Monday, July 13, 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 SAP SE (SAP), UBS Group AG (UBS) and Cadence Design Systems, Inc. (CDNS), as well as two micro-cap stocks Village Super Market, Inc. (VLGEA) and Medalist Diversified, Inc. (MDRR). 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 & Inflation Numbers to Inform Trading Week
Today's Featured Research Reports
Shares of SAP have underperformed the Zacks Computer - Software industry over the past year (-46.6% vs. -27.5%). The Middle East conflict and broader macroeconomic and geopolitical uncertainty remain headwinds for the company. Despite these risks, it reaffirmed its full-year 2026 guidance, including 23-25% cloud revenue growth at cc to €25.8-€26.2 billion. Software support revenue is likely to decline faster as more customers shift to the cloud.
Nevertheless, SAP’s performance hinges on its high-growth cloud business, expanding margins, AI-driven differentiation and strong capital returns. Public cloud orders are gaining momentum, making up a major chunk of its quarterly volume, while SAP continued to gain market share against best-of-breed software vendors.
SAP expects AI-driven consumption models to lead cloud revenue growth by 2030. Rapid uptake of Rise with SAP and Grow with SAP solutions is aiding sales while SAP Business AI, Business Data Cloud and Sovereign Cloud are gaining solid traction.
(You can read the full research report on SAP here >>>)
UBS’ shares have outperformed the Zacks Banks - Foreign industry over the past year (+46.8% vs. +46.4%). The company’s earnings surpassed estimates in all the trailing four quarters. After completing the migration of former Credit Suisse clients, it remains on track to complete the integration by 2026, targeting nearly $13.5 billion in gross cost savings.
The strategic partnership with MSCI is expected to strengthen its private markets capabilities and client solutions. Net interest income (NII) growth and a strong capital position will support top-line growth.
However, elevated digital infrastructure and integration costs remain a concern. Despite progress in resolving Credit Suisse’s legacy issues, litigation and regulatory uncertainty may still pressure earnings. Its high debt/equity ratio raises concerns about capital distribution sustainability.
(You can read the full research report on UBS here >>>)
Shares of Cadence have outperformed the Zacks Computer - Software industry over the past year (+20.7% vs. -27.5%). The company’s top line performance is benefiting from higher design complexity and rising customer spend on AI-driven automation. Amid rapid AI proliferation, the Cadence.ai portfolio has been gaining strength and the new product launches (like AgentStack along with ChipStack, ViraStack and InnoStack AI Super Agents) are expected to aid in sustaining the momentum.
The hardware systems continue to gain traction from AI, HPC, robotics and automotive companies. The inorganic strategy is the calculated execution of its Intelligent System Design vision. Backlog stood at $8 billion.
Management now expects 2026 revenues to be between $6.125-$6.225 billion compared with $5.3 billion in 2025. Offsetting these positives, the Hexagon D&E acquisition is expected to be dilutive to the 2026 bottom line.
(You can read the full research report on Cadence here >>>)
Village Super Market’s shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+20% vs. +17.5%). This microcap company with a market capitalization of $637.55 million sees its long-term outlook supported by a robust investment cycle focused on larger replacement stores, remodels, merchandising initiatives and technology upgrades that should expand selling capacity, improve productivity and sustain revenue growth.
Healthy same-store sales, new store openings and continued expansion projects provide additional growth visibility. Strong operating cash flow enables the company to fund capital investments, reduce debt and maintain consistent dividend payments without relying heavily on external financing, while lower interest expenses and disciplined debt management further improve earnings quality and financial flexibility.
However, risks include persistent margin pressure from higher promotional, warehouse, labor and operating costs, significant dependence on Wakefern for merchandise and services. The stock trades at a meaningful discount to peers on EV/sales.
(You can read the full research report on Village Super Market here >>>)
Shares of Medalist Diversified have gained +4.6% over the past year against the Zacks REIT and Equity Trust - Other industry’s gain of +14.1%. This microcap company with a market capitalization of $18.25 million is transitioning from a traditional REIT to an asset-light DST sponsor, with fee income expected to replace property ownership as its primary earnings driver.
The inaugural Tesla Pensacola DST validates the strategy, though monetization remains early and near-term results reflect launch costs rather than recurring fees. Asset sales have strengthened liquidity, reduced debt and improved flexibility, while the remaining portfolio is concentrated in high-occupancy, net-lease assets with strong tenant credit profiles.
Yet execution risk remains elevated until DST fundraising scales and fee income become recurring. Dividend sustainability depends on improving operating cash flow rather than one-time asset gains. The valuation suggests investors remain skeptical of the transition, leaving meaningful upside if MDRR successfully scales recurring DST fee income.
(You can read the full research report on Medalist Diversified here >>>)
Other noteworthy reports we are featuring today include Agnico Eagle Mines Ltd. (AEM), TE Connectivity plc (TEL) and Bayer Aktiengesellschaft (BAYRY).
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
SAP Banks on Cloud & AI Strength Amid Global Macro Volatility
Inorganic Growth Supports UBS Group AG (UBS) Amid Rising Costs
Cadence (CDNS) Gains From Rising AI-Driven EDA and Hardware Demand
Featured Reports
Growth Projects, Higher Prices Aid Agnico Eagle (AEM)
Per the Zacks analyst, the company will benefit from investment in growth projects to expand output and higher realized gold prices amid headwinds from higher costs.
TE Connectivity (TEL) Benefits From AI and Industrial Demand
Per the Zacks analyst, TE Connectivity benefits from AI and industrial demand, with record orders, a growing backlog, and strong free cash flow supporting growth.
Kroger's (KR) Digital Business Strengthens Growth Outlook
Per the Zacks analyst, Kroger's customer-focused strategy, improving grocery trends and a more profitable e-commerce platform are expected to support the company's long-term growth.
Solid Top Line & Strong Cash Flows Drive Unum Group (UNM)
Per the Zacks analyst, Unum Group is set to grow on strong revenues driven by higher overall persistency and healthy balance sheet should drive long-term growth. Yet, high expenses remain a concern.
Etsy (ETSY) Gains From AI, Marketplace Strength and Cash Flow
Per the Zacks analyst, Etsy's AI-driven discovery, differentiated marketplace and solid free cash flow are supporting buyer engagement, monetization and long-term shareholder returns.
D-Wave (QBTS) Sees Bookings Strength Amid Deal Conversion Risk
The Zacks analyst is impressed with D-Wave Quantum's $20 million system sale to Florida Atlantic University leading to a surge in Bookings. Large-deal revenue conversion delays can widen its losses.
Leasing Demand Aids Innovative Industrial (IIPR), Tenant Defaults Ail
Per the Zacks analyst, leasing execution and life science income support recurring cash flow for Innovative Industrial. Refinancing progress adds balance-sheet visibility. Yet, tenant defaults ail.
New Upgrades
Nubeqa, Kerendia and New Drug Approvals Propel Bayer (BAYRY)
Per the Zacks analyst, new drug approvals and label expansion of drugs fuel Bayer's growth. The pipeline progress is encouraging and positive updates on the Roundup litigation case is positive.
Expeditors (EXPD) Rides on E-commerce Growth, Airfreight Strength
Per the Zacks Analyst, e-commerce demand strength acts as a tailwind for growth of companies like Expeditors. An uptick across Airfreight services continues to boost Expeditors top line.
Increasing Maintenance, Repair and Overhaul Orders Aid AAR Corp. (AIR)
Per the Zacks analyst, AAR Corp. is likely to benefit from higher demand for maintenance, repair and overhaul services as aircraft usage rises and fleets continue to age.
New Downgrades
Resource Volatility, Third-Party Risks Weigh on Clearway Energy (CWEN)
Per the Zacks analyst Clearway Energy's power production from renewable asset gets impacted due to adverse weather conditions. Third-party transmission line failure can hurt operation.
Commodity Price Risks & Cost Inflation Weigh on Eni's Outlook
Per the Zacks analyst, exposure to commodity-price volatility and persistent, conflict-related cost inflation may pressure Eni's cash flows and undermine project returns.
High Costs & Macro Woes Ail Wynn Resorts' (WYNN) Prospects
Per the Zacks analyst, Wynn Resorts is grappling with high operating costs, Al Marjan delay and shipping challenges. Also, renovation-driven disruption and elevated capital spending are concerns.
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%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UBS Group AG (UBS): Free Stock Analysis Report
SAP SE (SAP): Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report
TE Connectivity Ltd. (TEL): Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
Village Super Market, Inc. (VLGEA): Free Stock Analysis Report
Medalist Diversified REIT, Inc. (MDRR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).