acquisitions, dividends, and buybacks. Management continues investing in automation, ERP upgrades, lean manufacturing, and new product launches to improve efficiency and operating leverage ahead of an industrial recovery. Diversified exposure across transportation and industrial markets adds stability.
Key risks include margin pressure from poorly priced Big 3 contracts, persistent weakness in packaging demand, tariff-driven cost inflation, and sensitivity to weaker earnings given variable-rate debt and covenant requirements. Valuation remains discounted versus peers on EV/sales metrics.
(You can read the full research report on Eastern here >>>)
Acorn Energy’s shares have gained +22.1% over the past six months against the Zacks Electronics - Miscellaneous Products industry’s gain of +45%. This microcap company with a market capitalization of $42.36 million has transitioned toward a high-margin, recurring monitoring model, driving margin expansion and improving revenue visibility through prepaid renewals. While hardware revenue remains volatile, deployments expand the installed base, supporting monitoring growth.
The telecom contract is shifting from hardware fulfillment to recurring monitoring monetization, while the AIO partnership broadens exposure into telecom, data center and utility infrastructure with potentially larger deal sizes. Product upgrades and lower R&D spending support scalability and operating leverage.
Risks include hardware cyclicality, long enterprise sales cycles, customer concentration and execution risk tied to the IS/AIO ramp. The valuation suggests investor caution, creating upside potential if recurring monitoring growth and operating leverage continue scaling.
(You can read the full research report on Acorn Energy here >>>)
Other noteworthy reports we are featuring today include Zscaler, Inc. (ZS), Ralph Lauren Corp. (RL) and Hasbro, Inc. (HAS).
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
Streamlining Efforts Support Citigroup (C) Amid Rising Costs
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
AppLovin (APP) Maintains Strong Profit Amid Limited Mix Visibility
Featured Reports
Ralph Lauren's (RL) Brands & Digital Initiatives Appear Encouraging
Per the Zacks analyst, Ralph Lauren's digital efforts are supported by investments in personalization, data analytics and omnichannel services. It focuses on brand elevation and operational agility.
Strength in U.S. Spine Aids Globus Medical (GMED), Macro Woes Worry
The Zacks analyst is impressed with Global Medical's ongoing momentum in the U.S. Spine business, with double-digit growth across many categories. Yet, macroeconomic-driven pressures pose a risk.
Jack Henry & Associates (JKHY) Gains From Strong Client Momentum
Per the Zacks analyst, Jack Henry benefits from solid momentum across commercial banks, credit unions and other financial institutions as they benefit from AI-enhanced tools.
Cost Reduction Efforts to Aid Dana (DAN) Amid EV Demand Softness
Per the Zacks analyst, Dana's cost reduction efforts, supported by material, engineering, and conversion efficiencies, remain a major tailwind. However, moderation in EV demand remains a concern.
Solid Growth of Digital Platform Aids Western Union (WU)
Per the Zacks Analyst, the company's digital platform has been adding customers and strengthening business. Streamlining of business operations will help it to focus on core competencies.
Cimpress (CMPR) Gains on Segment Strength, High Debt Ails
Per the Zacks analyst, strength in Cimpress' Vista and National Pen units, aided by solid demand for apparel and packaging products lends momentum to it. However, high debt level remains a concern.
Kodiak Sciences' Pipeline Advances, No Marketed Drug Remains a Concern
Per the Zacks Analyst, Kodiak is progressing in eye disease therapies with promising retinal treatments, but lack of a marketed drug continues to weigh on its near-term outlook and revenue visibility.
New Upgrades
Zscaler (ZS) Benefits From Acquisitions and Portfolio Expansion
Per the Zacks analyst, Zscaler benefits from strategic acquisitions like SquareX and Red Canary. Frequent product launches and growing adoption of metered usage solutions are driving customer wins.
Hasbro (HAS) Benefits From Gaming Strength & Digital Expansion
Per the Zacks analyst, Hasbro is benefiting from strong MAGIC: The Gathering demand and distribution gains. Digital and partnership initiatives are supporting the company's growth outlook.
Vistance (VISN) Rides on Healthy Demand, Strategic Divestiture
Per the Zacks analyst, solid traction in the Aurora segment will likely drive Vistance's topline. The divestiture of RUCKUS Networks business will drive investment in innovation.
New Downgrades
High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high-margin assets and efficient cost management will drive performance over the long run.
ConocoPhillips' (COP) Low-Cost Shale Assets Aid Production Growth
ConocoPhillips' untapped premium drilling locations across key U.S. shale basins support a robust production outlook. However, exposure to commodity-price volatility concerns the Zacks analyst.
Rising Expenses Impede Starwood Property's (STWD) Growth
Per the Zacks analyst, rising costs due to investment in franchise and any volatility in the mortgage market will likely affect the Starwood Property's growth.
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Citigroup Inc. (C): Free Stock Analysis Report
Hasbro, Inc. (HAS): Free Stock Analysis Report
Ralph Lauren Corporation (RL): Free Stock Analysis Report
Acorn Energy Inc. (ACFN): Free Stock Analysis Report
AppLovin Corporation (APP): Free Stock Analysis Report
Eastern Company (The) (EML): Free Stock Analysis Report
Zscaler, Inc. (ZS): Free Stock Analysis Report
TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).