Top Analyst Reports for Johnson & Johnson, Home Depot and Micron

AltonSci/Tech2025-07-042620

Wednesday, July 2, 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 Johnson & Johnson (JNJ), The Home Depot, Inc. (HD) and Micron Technology, Inc. (MU), as well as two micro-cap stocks Autoscope Technologies Corp. (AATC) and Nova LifeStyle, Inc. (NVFY). 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 >>> ADP Private-Sector Payrolls -33K, Worst in 2+ Years

Today's Featured Research Reports

Johnson & Johnson’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the year-to-date period (+9.4% vs. +0.8%). The company’s Innovative Medicine unit is showing a growth trend, driven by existing products like Darzalex, Tremfya and Erleada and continued uptake of new launches, including Spravato, Carvykti and Tecvayli. J&J is making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline.

However, sales in the MedTech segment have slowed down due to headwinds in Asia-Pacific markets like China and competitive pressure in some categories. The launch of Stelara generics has been eroding the drug’s sales in 2025. Uncertainties around talc lawsuits remain. The potential impact of pharma tariffs in the uncertain economic landscape remains an overhang.

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

Shares of Home Depot have outperformed the Zacks Retail - Home Furnishings industry over the past year (+14.0% vs. +10.5%). 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.

However, HD 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.

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

Micron Technology’s shares have outperformed the Zacks Computer - Integrated Systems industry over the year-to-date period (+42.5% vs. +26.5%). The company’s latest quarterly performance underscores its strategic positioning in the rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to the top-line growth.

The surging demand for HBM and robust DRAM pricing recovery will aid significant revenue and earnings growth in the coming quarters. Its solid financials, positive free cash flow and strong balance sheet provide the flexibility to invest in growth initiatives while enhancing shareholder value. Its long-term customer agreements and expanding AI partnerships reduce volatility and enhance revenue visibility.

However, weakness in NAND pricing due to oversupply conditions and slower-than-expected demand recovery might hurt overall financial performance. An escalating trade war is another concern.

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

Shares of Autoscope Technologies have outperformed the Zacks Technology Services industry over the past year (+41.5% vs. +38.3%). This microcap company with market capitalization of $40.70 million offers a resilient, royalty-driven business model with a 100% gross margin due to fully amortized software costs and outsourced production. Despite a 32% drop in first-quarter 2025 royalty revenues, margins and cash flows remained robust, supported by recurring royalties (97% of revenues).

Cost discipline preserved a 20.3% operating margin and 7 cents EPS amid a 30% revenue decline. The launch of Autoscope Analytics and a strong surge in product revenues (more than 319% year over year) expand TAM and diversify income streams. Capital-light operations enable flexibility and dividends without compromising liquidity or innovation.

Additionally, Autoscope is well-positioned to benefit from U.S. government-funded Smart City and traffic safety programs, leveraging its broad installed base and exclusive distribution with Econolite.

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

Nova LifeStyle’s shares have outperformed the Zacks Furniture industry over the year-to-date period (+109.6% vs. -16.8%). This microcap company with market capitalization of $19.33 million pivot to premium furniture continues to drive margin expansion, with gross margin rising to 46% in first-quarter 2025, supported by a 26% ASP increase offsetting a 12% volume decline, signaling strong premium brand positioning.

Operating loss narrowed significantly due to deep cost cuts, though net losses persist. Revenues rose 10.9% year over year, driven solely by pricing, highlighting volume and diversification concerns. Liquidity remains constrained amid surging supplier prepayments and minimal cash.

Revenue growth remains ASP-led amid shrinking volume and geographic reach. Supply chain fragility and uncertain tariff policy add cost volatility. While valuation appears modest, execution risks, scalability doubts, delisting risks and financial fragility temper optimism around NVFY’s high-margin transformation strategy.

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

Other noteworthy reports we are featuring today include KKR & Co. Inc. (KKR), Constellation Energy Corp. (CEG) and HCA Healthcare, Inc. (HCA).

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>>>

Story Continues

Today's Must Read

J&J's (JNJ) Innovative Medicine Strong, MedTech Slows Down

Home Depot's (HD) Interconnected Strategy to Propel Sales

Supply Stabilization, Higher AI Spending Aid Micron (MU)

Featured Reports

AUM Growth Aids KKR & Co. (KKR) Amid Rising Expenses
Per the Zacks analyst, KKR & Co's diverse investment strategies aid its asset under management (AUM) growth. However, elevated expenses is a concern.

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Focus on Renewable Energy Aid Constellation Energy (CEG)
Per the Zacks analyst, Constellation Energy gains from expansion of renewable portfolio. Its position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output

Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remains a driving factor.

Cost Actions Aid Sherwin-Williams (SHW) Amid Weak Demand
Per the Zacks Analyst, the company's aggressive cost-control initiatives will help counter the impact of weak demand in Europe, slow recovery in China, and higher interest costs.

Venture Global (VG) to Benefit From Key LNG Export Projects
Venture Global is set to benefit from stable revenue growth from major LNG export projects along the Gulf Coast. However, supply-chain issues and debt challenges concern the Zacks analyst.

Dividends & Buybacks Aid Delta (DAL), High Labor Costs Ail
DAL's high labor costs bother the Zacks analyst. Efforts to reward shareholders through dividends & buybacks, however, represent a tailwind.

LEAR's (LEA) Acquisitions Aid Growth, Consumer Concentration a Risk
Per the Zacks analyst, LEA is expanding through acquisitions, partnerships and various innovative products but worry sources from the concentration of customer base in the hands of few companies.

New Upgrades

The Estee Lauder Companies (EL) Gains on Solid Online Sales
Per the Zacks analyst, EL is gaining on efforts to boost online sales. The company is expanding its omnichannel capabilities to aid flexible and convenient shopping options for consumers.

Juniper (JNPR) Benefits From Regulatory Clearance for HPE Merger
Per the Zacks analyst, settlement with the U.S. Department of Justice will likely expedite the Juniper-HPE merger process. The acquisition will drive innovation in the JNPR's AI networking portfolio.

Groupon's (GRPN) Local and Travel Categories Drive Growth
Per the Zacks analyst, Groupon is benefitting from strong momentum across its local and travel categories, particularly in the North American region.

New Downgrades

SONY Plagued by Macro & Geopolitical Headwinds in Key Units
Per the Zacks analyst, Sony's performance is likely to be hurt by the ongoing macro and geopolitical challenges, notably in G&NS, ET&S & I&SS units. Stiff rivalry and FX volatility are concerns.

Macroeconomic Woes, Stiff Competition Hurt Chemed (CHE)
The Zacks analyst is worried about inflation, high logistics and staffing costs weighing on Chemed's margins, with tariffs adding to the risks. Fierce rival pressure could hurt its market share.

High Costs & Macro Woes Ail Norwegian Cruise (NCLH)
Per the Zacks analyst, Norwegian Cruise's performance is being hurt by elevated onboard and other expenses. Also, inflationary pressures and currency woes are concerns.

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