Key Stock Updates for Alphabet, Morgan Stanley, and ServiceNow
Zacks Research Daily Highlights
Featured Stocks: Today's report includes research on 16 major stocks, notably Alphabet Inc. (GOOGL), Morgan Stanley (MS), and ServiceNow, Inc. (NOW), along with micro-cap stocks New England Realty Associates Limited Partnership (NEN) and Bridger Aerospace Group Holdings, Inc. (BAER). The micro-cap research is unique in the country.
Market Insights: The 'Ahead of Wall Street' article provides insights into economic releases and their potential impact on market actions, available for free on the Zacks homepage.
Alphabet Inc. (GOOGL)
Performance Overview: GOOGL shares have increased by 11.8% year-to-date, slightly below the Zacks Internet - Services industry’s 13.1% gain. The company is experiencing strong growth in its cloud and search segments.
Cloud Growth: Google Cloud's annual revenue run rate has surpassed $50 billion, driven by advancements in AI infrastructure and Generative AI Solutions. The Circle to Search feature is now active on over 300 million devices, and AI Overviews reach over 2 billion users monthly, increasing global queries by over 10%.
Challenges: Despite growth, GOOGL faces litigation issues and intense competition in the cloud sector.
Morgan Stanley (MS)
Stock Performance: MS shares have outperformed the Zacks Financial - Investment Bank industry, rising 48.7% compared to 43.5% over the past year.
Growth Drivers: The company is focusing on wealth and asset management, with projected investment banking fees and total revenues expected to grow by 3.9% and 3.6%, respectively, in 2025.
Concerns: Operating expenses are anticipated to rise by 7% this year, and uncertainty in capital market performance poses a risk.
ServiceNow, Inc. (NOW)
Market Position: ServiceNow shares have outperformed the Zacks Computers - IT Services industry, with a 7.3% increase compared to a decline of 8.6% in the industry.
Business Growth: The company reported 11 deals exceeding $5 million in net new annual contract value in Q2 2025 and raised its subscription revenue guidance for 2025 to between $12.775 billion and $12.795 billion, indicating a growth rate of 19.5-20%.
Future Outlook: ServiceNow is on track to exceed $15 billion in subscription revenues by 2026, bolstered by AI and machine learning technologies.
New England Realty Associates Limited Partnership (NEN)
Stock Performance: NEN shares have underperformed, declining by 1% compared to the Zacks Real Estate - Operations industry’s 19.2% gain.
Financial Challenges: The company faces a 26% increase in debt to $511.2 million and a rising residential vacancy rate of 2.4%.
Positive Developments: The acquisition of Hill Estates adds 399 units, enhancing cash flows, while rental income grew by 5% in H1 2025 to $41.5 million.
Bridger Aerospace Group Holdings, Inc. (BAER)
Stock Performance: BAER shares have underperformed the Zacks Aerospace - Defense industry, declining 24.1% compared to a 13.3% gain in the industry.
Operational Risks: The company faces cash burn and reliance on low-margin work, with a concentration on federal contracts posing risks.
Growth Potential: BAER operates the only CL-415EAF Scooper fleet in the U.S., benefiting from long-term government contracts and a $46 million sale-leaseback that improves liquidity.
Additional Reports
Other Notable Stocks: The report also highlights Waste Management, Seagate Technology, and Synchrony Financial, focusing on their respective growth strategies and challenges.
Market Trends: The semiconductor market is projected to grow from $452 billion in 2021 to $971 billion by 2028, indicating significant opportunities for companies in this sector.
Investment Recommendations: Zacks Investment Research offers insights into the best stocks for the upcoming month, emphasizing the importance of strategic investments in high-growth sectors.
Trade with 70% Backtested Accuracy
Analyst Views on WM
About WM
About the author
Growth Investment Opportunities Amid Market Volatility
- Carvana Earnings Highlights: Carvana reported a 58% year-over-year revenue growth in Q4, reaching $5.6 billion, although its EBITDA of $511 million fell short of the expected $535.7 million, indicating strong revenue growth potential despite high cost pressures.
- Block Stock Analysis: While Block's stock has stagnated since its pandemic peak, analysts overwhelmingly rate it as a strong buy, with a 12-month price target of $87.27, suggesting a 25% upside from current levels, reflecting confidence in its future growth.
- WM's Market Position: Waste Management holds a significant position in the U.S. waste management market with over 260 landfills and 500 transfer facilities, and as waste generation continues to rise, the company is poised to benefit from increasing demand.
- Long-term Investment Returns: WM has outperformed the S&P 500 over the past decade, and despite recent spending pressures from its entry into the medical waste sector, its 23 consecutive years of per-share dividend growth and ongoing stock buybacks provide a stable return outlook for investors.
WASTE MANAGEMENT INC: RAYMOND JAMES INCREASES TARGET PRICE FROM $238 TO $243
Company Overview: Waste Management Inc. is a leading provider of waste management services in North America.
Stock Price Update: Raymond James has raised the target price for Waste Management's stock to $243 from $238.
Waste Management Reports Mixed Q1 Results with Earnings Beat
- Performance Overview: Waste Management Inc reported Q1 earnings that exceeded expectations, although specific figures were not disclosed, indicating strengths in cost control and operational efficiency, despite sales falling short of market forecasts, reflecting challenges from increased industry competition.
- Sales Shortfall: While earnings were strong, the sales figures did not meet analyst expectations, which could undermine investor confidence in the company's future growth potential, particularly amid heightened economic uncertainty.
- Analyst Target Revisions: Following the earnings report, analysts revised their price targets for Waste Management, reflecting varying market perspectives on the company's future performance, which may lead to stock price volatility.
- Market Reaction: Investor reactions to the mixed results could influence Waste Management's stock price trajectory, especially as the company seeks to enhance sales and market share, making future strategic adjustments critical.
WASTE MANAGEMENT INC: RBC Increases Target Price from $235 to $240
- RBC Price Increase: RBC has raised its price target for StarGate from $235 to $240.
- Market Implications: This adjustment reflects RBC's positive outlook on StarGate's performance in the market.
Waste Management Q1 2026 Earnings Highlights
- Operating EBITDA Growth: Waste Management's operating EBITDA grew nearly 6% in Q1 2026 compared to Q1 2025, indicating the company's ability to maintain profitability while continuously optimizing operational efficiency in a competitive market.
- Significant Free Cash Flow Increase: The first quarter free cash flow reached $920 million, nearly doubling from the same period last year, enabling the company to return approximately $730 million to shareholders through dividends and share repurchases, thereby enhancing investor confidence.
- Renewable Energy Business Doubling: In the renewable energy sector, operating EBITDA more than doubled following the commissioning of seven new natural gas facilities, showcasing the company's proactive positioning in the green energy transition and its market potential.
- Record Safety Performance: Despite challenges from winter weather, Waste Management achieved its best-ever safety record in Q1, with driver and technician turnover at 17.2%, reflecting ongoing improvements in employee management and safety culture.
Waste Management Reports Strong Q1 Earnings, Reaffirms FY 2026 Guidance
- Earnings Beat: Waste Management reported Q1 adjusted earnings of $723 million, or $1.79 per share, significantly up from $637 million and $1.58 per share a year earlier, indicating sustained improvement in profitability.
- Guidance Reaffirmed: The company reaffirmed its FY 2026 revenue guidance of $26.425 billion to $26.625 billion, aligning with the FactSet analyst consensus of $26.5 billion, reflecting management's confidence in future performance.
- Profitability Improvement: Operating EBITDA in the Collection and Disposal segment increased by $154 million, with margins expanding by 190 basis points, primarily due to a favorable price-to-cost spread, showcasing the effectiveness of investments in technology and automation.
- Business Challenges: Despite strong overall performance, Q1 collection and disposal volumes fell by 1.5%, largely due to winter weather and a reduction in lower-margin residential business, highlighting the company's vulnerability to external environmental changes.
Growth Investment Opportunities Amid Market Volatility
- Carvana Earnings Highlights: Carvana reported a 58% year-over-year revenue growth in Q4, reaching $5.6 billion, although its EBITDA of $511 million fell short of the expected $535.7 million, indicating strong revenue growth potential despite high cost pressures.
- Block Stock Analysis: While Block's stock has stagnated since its pandemic peak, analysts overwhelmingly rate it as a strong buy, with a 12-month price target of $87.27, suggesting a 25% upside from current levels, reflecting confidence in its future growth.
- WM's Market Position: Waste Management holds a significant position in the U.S. waste management market with over 260 landfills and 500 transfer facilities, and as waste generation continues to rise, the company is poised to benefit from increasing demand.
- Long-term Investment Returns: WM has outperformed the S&P 500 over the past decade, and despite recent spending pressures from its entry into the medical waste sector, its 23 consecutive years of per-share dividend growth and ongoing stock buybacks provide a stable return outlook for investors.
WASTE MANAGEMENT INC: RAYMOND JAMES INCREASES TARGET PRICE FROM $238 TO $243
Company Overview: Waste Management Inc. is a leading provider of waste management services in North America.
Stock Price Update: Raymond James has raised the target price for Waste Management's stock to $243 from $238.
Waste Management Reports Mixed Q1 Results with Earnings Beat
- Performance Overview: Waste Management Inc reported Q1 earnings that exceeded expectations, although specific figures were not disclosed, indicating strengths in cost control and operational efficiency, despite sales falling short of market forecasts, reflecting challenges from increased industry competition.
- Sales Shortfall: While earnings were strong, the sales figures did not meet analyst expectations, which could undermine investor confidence in the company's future growth potential, particularly amid heightened economic uncertainty.
- Analyst Target Revisions: Following the earnings report, analysts revised their price targets for Waste Management, reflecting varying market perspectives on the company's future performance, which may lead to stock price volatility.
- Market Reaction: Investor reactions to the mixed results could influence Waste Management's stock price trajectory, especially as the company seeks to enhance sales and market share, making future strategic adjustments critical.
WASTE MANAGEMENT INC: RBC Increases Target Price from $235 to $240
- RBC Price Increase: RBC has raised its price target for StarGate from $235 to $240.
- Market Implications: This adjustment reflects RBC's positive outlook on StarGate's performance in the market.
Waste Management Q1 2026 Earnings Highlights
- Operating EBITDA Growth: Waste Management's operating EBITDA grew nearly 6% in Q1 2026 compared to Q1 2025, indicating the company's ability to maintain profitability while continuously optimizing operational efficiency in a competitive market.
- Significant Free Cash Flow Increase: The first quarter free cash flow reached $920 million, nearly doubling from the same period last year, enabling the company to return approximately $730 million to shareholders through dividends and share repurchases, thereby enhancing investor confidence.
- Renewable Energy Business Doubling: In the renewable energy sector, operating EBITDA more than doubled following the commissioning of seven new natural gas facilities, showcasing the company's proactive positioning in the green energy transition and its market potential.
- Record Safety Performance: Despite challenges from winter weather, Waste Management achieved its best-ever safety record in Q1, with driver and technician turnover at 17.2%, reflecting ongoing improvements in employee management and safety culture.
Waste Management Reports Strong Q1 Earnings, Reaffirms FY 2026 Guidance
- Earnings Beat: Waste Management reported Q1 adjusted earnings of $723 million, or $1.79 per share, significantly up from $637 million and $1.58 per share a year earlier, indicating sustained improvement in profitability.
- Guidance Reaffirmed: The company reaffirmed its FY 2026 revenue guidance of $26.425 billion to $26.625 billion, aligning with the FactSet analyst consensus of $26.5 billion, reflecting management's confidence in future performance.
- Profitability Improvement: Operating EBITDA in the Collection and Disposal segment increased by $154 million, with margins expanding by 190 basis points, primarily due to a favorable price-to-cost spread, showcasing the effectiveness of investments in technology and automation.
- Business Challenges: Despite strong overall performance, Q1 collection and disposal volumes fell by 1.5%, largely due to winter weather and a reduction in lower-margin residential business, highlighting the company's vulnerability to external environmental changes.
