Research Highlights: December 2, 2025
The Zacks Research Daily showcases the premier output of our analytical team. Today’s report features detailed insights on 16 significant stocks, including renowned names such as Apple Inc. (AAPL), Tesla, Inc. (TSLA), and Micron Technology, Inc. (MU).
Additionally, we draw attention to two micro-cap entities: Hamilton Beach Brands Holding Co. (HBB) and Key Tronic Corp. (KTCC). Our micro-cap research stands out nationally, as it is the sole comprehensive analysis available for these often-overlooked companies.
These reports have been meticulously selected from approximately 70 publications issued by our analysts today.
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Research Highlights
Shares of Apple Inc. have notably outperformed the Zacks Computer – Micro Computers sector over the past year, achieving a gain of +17.6% compared to the industry’s +16.7%.
The company is capitalising on robust growth within its Services segment, boasting over 1 billion paid subscribers.
Anticipation surrounds the forthcoming iPhone 17 series, expected to bolster revenue. Furthermore, advancements in AI capabilities present a commendable pivot.
Apple forecasts a year-over-year increase in net sales between 10% and 12% for the December quarter (first-quarter fiscal 2026). iPhone sales are projected to grow significantly. However, the Mac segment faces daunting year-over-year comparisons, and Services are expected to expand at the 2025 rate.
The company expects a gross margin of 47-48% for Q1 of fiscal 2026, factoring in a $1.4 billion tariff impact. Regulatory challenges and tariffs pose notable concerns. AAPL shares have reached all-time highs this afternoon.
Meanwhile, Tesla shares have outpaced the Zacks Automotive – Domestic sector over the previous year, rising by +22.5% against +21.1% for the industry.
The company set a new delivery benchmark in Q3, though much of this surge was attributable to buyers anticipating the expiration of a $7,500 EV tax incentive.
With these incentives now withdrawn and heightened competition from Chinese EV manufacturers, a decline in Q4 deliveries is anticipated. Sales have decreased across vital markets, particularly in Europe.
Automotive margins are under scrutiny; however, areas such as the Energy Generation & Storage unit remain robust, and expansion of the Supercharger network continues. Tesla’s robotaxi service, initially launched in Austin in June, has extended its reach to California, Nevada, and Arizona.
Their strategic pivot towards artificial intelligence, autonomous driving, and robotics offers promising potential, albeit these innovations may take years to mature. For the moment, caution prevails regarding the stock.
On the other hand, shares of Micron Technology have surged, outperforming the Zacks Computer – Integrated Systems sector year-to-date with a stellar increase of +188.2%, compared to +80.9% for its counterparts.
The firm is poised to reap benefits from the burgeoning AI-driven memory and storage markets, with inventory improvements significantly enhancing top-line growth.
The escalating demand for High Bandwidth Memory (HBM) and a promising recovery in DRAM pricing are anticipated to catalyse substantial revenue and earnings growth.
Micron’s sound financials, robust free cash flow, and a healthy balance sheet afford the company the agility to invest in growth strategies while enhancing shareholder value.
Long-term customer agreements and expanding partnerships in AI effectively reduce volatility and bolster revenue predictability. However, a sluggish recovery in NAND demand may ultimately hinder overall financial performance, and a rising trade conflict remains a critical risk.
Shares of Hamilton Beach Brands have seen a slight decline of -0.9% year-to-date, in stark contrast to the Zacks Household Appliances industry’s downturn of -25.2%.
This microcap entity, with a market capitalisation of $211.06 million, navigated the tariff repercussions of 2025 successfully, as U.S.-China tariff rates have eased.
The company’s primary retailer is resuming normal ordering patterns, and holiday promotions are bolstering volume into Q4 and 2026.
In Q3, gross margin dipped to 21.1%, influenced by a one-time $5 million tariff hit and pricing challenges. However, measures taken in June-August, alongside sourcing strategies in the broader Asia-Pacific region, should reinstate and elevate margins, aided by a shift towards higher-value products.
The health division (HealthBeacon) has realised its first operational profit, showcasing 50% subscription growth in the first nine months of 2025, alongside significant pharmacy partnerships and international software deployments.
Lotus premium appliances are outperforming sales expectations and capturing additional shelf space, which is lifting average selling prices (ASPs). Commercial Sunkist products remain resilient and are expected to grow in 2026.
The company’s balance sheet is flexible, backed by a $66 million revolving credit facility, with initiatives for buybacks/dividends and a projected $10 million in annualised cost reductions, enhancing leverage.
Lastly, Key Tronic has underperformed compared to the Zacks Electronics – Miscellaneous Products sector, recording a decline of -34.8% against the industry’s growth of +27.3%.
With a market cap of $28.34 million, this microcap company faces several challenges, including prolonged revenue declines, delayed program ramp-ups, erosion of backlog, and high debt levels coupled with constrained liquidity, compounded by tariff and geopolitical uncertainties that could impede conversions.
Nevertheless, Key Tronic presents a leveraged reshoring/near-shoring EMS opportunity. Expansion in the U.S. (Springdale, AR) and Vietnam is projected to result in approximately 50% of output being sourced from these regions by fiscal 2026, aligning with OEM demands for resilient supply chains and increasing market share.
Cost-control measures, alongside efficiencies gained from its Mexican operations, are positively influencing sequential gross margins (currently at 8.4%) and reducing the breakeven point.
Vertical integration across PCB, plastics, automation, and testing, as well as new ventures in medical, industrial, and data-processing sectors (which could yield over $20 million annually by fiscal 2026), is enhancing forward visibility.
Other significant reports highlighted today include ConocoPhillips (COP), Edison International (EIX), and Fortive Corp. (FTV).
Featured Insights
Growth in Services to Support Apple (AAPL) Despite Tariff Obstacles
Energising Prospects for Tesla (TSLA) Amid Escalating Capital Requirements
AI Investment and Inventory Uptick to Benefit Micron (MU)
Research Highlights
ConocoPhillips’ (COP) Cost-Effective Shale Assets Support Sustainable Growth
According to Zacks analysts, ConocoPhillips possesses low-cost, high-quality resources in the prolific U.S. shale basins, ensuring a promising production outlook. However, the spectre of declining oil prices raises concerns.
Fortive (FTV) Capitalises on Diverse Portfolio and Margin Growth
The analysts note that Fortive’s varied portfolio spanning automation, digitisation, and electrification enhances resilience. Restructuring efforts alongside the FBS toolkit are positioned favorably for margin expansion.
Solid West Coast Asset Base Underpins Essex Property (ESS) in High Supply Environment
As per Zacks analysts, Essex is poised for growth, buoyed by a solid property foundation in the West Coast market, despite looming concerns regarding high supply levels in certain regions.
Everest Group (EG) Rides on Strong Premiums Amid Rising Costs
According to Zacks, Everest Group is set for growth in its Insurance sector thanks to new business opportunities driving premium increases, though high costs remain a critical issue.
Service Centre Division Propels Applied Industrial (AIT), Yet Cost Challenges Persist
Per Zacks, Applied Industrial’s Service Centre-Based Distribution segment is energised by sales initiatives and a focus on national customer accounts, though high costs present ongoing concerns.
Immunovant Eyes Progress with IMVT-1402, Yet Narrow Pipeline Remains a Challenge
Zacks analysts express optimism regarding IMVT’s advancements in autoimmune programs. However, a limited pipeline alongside heightened competitive pressures in the immunology sector engenders concerns about long-term growth.
RH Advances Through Expansion Efforts Despite Weak Housing Market
According to Zacks, RH’s diverse portfolio and global expansion strategies are generating momentum; however, tariff risks and a depressed U.S. housing market present notable headwinds.
Recent Upgrades
Investments and Renewable Focus Strengthen Edison International (EIX)
Zacks analysts report that Edison International’s commitment to invest $28-$29 billion through 2028 is anticipated to fortify operations and enhance its renewable portfolio.
Crocs (CROX) Reaps Benefits from Innovations and Strategic Partnerships
As per Zacks, Crocs is advancing through strategic collaborations and product innovations that ensure profitable growth, revitalising HEYDUDE’s lineup while focusing on brand integrity.
Kohl’s (KSS) Alliances with Sephora Enhance Beauty Business
According to Zacks analysts, Kohl’s is benefitting from its partnership with Sephora, which achieved a 2% rise in net sales during the third quarter, keeping the company on track to establish a $2 billion beauty division.
Recent Downgrades
Labour Shortages and Supply Chain Issues Challenge Boeing (BA)
According to Zacks analysts, Boeing grapples with labour shortages that may hinder production, inflate costs, and compromise quality. Additionally, supply-chain complications and heightened U.S. import tariffs intensify the pressure.
Landstar (LSTR) Struggles with Sluggish Freight Market
Zacks analysts highlight that Landstar is affected by weak overall volumes attributed to headwinds such as diminishing freight demand, supply-chain complications, and reduced network velocity, negatively impacting its revenue.
Bruker (BRKR) Faces Macroeconomic Headwinds and Competitive Pressures
Concerns are raised by Zacks analysts regarding macroeconomic challenges, including global tariffs and U.S. academic funding obstacles, that might adversely impact Bruker’s operations. Competitive pressures are likely to hinder its growth trajectory.
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