Monday, August 3, 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 Amazon.com, Inc. (AMZN), Marvell Technology, Inc. (MRVL) and Starbucks Corp. (SBUX), as well as two micro-cap stocks Preformed Line Products Co. (PLPC) and Crown Crafts, Inc. (CRWS). 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.
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You can read today's AWS here >>>Â Busy Q2 Earnings & Jobs Week
Today's Featured Research Reports
Amazon’s shares have outperformed the Zacks Internet - Commerce industry over the year-to-date period (+17.7% vs. +9.2%). The company’s international expansion and diversification across e-commerce, AWS cloud services, advertising, and streaming create multiple revenue streams while reducing concentration risk.Â
For 3Q’26, Amazon guided net sales of $197-$202 billion and operating income of $22.5-$26.5 billion. AI integration across operations enhances personalization, logistics, and AWS offerings, strengthening competitive positioning. However, substantial capital expenditure requirements for AI infrastructure and data centers strain financial resources and compress margins, with trailing-12-month free cash outflow reported at $7.6 billion.Â
Amazon.com’s expanding debt burden reduces financial flexibility amid rising interest rates. Intensifying competition from Walmart in retail and cloud rivals like Microsoft Azure and Google Cloud is an overhang.
Shares of Marvell have outperformed the Zacks Electronics - Semiconductors industry over the year-to-date period (+121% vs. +24.6%). The company is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook. Management now expects about 40% revenue growth in fiscal 2027.Â
The expanded NVIDIA partnership, including NVLink Fusion and optics collaboration, embeds Marvell deeper in hyperscaler roadmaps and supports program ramp. Recent acquisitions broaden scale-up capabilities. Communications and other is recovering as inventories normalize.Â
Offsetting that, profitability can swing with product mix as newer platforms scale, and results remain concentrated in a small set of customers. Exposure to export controls, tariffs and overseas shipments can disrupt demand and supply, and competition remains intense in storage and connectivity markets.
Starbucks’ shares have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+26.5% vs. +3.6%). The company reported mixed third-quarter fiscal 2026 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short. Earnings rose 70% year over year, while net revenues declined 1.4%. Global comparable sales increased 7.9%, driven by transaction and ticket growth.Â
North America benefited from stronger traffic, delivery, food attachment and beverage modifications, while International comps improved despite the China model transition. Sales leverage, lower inflation and tariff refunds supported margin expansion, and new store growth added scale.Â
Raised fiscal 2026 guidance and expanding margins improve visibility into the recovery. However, restructuring costs, labor investments, unfavorable mix and elevated operating costs remain concerns.Â
Shares of Preformed Line Products have outperformed the Zacks Electronics - Miscellaneous Products industry over the year-to-date period (+73.1% vs. +41.6%). This microcap company with a market capitalization of $1.74 billion is positioned to benefit from long-term demand trends in grid modernization, energy infrastructure, and connectivity markets. Its diversified product portfolio across energy and communications, supported by global manufacturing capabilities, provides exposure to multiple infrastructure investment cycles.Â
The company’s ability to serve customers across regions, expand capacity, and improve operational execution supports its long-term growth profile and earnings resilience.Â
However, profitability remains exposed to manufacturing cost fluctuations, pricing execution, and rising operating expenses. Ongoing investments in facilities and capacity require effective capital deployment and sustained demand to generate attractive returns. Higher working capital needs and variability in international tax factors may also create fluctuations in cash conversion and reported earnings.
Crown Crafts’ shares have outperformed the Zacks Textile - Home Furnishing industry over the year-to-date period (+12.8% vs. -27.1%). This microcap company with a market capitalization of $31.74 million has a diversified product portfolio, strengthened by the Baby Boom acquisition, expands exposure to growth areas such as bibs, toys and disposable products while reducing reliance on weaker categories.Â
Investments in Manhattan Toy, including the Groovy Girls relaunch, product innovation and multi-channel expansion support growth. CRWS has improved profitability through pricing actions, product mix and cost discipline, with operating cash flow supporting dividends, product development and balance sheet management.Â
However, tariff pressures, retailer concentration, elevated inventory and legacy category weakness remain challenges. Dependence on Walmart and Amazon increases sensitivity to assortment decisions, while licensing and competition add volatility. The valuation reflects concerns but leaves room for upside if growth initiatives and margins improve.
Other noteworthy reports we are featuring today include Vertiv Holdings Co. (VRT), Entergy Corp. (ETR) and Arch Capital Group Ltd. (ACGL).
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
Featured Reports
According to the Zacks analyst, Entergy plans to invest $67B during 2026-2030 to expand generation, modernize transmission and distribution infrastructure, and support long-term rate base growth.
Per the Zacks analyst, Arch Capital is set to grow on rate increases, growth in existing accounts and global operations. However, exposure to cat loss induces earnings volatility.
Per the Zacks analyst, Host Hotels' strong transient-leisure demand and steady group business support growth. However, rising wage costs pressure margins, while competition limits rate growth.
The Zacks analyst likes the shareholder-friendly measures adopted by Knight-Swift. However, rise in operating expenses and high debt are likely to hurt the bottom line.
Per the Zacks analyst, strong sales of Alkermes' proprietary drugs are driving growth. The restructuring initiatives are a positive. Heavy dependence on proprietary drugs for revenues remains a woe.
The Zacks analyst believes Patterson-UTI Energy's advanced Apex rigs improve drilling efficiency, supporting higher utilization and stronger earnings as U.S. drilling activity recovers.
The acquisition of Stereolabs expands the Ouster's footprint in the Physical AI market, but the Zacks analyst is concerned about supply-chain constraints that could limit production volumes.
New Upgrades
Per the Zacks analyst, strong AI-driven demand for power and cooling solutions, expanding capacity, and improving margins are aiding Vertiv's long-term growth prospects.
Per the Zacks analyst, Generac's performance is gaining from robust C&I growth, fueled by data center demand and solid backlog. 2026 C&I sales now projected to grow in the low 30% range.
Per the Zacks analyst, Newell's focus on innovations, higher brand support and better retail execution have been driving sales. Distribution gains and disciplined productivity are added positives.
New Downgrades
The Zacks analyst is concerned that weak gold sales at Mount Milligan and lower-than-expected silver recovery at Pueblo Viejo will hurt Royal Gold's earnings in the coming quarters.
Per the Zacks Analyst, elevated integration expenses and continued pricing pressure from competitors constrain Columbia Banking's near-term upside potential.
Per the Zacks Analyst, TransMedics' growth initiatives are overshadowed by legal scrutiny, reimbursement uncertainty and margin pressures, posing risks to execution despite expansion efforts.
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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