Thursday, October 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 Eli Lilly and Co. (LLY), The Procter & Gamble Co. (PG) and Shell plc (SHEL), as well as two micro-cap stocks PrimeEnergy Resources Corp. (PNRG) and Aeries Technology, Inc. (AERT). 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 >>> Weekly Jobless Claims, Pre-Market Futures, Both Stay Low
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+39.9% vs. +25.6%). The company has seen extraordinary momentum in its cardiometabolic franchise. Demand for 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. Its new GLP-1 obesity pill, Foundayo, is expected to be a commercial game-changer. Its next-generation weight loss drug, retatrutide, if approved, could become another multibillion-dollar product.
Eli Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs. Rising pricing pressure on some drugs and potential competition in the GLP-1 market are top-line headwinds. Estimate movement is mixed ahead of Q3 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 Procter & Gamble have outperformed the Zacks Consumer Products - Staples industry over the past year (+1% vs. +0.6%). The company’s outlook is supported by strong brands, innovation, productivity gains and robust cash generation, though near-term growth remains modest. Fiscal 2026 organic sales rose 1%, with most categories and regions holding or growing sales and share trends improving in the second half.
For fiscal 2027, management expects 1-3% organic sales growth and up to 3% core EPS growth. Automation, AI tools and Supply Chain 3.0 should help fund reinvestment and offset inflation, while Tide, SK-II and Baby Care remain key innovation drivers.
However, higher input, freight and energy costs, continued reinvestment and slower growth in North America and Europe may constrain margins. Higher interest expense, lower non-operating income and currency headwinds also limit fiscal 2027 earnings growth and temper the pace of near-term profit recovery.
(You can read the full research report on Procter & Gamble here >>>)
Shell’s shares have gained +36.6% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +47.6%. The company’s investment case is supported by strong execution, cash generation and disciplined capital allocation. Its diversified operations, led by Integrated Gas, refining and trading, help capture value across changing markets.
Portfolio high-grading, cost control and improving returns on invested capital support efficiency, while divestments and the ARC Resources acquisition may strengthen growth. Shell continues to prioritize dividends and buybacks, backed by healthy free cash flow and lower debt. LNG remains a key strength, with LNG Canada adding scale and supporting demand.
Although commodity volatility, geopolitical disruptions and project execution remain risks, Shell’s operating resilience, shareholder-return framework and favorable earnings outlook support a positive view.
(You can read the full research report on Shell here >>>)
Shares of PrimeEnergy have outperformed the Zacks Oil and Gas - Exploration and Production - United States industry over the past year (+30.2% vs. +20%). This microcap company with a market capitalization of $331.67 million offers a long development runway supported by its core West Texas acreage, proved reserve base and diversified portfolio of producing assets, undeveloped inventory, and infrastructure.
PrimeEnergy’s debt-free balance sheet and available liquidity provide flexibility to fund drilling while continuing opportunistic share repurchases. Oil exposure and hedging also offer some protection from weak regional natural gas pricing. However, the investment case remains sensitive to commodity-price volatility, Permian takeaway constraints and successful execution of upcoming drilling programs needed to offset production declines.
Accelerating development spending and share repurchases could increase demands on liquidity, while derivative accounting may create earnings volatility. Asset-retirement obligations represent an additional long-term cash requirement as the producing portfolio matures.
(You can read the full research report on PrimeEnergy here >>>)
Aeries Technology’s shares have outperformed the Zacks Technology Services industry over the past year (+25.2% vs. -20.4%). This microcap company with a market capitalization of $36.31 million has seen its June-quarter revenues rose 43% to $21.9 million, gross margin expanded to 29.1%, operating income climbed to $3.4 million and operating cash flow reached $4.8 million.
Management expects fiscal 2027 revenues of $80-$84 million and adjusted EBITDA of $10-$12 million, supported by multi-year GCC (Global Capability Centers) engagements and expansion across India and Mexico. AxAI and AeriesOne add another growth avenue by extending the company into enterprise AI implementation and managed operations, while rapid GCC adoption provides a favorable long-term demand backdrop.
However, liquidity remains a concern given the working-capital deficit and going-concern uncertainty. Customer concentration and the recent $5.7 million annualized customer loss could also pressure revenue growth. Shares trade at 0.47X EV/sales versus higher industry level.
(You can read the full research report on Aeries Technology here >>>)
Other noteworthy reports we are featuring today include Hewlett Packard Enterprise Co. (HPE), Jabil Inc. (JBL) and Somnigroup International Inc. (SGI).
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) Key Drugs to Drive Sales Growth Amid Rising Competition
P&G (PG) Leverages Productivity and Cost Savings to Expand Margins
Shell's Portfolio Moves and Execution Strengthen Growth
Featured Reports
AI Infrastructure Demand Aids Hewlett Packard's (HPE) Prospects
Per the Zacks analyst, Hewlett Packard Enterprise is benefiting from growing AI infrastructure demand, with rising server revenue and strong orders supporting Cloud & AI growth.
Grab Rides on On-Demand GMV Strength and Financial Services Suite
Per the Zacks Analyst, Grab is benefiting from strong growth in its On-Demand Gross Merchandise Value ("MV" and a rapidly scaling Financial Services franchise.
Strategic Buyouts Aid Ensign Group (ENSG), High Expenses Ail
Per the Zacks analyst, Ensign Group's expertise in acquiring healthcare-related real estate and transforming them into market leaders are boosting performance. Yet, rising costs weigh on margins.
CarMax (KMX) Digital Growth Faces Offset From CAF Headwinds
Per the Zacks analyst, CarMax's digital initiatives improve customer engagement and sales conversion, while lower CAF penetration and credit risks may weigh on profitability.
Leasing Gains Aid Macerich (MAC), Still Tenant Bankruptcies Pose Risks
Per the Zacks analyst, Macerich benefits from strong retailer demand, rising occupancy and leasing gains. However, elevated debt, tenant failures and delayed store openings threaten cash flows.
Growing Capital Markets Business Aids Moelis & Company (MC), Costs Ail
Per the Zacks analyst, organic growth initiatives and efforts to expand capital markets activities will support Moelis & Company, while macroeconomic ambiguity and elevated expenses remain headwinds.
Inspire Medical (INSP) Eyes OSA Opportunity Amid Reimbursement Risks
Per the Zacks analyst, Inspire Medical's underpenetrated OSA market, clinical evidence and regulatory reach support growth, but coding issues, WISeR delays and GLP-1 competition pose near-term risks.
New Upgrades
Jabil (JBL) Rides on Strength in AI Infrastructure Vertical
Per the Zacks analyst, strong demand in AI data center infrastructure, capital equipment and warehouse automation will likely drive Jabil's top line. Its focus on product diversification is positive.
Somnigroup (SGI) Benefits From Mattress Firm Synergies, Global Growth
Per the Zacks analyst, Somnigroup's integrated bedding platform, Mattress Firm synergies, vertically integrated model, focus on innovation and international expansion should support growth.
SM Energy's (SM) Oil-Focused Operations in Premium Shale Basins Aid
Per the Zacks analyst, SM Energy's scaled presence across four U.S. shale basins supports its production outlook. Further, its portfolio high-grading efforts enhance returns.
New Downgrades
Fuel and Customer Risks Could Pressure NRG Energy (NRG)
Per the Zacks analyst, NRG Energy faces risks from supply-cost volatility, changing market rules and customer churn. Fuel supply disruptions could pressure generation and financial performance.
Mortgage Exposure and Rising Debt Hurts Fair Isaac (FICO) Prospects
Per the Zacks analyst, Fair Isaac faces challenges from mortgage market sensitivity, rising debt, intensifying competition and declining legacy software revenues.
Weak North America Sales & Higher Costs Weigh on Papa John's (PZZA)
Per the Zacks analyst, weak North America sales, lower orders, higher transformation costs and uneven execution weigh on Papa John's performance and cash generation, raising near-term 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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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
Eli Lilly and Company (LLY): Free Stock Analysis Report
Aeries Technology, Inc. (AERT): Free Stock Analysis Report
PrimeEnergy Corporation (PNRG): Free Stock Analysis Report
Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report
Jabil, Inc. (JBL): Free Stock Analysis Report
Somnigroup International Inc. (SGI): Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).