Sony Group Corporation

Microsoft’s MSFT gaming division continues to show strength, with Xbox content momentum emerging as a key growth catalyst. In the fourth quarter of fiscal 2025, Xbox content and services revenues rose 13% year over year, driven by strong first-party performance and continued expansion of Xbox Game Pass.
Game Pass, now a cornerstone of Microsoft’s recurring revenue model, generated nearly $5 billion annually and reached 500 million monthly active users as of June 2025. The company also became the top publisher on both Xbox and PlayStation, reflecting its successful multi-platform approach. Recent Game Pass additions like The Outer Worlds 2, PowerWash Simulator 2 and Football Manager 26 continue to enhance subscriber value and engagement.
On the innovation front, Microsoft is expanding its hardware and cloud presence. The company introduced Xbox Cloud Gaming (Beta) in vehicles through partnerships with LG and launched the ROG Xbox Ally handheld series with Asus in October 2025. The lineup includes the standard ROG Xbox Ally powered by an AMD Ryzen Z2 A processor and the more advanced Ally X with a Ryzen AI Z2 Extreme processor, reflecting Microsoft’s push to unify its Xbox and Windows ecosystems.
According to Zacks' model estimates, Microsoft’s gaming division is expected to grow 2.1% in fiscal 2026 and accelerate 14.9% in 2027, reflecting steady long-term momentum. With expanding hardware, robust content and a growing subscription base, Xbox remains central to Microsoft’s next phase of gaming-driven revenue growth.
How Top Rivals Measure Up to Microsoft’s Xbox
Take-Two Interactive TTWO stands out as a premier game publisher known for blockbuster franchises like Grand Theft Auto, Red Dead Redemption and NBA 2K. TTWO thrives on premium content, creative freedom and strong live-service revenues from in-game spending. With GTA VI on the horizon, TTWO’s strategy of focusing on high-impact IPs and strategic acquisitions reinforces its competitive edge across consoles, PC and mobile platforms.
Sony Group Corp. SONY remains Microsoft’s top gaming rival through its PlayStation ecosystem. SONY dominates with premium consoles, acclaimed exclusives like God of War and Spider-Man, and 123 million monthly users. Its tiered PS Plus service combines streaming, classics and new titles. Focused on hardware excellence and first-party content, SONY strengthens its market leadership and brand loyalty across the global gaming landscape.
MSFT’s Share Price Performance, Valuation & Estimates
MSFT shares have gained 23.4% in the year-to-date period, outperforming the Zacks Computer – Software industry’s growth of 20.1%, though slightly lagging behind the broader Zacks Computer and Technology sector’s growth of 23.8%.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Microsoft trades at a premium with a forward 12-month Price/Sales ratio of 11.54X compared with the industry’s 8.54X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $15.40 per share, up by a cent over the past 30 days. The estimate indicates 12.90% year-over-year growth.
Image Source: Zacks Investment Research
Microsoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Xbox Content Strength Continue to Lift MSFT's Gaming Revenues?

Friday, October 17, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including The Home Depot, Inc. (HD), The Boeing Company (BA) and The Progressive Corp. (PGR), as well as two micro-cap stocks Frequency Electronics, Inc. (FEIM) and United Bancorp, Inc. (UBCP). 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 >>> Friday Pre-markets Fighting Out of the Red
Today's Featured Research Reports
Home Depot’s shares have outperformed the Zacks Retail - Home Furnishings industry over the year-to-date period (+1.4% vs. -1.2%). The company’s strong second-quarter fiscal 2025 results and broad-based sales growth. Comps improved, driven by higher-value purchases and steady demand from both Pro and DIY customers.
HD continues to advance its “One Home Depot” strategy, enhancing the interconnected shopping experience through faster delivery, expanded fulfillment centers, and digital innovation. Online sales rose sharply, reflecting investments in AI, logistics, and personalization. Meanwhile, acquisitions like SRS and GMS deepen Pro relationships and broaden specialty capabilities.
However, HD faces softer demand in big-ticket discretionary categories, reflecting consumer caution amid high interest rates. Margin pressure, currency headwinds, tariffs woes and macroeconomic uncertainty also remain key risks.
(You can read the full research report on Home Depot here >>>)
Shares of Boeing have outperformed the Zacks Aerospace - Defense industry over the past year (+36.5% vs. +16.6%). The company remains the largest U.S. commercial aircraft manufacturer. Steadily growing commercial air travel should boost Boeing’s service business unit. Our model also reflects that.
The outlook for Boeing’s defense and space business segment also remains optimistic. The acquisition of Spirit AeroSystems should strengthen Boeing’s long-term revenue prospects.
However, the shortage of labor continues to pose a threat to this aircraft giant. Trade tensions between the United States and China may cause Boeing to be unsuccessful in the timely delivery of its 737 jets and thereby hurt its operational performance. Supply-chain issues and heightened U.S. import tariffs also pose a threat to this stock.
(You can read the full research report on Boeing here >>>)
Progressive’s shares have underperformed the Zacks Insurance - Property and Casualty industry over the past year (-9.3% vs. +2.8%). The company continues to gain on higher premiums, given its compelling product portfolio and strength in Personal auto, contributing about 75% of total premiums.
Rate increases, personal auto application increases, improving retention rates and a strong independent agents' network should drive long-term premium growth and generate steady revenues. Investment in digital transformation should support this strength. Progressive has a reinsurance program to offset some of its losses and a strong financial position overall.
All these positives have led to the overvaluation of its shares, the main factor keeping us on the sidelines. A non-conducive geopolitical landscape and macro uncertainties could reduce demand for autos, having a corresponding negative impact on its growth prospects.
(You can read the full research report on Progressive here >>>)
Shares of Frequency Electronics have outperformed the Zacks Instruments - Control industry over the year-to-date period (+93.6% vs. +11.5%). This microcap company with a market capitalization of $350.78 million offers strong near-term revenue visibility with a $71 million funded backlog, 64% expected to convert within 12 months, supported by stable demand from government and aerospace sectors. Recent defense wins, including a $3.1 million Patriot Missile contract, underscore the strategic relevance of its proprietary oscillators and clocks.
The company maintains solid liquidity with $29.6 million in working capital and positive cash flow, enabling continued R&D investment and share repurchases. Expansion into emerging technologies and vertical integration enhances product differentiation and supply chain resilience.
However, key risks include Q1 FY26 revenue and margin declines due to program delays and early-stage contract mix, rising SG&A tied to growth initiatives, high U.S. government exposure, and increased inventories. Shares are up 94.3% YTD, trading at premium EV/sales and EV/EBITDA multiples.
(You can read the full research report on Frequency Electronics here >>>)
United Bancorp’s shares have outperformed the Zacks Banks - Midwest industry over the year-to-date period (+5.2% vs. -3%). This microcap company with a market capitalization of $76.79 million offers stable earnings growth supported by strategic investments and prudent capital management. Q2 2025 net income rose 10% YoY to $1.9 million, driven by higher net interest income and a stronger margin (3.65%).
Despite higher costs from new initiatives like the Wheeling Banking Center and Unified Mortgage Division, these are expected to drive long-term asset and fee growth. Dividend increases (8.2% YTD) and a 5.2% forward yield enhance shareholder returns. Asset growth (+3.2%) and capital strength (8.9% of average assets) support future expansion.
However, risks include margin compression from rising deposit costs, a growing unrealized loss on long-duration securities ($17.7 million), and rising nonperforming loans. Operating expenses are rising due to structural investments, pressuring efficiency. The stock trades at a discount to peers (P/E 10.47x vs.10.85x sub-industry).
(You can read the full research report on United Bancorp here >>>)
Other noteworthy reports we are featuring today include Sony Group Corp. (SONY), Pfizer Inc. (PFE) and ResMed Inc. (RMD).
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
Pfizer's (PFE) New & Acquired Products Boosting Sales Growth in 2025
Pfizer's key drugs like Vyndaqel, Padcev, Eliquis, and new and newly acquired products are driving top-line growth. Upcoming LOE and Part D redesign impact are key headwinds.
Resmed (RMD) Gains on Solid Masks Sales, Macro Woes Stay
The Zacks analyst is impressed with Resmed's masks and other sales benefitting from ReSupply growth, new patient setups, and VirtuOx acquisition. Rising costs from macroeconomic woes are a concern.
High Gold Prices, Mine Performances Drive B2Gold (BTG) Amid Cost Woes
Per the Zacks analyst, a pickup in mine performances will drive B2Gold's results. The rise in gold prices will also boost results offsetting the headwinds from high costs.
Cost-Control Actions, Acquisitions Aid Element Solutions (ESI)
Per the Zacks analyst, the company will benefit from efforts to control variable operating expenses and synergies of acquisitions amid demand headwinds.
Premier Office Demand Aids Lease Activity for SL Green (SLG)
Per the Zacks Analyst, SLG is well-poised for growth, given tenants' solid demand for premier office spaces with class-apart amenities, with supply pressures easing and people returning to offices.
New Upgrades
Higher Game & Network Services & Music Sales Benefit SONY
Per the Zacks analyst, momentum in the Game & Network Services, Music and Imaging & Sensing Solutions units amid softness in the Pictures and ET&S is aiding Sony's performance.
Decent Comps Run to Fuel Grocery Outlet's (GO) Top Line
Per the Zacks analyst, Grocery Outlet's sharper focus on value, marketing efforts and targeted store initiatives support comparable-store sales growth. Second-quarter comps rose 1.1% year over year.
New Downgrades
Range Resources (RRC) Faces High Debt and Volatility Risks
Per the Zacks analyst, Range Resources grapples with high debt and exposure to volatile commodity prices, raising concerns over its financial flexibility and resilience in shifting market conditions.
Fewer Customers, Partnerships End, No Dividend Hurt Green Dot (GDOT)
Per the Zacks analyst, a decrease in customers, the end of partnerships, and no dividend plans make GDOT shares less attractive to investors.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Home Depot, Boeing & Progressive

For Immediate Release
Chicago, IL – October 13, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. WMT, Sony Group Corp. SONY, Citigroup Inc. C and AgEagle Aerial Systems, Inc. UAVS.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for Walmart, Sony and Citigroup
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 Walmart Inc. (WMT), Sony Group Corp. (SONY), and Citigroup Inc. (C), as well as a micro-cap stock, AgEagle Aerial Systems, Inc. (UAVS). 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.
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 >>> Pre-markets Up Slightly to Start Friday Trading
Today's Featured Research Reports
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+27.1% vs. +26.9%). Walmart is benefiting from the inherent strength of its highly diversified business model. The company's strong omnichannel strategy has boosted traffic at physical stores and digital platforms. Walmart’s focus on improving delivery services is successful, leading to steady grocery market share gains.
However, the company has been witnessing deleveraged operating expenses for a while now. In addition, tariff-related woes remain concerning.
(You can read the full research report on Walmart here >>>)
Shares of Sony have outperformed the Zacks Audio Video Production industry over the past year (+57.3% vs. +53.1%). Momentum in the Game & Network Services (G&NS), Music and Imaging & Sensing Solutions (I&SS) units amid softness in the Pictures and ET&S is aiding Sony’s performance. Higher PlayStation engagement is driving G&NS, while Music is gaining from more streaming in Recorded Music and Publishing.
Solid image sensor sales for mobiles and cameras amid FX woes are aiding I&SS. Anime is key to the Picture unit’s growth, with Crunchyroll adding subscribers. However, stiff competition poses a headwind.
(You can read the full research report on Sony here >>>)
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+45.9% vs. +39.5%). The recent Federal Reserve rate cut, along with expected rate cuts, is likely to aid Citigroup’s net interest income (NII). Its business transformation initiatives, including consumer banking exits and cost reduction efforts, will support long-term growth. The bank’s push into private credit through strategic partnerships is expected to enhance revenue diversification.
Yet, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Its expenses are likely to remain high amid ongoing transformation efforts.
(You can read the full research report on Citigroup here >>>)
Shares of AgEagle Aerial Systems have underperformed the Zacks Agriculture - Operations industry over the past year (-53.4% vs. -5.1%). Liquidity constraints, reliance on Alpha Capital, and dilution risk persist for AgEagle. Non-operational gains can inflate earnings, while contract concentration and limited recurring revenues pose challenges to long-term stability.
However, AgEagle leverages strong regulatory advantages and Blue UAS certifications to target the $186.8B global drone market growing at a 37% CAGR through 2033. As the only FAA Category 3-compliant sUAS maker with BVLOS and EASA C2/C6 approvals, it enjoys a durable moat in defense and regulated commercial sectors.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Walmart, Sony Group, Citigroup and AgEagle Aerial Systems

Friday, October 10, 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 Walmart Inc. (WMT), Sony Group Corp. (SONY), and Citigroup Inc. (C), as well as a micro-cap stock, AgEagle Aerial Systems, Inc. (UAVS). 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.
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 >>> Pre-markets Up Slightly to Start Friday Trading
Today's Featured Research Reports
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+27.1% vs. +26.9%). Walmart is benefiting from the inherent strength of its highly diversified business model. The company's strong omnichannel strategy has boosted traffic at physical stores and digital platforms. Walmart’s focus on improving delivery services is successful, leading to steady grocery market share gains.
However, the company has been witnessing deleveraged operating expenses for a while now. In addition, tariff-related woes remain concerning.
(You can read the full research report on Walmart here >>>)
Shares of Sony have outperformed the Zacks Audio Video Production industry over the past year (+57.3% vs. +53.1%). Momentum in the Game & Network Services (G&NS), Music and Imaging & Sensing Solutions (I&SS) units amid softness in the Pictures and ET&S is aiding Sony’s performance. Higher PlayStation engagement is driving G&NS, while Music is gaining from more streaming in Recorded Music and Publishing.
Solid image sensor sales for mobiles and cameras amid FX woes are aiding I&SS. Anime is key to the Picture unit’s growth, with Crunchyroll adding subscribers. However, stiff competition poses a headwind.
(You can read the full research report on Sony here >>>)
Citigroup’s shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+45.9% vs. +39.5%). The recent Federal Reserve rate cut, along with expected rate cuts, is likely to aid Citigroup’s net interest income (NII). Its business transformation initiatives, including consumer banking exits and cost reduction efforts, will support long-term growth. The bank’s push into private credit through strategic partnerships is expected to enhance revenue diversification.
Yet, the volatile nature of investment banking (IB) and the trading business may pressure fee income. Its expenses are likely to remain high amid ongoing transformation efforts.
(You can read the full research report on Citigroup here >>>)
Shares of AgEagle Aerial Systems have underperformed the Zacks Agriculture - Operations industry over the past year (-53.4% vs. -5.1%). Liquidity constraints, reliance on Alpha Capital, and dilution risk persist for AgEagle. Non-operational gains can inflate earnings, while contract concentration and limited recurring revenues pose challenges to long-term stability.
However, AgEagle leverages strong regulatory advantages and Blue UAS certifications to target the $186.8B global drone market growing at a 37% CAGR through 2033. As the only FAA Category 3-compliant sUAS maker with BVLOS and EASA C2/C6 approvals, it enjoys a durable moat in defense and regulated commercial sectors.
(You can read the full research report on AgEagle Aerial Systems here >>>)
Other noteworthy reports we are featuring today include Sanofi (SNY), JetBlue Airways Corp. (JBLU) and GoDaddy Inc. (GDDY).
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
Dupixent to Remain Sanofi's (SNY) Key Top-Line Driver
The Zacks analyst expects Dupixent to remain Sanofi's key top-line driver as it enjoys strong demand trends. Sanofi has also accelerated its pipeline this year and has been active on the M&A front
Smart Investments & Infrastructure Upgrades Aid OGE Energy (OGE)
Per the Zacks analyst, OGE Energy will benefit from its systematic capital investment to upgrade its infrastructure. Rising customer base will further boost its performance.
Upbeat Air-Travel Demand Lifts JetBlue (JBLU) Amid High Labor Costs
The Zacks analyst is worried about the northward movement in expenses on labor. Rosy air-travel demand is, however, a tailwind.
Public Sector Cloud Migration, Acquisitions Aid Tyler (TYL)
Per the Zacks analyst, Tyler is benefiting from the public sector's ongoing transition from on-premise to scalable cloud-based systems. Also, acquisitions like MyGov and ARInspect are positive.
Strong Volume Aids MarketAxess (MKTX), Growing Costs Ail
Per the Zacks analyst, MarketAxess to gain from trading volume growth supported by increased trading automation. However, rising costs and benefits will trim its margins.
Strength in Connected Devices Unit Aids AXON, High Costs Ail
Per the Zacks analyst, AXON's Connected Devices segment is driven by impressive demand for TASER devices and virtual reality training services. However, high operating costs remain a concern.
Strong Clientele & Bookings Aids GoDaddy's (GDDY) Prospects
Per the Zacks analyst, GoDaddy benefits from strong bookings primarily driven by strong customer additions and price increases in various domains.
New Upgrades
TriMas (TRS) Bets on Strong Momentum in Packaging and Aerospace
Per the Zacks analyst, the Packaging segment is benefiting from demand in personal care, beauty and home care markets, while its Aerospace unit gains from new orders and the GMT Aerospace acquisition.
Omnicell (OMCL) Rides on XT Amplify Success, Strong Solvency
The Zacks analyst is impressed with the strong customer demand of Omnicell's XT Amplify offering, with XTExtend gaining from larger portfolio deals. Robust cash position reflects financial stability.
BJ's Restaurants (BJRI) Rides on Traffic Growth & Menu Innovation
Per the Zacks analyst, ongoing remodeling efforts, menu innovations, traffic growth, new restaurant openings and improving restaurant-level profitability bode well for BJ's Restaurants.
New Downgrades
Civitas' (CIVI) production to get hurt due to Divestiture
The Zacks analyst believes that CIVI's divestiture of DJ Basin assets will hit its production volumes in the second half of the year resulting in lower revenues.
Pilgrim's Pride (PPC) Battles Higher Input Costs & Other Headwinds
Per Zacks analyst, Pilgrim's Pride is witnessing increased commodity chicken input costs, which hurt Prepared Foods' performance. Trade dynamics and evolving consumer behavior add to uncertainty.
North America Segment May Weigh on Hain Celestial's (HAIN) Top Line
Per the Zacks analyst, softness in Hain Celestial's North America segment remains a concern. Net sales tumbled 20.8% year over year in Q4, reflecting ongoing demand challenges in the region.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Walmart, Sony & Citigroup

Sony Group Corporation (SONY) recently partnered with Smart Eye AB, a global pioneer in Interior Sensing AI and Driver Monitoring Systems, to integrate Smart Eye’s advanced sensing and biometric authentication software with Sony’s newly launched IMX775 RGB-IR image sensor. The initiative aims to address key global automotive safety regulations while enabling a new level of secure, personalized in-vehicle experiences.
Synergy stemming from Sony’s advanced hardware with Smart Eye’s AI-driven software delivers comprehensive, real-time insights into driver and passenger behavior. This integration empowers automakers to not only comply with evolving global safety standards but also unlock new personalization and authentication capabilities that transform the in-cabin experience.
The state-of-the-art IMX775 sensor features a 5-megapixel resolution, 2.1 μm pixel size, and the ability to simultaneously capture RGB and infrared (IR) data on a single chip. With a broad 110 dB dynamic range for RGB imaging and exceptional sensitivity at 940 nm near-infrared wavelengths, the IMX775 ensures clear imaging under any lighting scenario. When combined with Smart Eye's sophisticated algorithms, these features improve essential driver monitoring functions, including detecting distraction and drowsiness, as well as tracking occupant posture, seatbelt usage, and body positioning, aligning with evolving regulations, such as the EU’s General Safety Regulation and Euro NCAP’s 2026 standards.
Moreover, Sony’s IMX775 sensor introduces integrated cybersecurity functions that support hardware-level authentication, creating a trusted foundation for secure data exchange. Combined with Smart Eye’s iris and facial recognition software, the result is a chain of trust that extends from the image sensor all the way through the infotainment system. By fusing Sony’s precision-engineered RGB-IR sensing technology with Smart Eye’s intelligent interior monitoring and authentication software, the alliance aims to foster safety, comfort, and digital trust in next-generation vehicles.
Accretive Collaborations Aid SONY Amid Forex Hurdles
Sony has been expanding its business through key acquisitions and partnerships. It allied with Bandai Namco (July 2025) to grow global anime and manga fan communities, and became the largest shareholder in KADOKAWA (December 2024) to boost IP value, co-produce content, and expand media collaborations.
Sony also acquired KinaTrax (October 2024) to enhance sports performance analytics, and Alamo Drafthouse (June 2024) to leverage its cinema chain for content synergies across movies, games, music, and anime. Its 2021 Crunchyroll acquisition strengthened its anime library, now surpassing 17 million paid subscribers, with the market and streaming business expected to grow steadily through 2030.
However, owing to a vast international presence, the company is susceptible to fluctuations in foreign exchange rates, particularly those of yen, the U.S. dollar and euro. As many segments of the company have concentrated operations in specific regions, the currency impact differs from segment to segment. This is expected to hurt its consolidated results. Businesses with significant U.S. dollar- and euro-denominated expenses, such as Game & Network Services and Electronics, are more exposed to forex swings.
In addition, management expects the tariff burden to be felt more strongly in the remainder of the fiscal year, prompting a more conservative outlook. A major North American customer is exploring alternative suppliers (including Korean chipmakers), which could adversely impact Sony’s market position if tariffs alter procurement patterns. While Sony is shifting hardware production for U.S. sales outside China, relocation and supply chain changes may affect costs and require flexible pricing strategies. Considering the potential impact of the tariffs, it projects an operating income of ¥1,330 billion compared with ¥1,400 billion without the tariff impact.
SONY’s Zacks Rank
SONY currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 58.2% in the past year compared with the sub-industry's growth of 54.1%.
Image Source: Zacks Investment Research
Stocks to Consider From the Computer and Technology Space
Some better-ranked stocks from the broader technology space are TaskUs, Inc. (TASK), Cadence Design Systems, Inc. (CDNS) and Genpact Limited (G). TASK sports a Zacks Rank #1 (Strong Buy), while CDNS and G carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TaskUs’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 13.01%. In the last reported quarter, TASK delivered an earnings surprise of 26.47%. Its shares have soared 42.8% in the past year.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.92%. In the last reported quarter, CDNS delivered an earnings surprise of 5.10%. Its shares have surged 30.8% in the past year.
Genpact’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 5.15%. In the last reported quarter, G delivered an earnings surprise of 3.53%. Its shares have inched up 5.6% in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sony, Smart Eye Team Up on Advanced RGB-IR Sensors for In-Vehicle Safety

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
GARMIN LTD (GRMN) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Garmin Ltd. (Garmin) is a Switzerland-based entity. The Company and its subsidiaries offer global positioning system (GPS) navigation and wireless devices and applications. The Company operates through five segments: fitness, outdoor, aviation, marine and auto. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers Outdoor Handhelds, Wearable Devices, Golf Devices, and Dog Tracking and Training/Pet Obedience Devices. Garmin offers various products designed for use in fitness and activity tracking. Companys aviation business segment is a provider of solutions to aircraft manufacturers, existing aircraft owners and operators, as well as military and government customers and serves a range of aircraft, including transport aircraft, business aviation, general aviation, experimental/light sport, helicopters, optionally piloted vehicles, and unmanned aerial vehicles. Company operates worldwide.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
CURRENT QUARTER EARNINGS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of GARMIN LTD
BURLINGTON STORES INC (BURL) is a large-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Burlington Stores, Inc. is an off-price retailer of branded merchandise at everyday low prices. The Companys stores offer an extensive selection of in-season, fashion-focused merchandise, including womens ready-to-wear apparel, menswear, youth apparel, baby, beauty, footwear, accessories, home, toys, gifts and coats. Its broad selection provides a wide range of apparel, accessories and furnishings for all ages. It sells a broad selection of merchandise acquired directly from manufacturers and other suppliers. It has six distribution centers. Its three east coast distribution centers are located in Edgewater Park, New Jersey; Burlington, New Jersey; and Logan, New Jersey. Its three west coast distribution centers are located in San Bernardino, California, Redlands, California, and Riverside, California. These six distribution centers occupy an aggregate of 5,135,000 square feet, and each includes processing, shipping and storage capabilities. It operates in about 1,108 stores.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
CURRENT QUARTER EARNINGS:
PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of BURLINGTON STORES INC
FIVE BELOW INC (FIVE) is a mid-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Five Below, Inc. is a specialty value retailer offering merchandise targeted at the tween and teen demographics. Its assortment of products, including select brands and licensed merchandise. It is engaged in offering a group of products, including leisure, fashion and home, and snacks and seasonal. Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, arts and crafts, and party. Fashion and home include items, such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Snack and seasonal include items, such as seasonal goods, greeting cards, candy and other snacks, and beverages. It also offers its merchandise on the Internet, through its fivebelow.com e-commerce Website, offering home delivery and the option to buy online and pick up in store. It also sells its merchandise through on-demand third-party delivery services to enable its customers to shop online and receive convenient delivery.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FIVE BELOW INC
SONY GROUP CORP (ADR) (SONY) is a large-cap growth stock in the Audio & Video Equipment industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Sony Group Corp is a Japan-based company engaged in the games & network services (G&NS), music, movies, entertainment technology & services (ET&S), imaging & sensing solutions (I&SS) and other businesses. It has seven business segments. G&NS segment is involved in network service business, the manufacture and sale of home video game consoles and software. The Music segment mainly includes music production, music publishing and video media platform businesses. The Movies segment mainly includes film production, television program production and media network businesses. The ET&S field mainly includes the television business, audio, video business, still image, video camera business, smartphone business and Internet-related service business. The I&SS segment mainly includes the image sensor business. The Financial segment is involved in the insurance business and banking business. The Other segment consists of activities such as disc manufacturing business and recording media business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of SONY GROUP CORP (ADR)
LEVI STRAUSS & CO (LEVI) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on Martin Zweig is 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Levi Strauss & Co. is an apparel company. The Company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Levi Strauss Signature, Denizen, Dockers and Beyond Yoga brands. The Company operates through three geographical segments: Americas, Europe, and Asia. It designs, markets and sells directly or through third parties and licensee's products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, footwear, and related accessories for men, women and children around the world. The Companys products are sold in more than 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,400 retail stores and shop-in-shops. Outside the United States, department stores, specialty retailers, franchised or other brand-dedicated stores and shop-in-shops are its primary distribution channels.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:
PASS
Detailed Analysis of LEVI STRAUSS & CO
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 10/7/2025

(RTTNews) - Sony Group Corporation and Sony Corporation announced leadership changes effective April 1, 2026. Kenji Tanaka, currently Senior Vice President of Sony Corporation, will assume the role of President and CEO of Sony Corporation. Meanwhile, Kimio Maki, the current President and Chief executive Officer of Sony Corporation, will transition to the position of Director and Chairman of Sony Corporation on the same date.
Kenji Tanaka has also been appointed Business CEO of Sony Group Corporation, reporting to Hiroki Totoki, President and CEO of Sony Group Corporation effective April 1, 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kenji Tanaka To Succeed Kimio Maki As President And CEO Of Sony Corp. In April 2026

Sony (SONY) ended the recent trading session at $84.28, demonstrating a +1.71% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.3%.
Shares of the electronics and media company have appreciated by 5.62% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.11% and the S&P 500's gain of 3.38%.
The investment community will be closely monitoring the performance of Sony in its forthcoming earnings report. The company's upcoming EPS is projected at $1.06, signifying a 17.19% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $17.42 billion, showing a 4.68% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.60 per share and revenue of $80.11 billion, indicating changes of +2.94% and -5.03%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Sony should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% lower. Currently, Sony is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sony has a Forward P/E ratio of 14.8 right now. This denotes a discount relative to the industry's average Forward P/E of 21.16.
The Audio Video Production industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 22% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SONY in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sony (SONY) Surpasses Market Returns: Some Facts Worth Knowing

Friday, September 19, 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 Costco Wholesale Corp. (COST), Morgan Stanley (MS), and Caterpillar Inc. (CAT).
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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 >>> A Late Summer Reflection on Growth, Inflation and Jobs
Today's Featured Research Reports
Costco’s shares have outperformed the Zacks Retail - Discount Stores industry over the past year (+5.0% vs. +4.0%). Being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. The discount retailer’s key strengths are strategic investments, a customer-centric approach, merchandise initiatives, and an emphasis on membership growth. These factors have been helping it register decent sales and earnings numbers.
A favorable product mix, steady store traffic, pricing power, and strong liquidity position should help Costco keep outperforming.
(You can read the full research report on Costco here >>>)
Shares of Morgan Stanley have outperformed the Zacks Financial - Investment Bank industry over the past year (+55.0% vs. +49.5%). The company's efforts to focus on wealth and asset management operations, its inorganic expansion efforts, strategic alliances, and relatively high interest rates are expected to aid its top line. The performance of the investment banking (IB) business is expected to be driven by a strong pipeline in the near term.
However, operating expenses are likely to stay elevated due to business expansion efforts. The uncertainty of the performance of the capital markets is a key near-term concern for the company.
(You can read the full research report on Morgan Stanley here >>>)
Caterpillar’s shares have outperformed the Zacks Manufacturing - Construction and Mining industry over the past year (+26.5% vs. +25.1%). Caterpillar’s Energy and Transportation segment has shown improved volume and margin performance in the past few quarters, helping offset weaker results in the Resource Industries and Construction Industries segments.
However, higher labor costs and the impact of tariffs on its margins are concerning. Going forward, the Construction Industries segment will gain from increased construction activities in the United States and globally. Resource Industries will be supported by commodity demand.
(You can read the full research report on Caterpillar here >>>)
Other noteworthy reports we are featuring today include CrowdStrike Holdings, Inc. (CRWD), Amgen Inc. (AMGN), and Sony Group Corp. (SONY).
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
Amgen (AMGN) Key & New Drugs Driving Sales in 2025
The Zacks analyst expect Amgen's key products like Evenity, Repatha and Blincyto and new drugs and biosimilars to continue to drive sales offsetting lower revenues from mature products such as Enbrel.
Strong Production & Stable Free Cash Flow Aid CNX Resources (CNX)
Per the Zacks analyst, CNX Resources will benefit from strong production from Marcellus and Utica shales assets. Free cash flow generated in 22 consecutive quarters allowed it to reduce debt.
Phillips 66's (PSX) Diversified Business Model Drives Growth
Per the Zacks analyst, Phillips 66's diversification across multiple sectors should strengthen its cash flows. However, rising regulatory-compliance costs may limit profitability.
Waste Connections (WCN) Market Expands Despite Low Liquidity
Per the Zacks analyst, Waste Connections is well-positioned to capitalize on global waste management market expansion, boosting the top and bottom lines. Low liquidity is concerning.
Coinbase (COIN) Banks on Improving Top Line, Expenses Hurt
Per the Zacks analyst, higher transaction revenues, subscription and services revenues, growth in crypto assets should drive Coinbase revenues.
Strength in Music & G&NS Segments Aids SONY Amid Forex Woes
Per the Zacks analyst, solid demand in the Game & Network Services and Music units is driving Sony's performance. FX volatility and the potential imposition of additional U.S. tariffs pose headwinds.
Strategic Efforts Aid Marriott Vacations (VAC), Costs High
Per the Zacks analyst, Marriott Vacations is likely to benefit from strong leisure demand, digital efforts and Business Modernization program. However, high costs and weak contract sales are concerns.
New Upgrades
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.
Expanding Clientele, Hybrid-Working Solutions Aids Zoom (ZM)
Per the Zacks analyst, Zoom is benefiting from solid adoption of hybrid-working solutions like Zoom Phone and expanding subscriber base driven by the need for digital transformation among enterprises.
Macy's (M) Bold New Chapter to Propel Long-Term Growth
Per the Zacks analyst, Macy's Bold New Chapter strategy is driving growth, as brand strength, luxury focus, and operational modernization boost profitability and long-term positioning.
New Downgrades
Macroeconomic Pressures, Intense Rivalry Ails Bruker (BRKR)
The Zacks analyst is concerned with ongoing macroeconomic issues, including global tariffs and U.S. academic funding headwinds, weighing on Bruker's operations. Fierce competition may dent growth.
Reducing Demand, Weakness in European Business Ail LKQ
Per the Zacks analyst, lower repairable claims are affecting demand for LKQ's replacement parts, which is likely to weigh on its prospects. Near-term weakness in European business is also a concern.
Weak Demand & Margin Pressures Ail International Paper (IP)
The Zacks analyst is concerned that weak demand in end markets, along with higher maintenance outage expense and elevated interest expense, will continue to impact International Paper's results.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Costco, Morgan Stanley & Caterpillar

Microsoft's MSFT gaming division is emerging as a vital pillar of its broader strategy, powered by the growing strength of the Xbox ecosystem. In the fourth quarter of fiscal 2025, gaming arm delivered a 10% year-over-year revenue increase, with Xbox content and services climbing 13%, driven by strong first-party content and Game Pass momentum. Game Pass reached a record of nearly $5 billion in annual revenues, while the company’s gaming platforms surpassed 500 million monthly active users, highlighting the ecosystem’s scale.
Growth has been driven by blockbuster titles like Call of Duty: Black Ops 6, which attracted 50 million players and over 2 billion hours of engagement. The Activision Blizzard acquisition strengthened Microsoft’s content portfolio, giving Game Pass a steady pipeline of high-demand franchises. Additionally, multi-platform releases, including Xbox titles on PlayStation, have positioned the company as the top publisher on both platforms.
Microsoft is also innovating with new monetization paths, from partnerships that bring Xbox Cloud Gaming into vehicles to developing fresh hardware like the Xbox Ally handheld. With nearly 40 new games in development, including highly anticipated releases such as Borderlands 4, Dying Light: The Beast and Trasmoz Legends, the company is reinforcing its ability to sustain long-term engagement and growth across the Xbox ecosystem.
However, headwinds are hard to ignore. Hardware revenues declined, and management guided to mid- to high-single-digit gaming declines for the first quarter of fiscal 2026. Studio closures also raise questions about content depth. Despite near-term pressures, Microsoft’s vast user base, powerful IP and recurring subscription revenues give the Xbox ecosystem a resilient foundation. The Zacks model projects gaming revenues to grow 2.1% year over year in fiscal 2026 and accelerate 15% in fiscal 2027 — supporting sustained long-term growth.
MSFT’s Gaming Platform Competitors
In the gaming arena, Microsoft faces stiff competition from major players like Sony SONY and Nintendo NTDOY.
Sony’s PlayStation platform stands as Microsoft’s closest rival, excelling in high-fidelity gaming and innovative hardware. With Helldivers 2 breaking into Xbox and a rumored PS5 handheld in development, Sony is expanding beyond exclusivity, directly challenging Microsoft’s subscription-led strategy and portable gaming ambitions in a rapidly evolving industry.
Nintendo continues to occupy a distinct niche from Microsoft by focusing on unique, gameplay-first exclusives and hybrid portability rather than raw hardware power. The upcoming Switch 2, with AI-enhanced graphics, competitive pricing and strong demand forecasts, reinforces Nintendo’s strength in delivering cost-effective innovation — challenging Microsoft’s ability to capture mass-market gamers with its high-performance Xbox strategy.
MSFT’s Share Price Performance, Valuation & Estimates
MSFT shares have appreciated 18.8% in the year-to-date period, outperforming the Zacks Computer – Software industry and the Zacks Computer and Technology sector’s growth of 15.3% and 16%, respectively.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock is currently trading at a forward 12-month Price/Sales ratio of 11.22X compared with the industry’s 8.31X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $15.35 per share, reflecting upward revisions of 3 cents over the past 30 days. The estimate indicates 12.54% year-over-year growth.
Image Source: Zacks Investment Research
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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7 Best Stocks for the Next 30 Days
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sony Group Corporation

Price history and volume

Shares 360

Investment risk — high

Investment potential — high

About