Top Analyst Reports for Exxon Mobil, Home Depot & IBM

Wednesday, July 16, 2025

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 Exxon Mobil Corp. (XOM), The Home Depot, Inc. (HD) and ISM Corp. (IBM), as well as a micro-cap stock Friedman Industries, Inc. (FRD). 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 >>>

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You can read today's AWS here >>> Strong Q2 Earnings, Cooling PPI Lead Pre-Markets Higher

Today's Featured Research Reports

Exxon Mobil’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+6.7% vs. +4.9%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience. 

With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. The company reported better-than-expected Q1 earnings fueled by higher production from Guyana, Permian, and structural cost savings. 

Yet, refining profits weakened due to a significant fall in industry refining margins. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped due to the impact of OPEC+ output hikes.

(You can read the full research report on Exxon Mobil here >>>)

Shares of Home Depot have declined -1.3% over the past year against the Zacks Retail - Home Furnishings industry’s decline of -5.2%. The company faces softer demand in big-ticket discretionary categories, reflecting consumer caution amid high interest rates. Margin pressure, currency headwinds, and macroeconomic uncertainty also remain key risks. 

HD is also navigating a complex global trade environment, with rising tariffs. Nevertheless, the company continues to benefit from its progress in building an interconnected shopping experience, synergies from the SRS acquisition, expansion of its Pro ecosystem, strategic digital investments, and new store openings. 

These factors contributed to robust top-line growth in the first quarter of fiscal 2025, driven by increased engagement in Spring-related purchases and smaller-scale home improvement projects.

(You can read the full research report on Home Depot here >>>)

IBM’s shares have outperformed the Zacks Computer - Integrated Systems industry over the past year (+54.8% vs. +16.8%). The company is poised to benefit from strong demand for hybrid cloud and AI, driving growth in Software and Consulting. The company’s growth is expected to be driven primarily by analytics, cloud computing, and security in the long haul. 

The acquisition of Hakkoda has strengthened its data expertise and augmented its capability to support clients’ AI transformation initiatives. IBM is collaborating with SAP to tap generative AI technology within the retail industry. The collaboration is likely to facilitate higher productivity and help accelerate business transformation in consumer-packaged goods and retail firms. 

However, declining net sales in the Consulting segment, owing to soft demand in some end markets, are straining margins. Macroeconomic headwinds are worrisome. IBM’s frequent acquisitions have escalated integration risks.

(You can read the full research report on IBM here >>>)

Shares of Friedman Industries have gained +5.8% over the year-to-date period against the Zacks Metal Products - Procurement and Fabrication industry’s gain of +9.9%. This microcap company, with a market capitalization of $112.03 million, is executing a value-driven transformation marked by tangible book value growth through strategic acquisitions, capital-efficient expansion (notably the high-margin Sinton facility) and disciplined capital allocation. 

The Sinton plant, now fully operational, delivers superior margins and supports long-term flat-roll growth. Hedging programs enhance margin stability amid steel price volatility, while flat-roll scale, customer diversification and geographic reach enhance stability.

Yet, structural margin compression from falling prices and weak demand in both flat-roll and tubular segments, persistent inventory turnover risk, elevated debt and rising interest costs pose headwinds. Despite challenges, FRD’s low valuation and exposure to steel market tailwinds offer long-term upside with risks tied to pricing and execution.

(You can read the full research report on Friedman Industries here >>>)

Other noteworthy reports we are featuring today include Abbott Laboratories (ABT), ServiceNow, Inc. (NOW) and CrowdStrike Holdings, Inc. (CRWD).

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

ExxonMobil's (XOM) Permian Basin & Guyana Assets Aid Growth

Home Depot's (HD) Focus on Pro Customers to Bolster Growth

IBM Rides on Strong Customer Addition in Software Segment

Featured Reports

Abbott (ABT) EPD Gains in Emerging Space on Branded Generics

The Zacks analyst is hopeful about Abbotts branded generics model which may help the company to further intensify its Established Pharmaceuticals Division (EPD) arm in key emerging countries.

Growing Customer Base & Partnerships Aid ServiceNow (NOW)

Per the Zacks analyst, ServiceNow benefits from rising adoption of its workflows from companies undergoing digital transformation. Also, expanding partner base is a tailwind.

CrowdStrike (CRWD) Rides on Product Strength, Acquisitions

Per the Zacks analyst, CrowdStrike is gaining from solid contributions of its growth-oriented products, primarily Falcon platform. Also, buyouts like Adaptive Shield and Flow Security are positive.

Strong Revenue Growth & Liquidity Aid Deutsche Bank (DB)

Per the Zacks analyst, Deutsche Bank's rising revenues from capital-light units boost growth. Also, strong liquidity and stable deposits support capital distribution efforts.

Acquisitions & Strong Balance Sheet Benefits Rollins (ROL)

Per the Zacks analyst, buyouts accelerate Rollins' business development and expand its global reach. A robust balance sheet position strengthens financial stability, raising investor appeal.

Investments, Clean Generation Focus Aid PPL Corporation (PPL)

Per the Zacks analyst, PPL's strategic investment of $20 billion during 2025-2028 should strengthen its infrastructure. Focus on renewables projects should further boost margins.

Cost Cuts Aid Scotts Miracle-Gro (SMG) Amid Hawthorne Woes

While the company faces headwinds in the Hawthorne segment, it should gain from supply-chain cost savings, leading to margin improvements, per the Zacks analyst.

New Upgrades

Affirm (AFRM) Rides On Active Merchant Numbers & GMV Growth

The Zacks Analyst expects growth in Affirm's active merchant count and improvement in Gross Merchandise Value to drive its top line. New deals and expansions will further enhance performance.

Strong Demand for Key Drugs Drive BioMarin's (BMRN) Sales

While BioMarin's key drugs like Vimzim and Naglazyme continue to drive sales, the Zacks Analyst is encouraged by rapid uptake for dwarfism drug Voxzogo which has opened up a new sales opportunity.

Sturdy Comps Run to Fuel Grocery Outlet's (GO) Top Line

Per the Zacks analyst, Grocery Outlet's opportunistic purchasing, marketing efforts and new product offerings facilitate comparable-store sales growth. Management expects comps growth of 1-2% in 2025.

New Downgrades

U.S. Cellular (USM) Plagued by Soft Demand, Stiff Competition

Per the Zacks analyst, intensifying competition in the wireless market combined with a declining postpaid and prepaid retail connections will likely hinder U.S. Cellular's top line.

Rising Expenses Squeeze Acadia Healthcare's (ACHC) Margins

Per the Zacks analyst, rising salaries, benefits and supply costs are likely to keep pressuring Acadia Healthcare's margins. It is also still recovering from last year's reputational hit.

Caesars (CZR) Struggles With Rising Costs & Regional Setbacks

Per the Zacks analyst, Caesars Entertainment faces pressure from rising expenses and external challenges. Adverse weather events and localized disruptions have weighed on the company's operations.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research