Key Stock Updates for Alphabet, Morgan Stanley, and ServiceNow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Source: NASDAQ.COM
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.
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Analyst Views on WM
Wall Street analysts forecast WM stock price to rise
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 237.210
Low
223.00
Averages
247.61
High
266.00
Current: 237.210
Low
223.00
Averages
247.61
High
266.00
About WM
Waste Management, Inc. is a provider of environmental solutions. The Company provides collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers throughout the United States and Canada. Its segments include East Tier, West Tier, Recycling Processing and Sales, WM Renewable Energy, and WM Healthcare Solutions. East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and all of Canada. The West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region and British Columbia, Canada. Recycling Processing and Sales includes the processing and sales of materials collected from residential, commercial, and industrial customers. WM Renewable Energy develops, operates, and promotes projects for the beneficial use of landfill gas. WM Healthcare Solutions includes Regulated Waste and Compliance Services and Secure Information Destruction services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Choices: Clean Harbors vs Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by organic growth and strategic integration of healthcare waste services, showcasing strong market demand and operational capabilities.
- Regulatory Risks and Challenges: Clean Harbors faces significant regulatory oversight, evidenced by a 2026 settlement with the U.S. EPA regarding its Safety-Kleen division, and manages approximately $230.7 million in environmental remediation liabilities, increasing operational risks.
- Market Competition and Investment Choices: Waste Management's acquisition of Stericycle in the medical waste sector presents growth potential but also integration challenges, while Clean Harbors relies on stricter EPA regulations for growth, requiring investors to choose based on their risk tolerance.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its acquisition of Stericycle, which enhanced its competitive position in the market.
- Risk and Regulatory Challenges: Clean Harbors faces stringent oversight from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates operational risks in integrating its Stericycle acquisition, requiring synchronization of billing and operational systems.
- Investor Choice Considerations: For investors seeking stable dividends, Waste Management may be the better option, while growth-focused investors might prefer Clean Harbors, particularly given the growth potential driven by new EPA regulations.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% increase, with a net income of approximately $391 million, demonstrating its profitability in the complex hazardous waste management sector.
- Waste Management Expansion: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its strategic acquisition of Stericycle, enhancing its capabilities in medical waste disposal.
- Regulatory and Risk Challenges: Clean Harbors faces significant regulatory scrutiny from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates the complexities of integrating Stericycle's operations.
- Valuation Comparison: Clean Harbors has a forward P/E ratio of 33.8x compared to Waste Management's 28.2x, indicating differing market valuations that investors should consider based on their risk tolerance and investment goals.
See More
UBS Identifies Attractive Defensive Stock Opportunities
- Market Concentration Analysis: According to UBS, the market experienced strong gains in the first half of the year, primarily driven by a handful of megacap tech companies, leading to historically low correlations across stocks, indicating that investors are avoiding lower-risk companies, which has made many defensive stocks attractive in valuation.
- Valuation Gap in Defensive Stocks: Analyst Sean Burns highlighted that the gap between expensive and cheap defensive stocks is near the widest levels seen since 1990, nearly double the long-run average, with low-risk stocks trading at a market-implied yield of 4.4% compared to just 1.4% for high-risk stocks.
- Quality Defensive Stock Screening: UBS screened for defensive stocks with a market cap of at least $5 billion and a negative correlation to the S&P 500 over the past year, finding that these stocks not only exhibit low volatility but are also trading at discounts, all rated as buys by UBS.
- Individual Stock Performance Expectations: For instance, PepsiCo (PEP) is down about 6% year-to-date but is expected to report strong second-quarter earnings, with its North American food business recovering volume growth after price cuts; McDonald's (MCD) also beat first-quarter earnings expectations and is expected to continue gaining market share globally.
See More
Rising Recession Risks for 2027 Amid Economic Turmoil
- Recession Probability: A J.P. Morgan study indicates a 35% chance of a global recession in 2026, with ongoing concerns about the Middle East and U.S. inflation, prompting investors to prepare for potential economic downturns.
- Kroger's Strong Performance: Kroger reported Q1 2026 revenue of $46.1 billion, up 2.2% year-over-year, with a notable 19% increase in e-commerce sales, demonstrating resilience during economic downturns, while offering a 2.5% dividend yield that attracts investors.
- UnitedHealth Group's Recovery: UnitedHealth Group's Q1 revenue reached $111.7 billion, a 2% increase from last year, and raised its full-year EPS outlook to $17.35, reflecting strong performance in the healthcare insurance market, with a dividend yield of 2.13%.
- WM's Steady Growth: WM's Q1 revenue was $6.22 billion, up 3.5% year-over-year, with EPS rising to $1.79, showcasing the stability of its waste management business amid economic fluctuations, and offering a dividend yield of 1.58%.
See More
Kroger, UnitedHealth, and WM's Recession-Proof Strategies
- Kroger's Market Share: Kroger holds an 8.6% market share in the U.S., second only to Walmart's 21.2%, with Q1 revenue reaching $46.1 billion, a 2.2% increase, highlighting the significance of its low-cost brands amid economic uncertainty.
- UnitedHealth's Performance Recovery: UnitedHealth reported Q1 revenues of $111.7 billion, up 2% year-over-year, and raised its full-year EPS outlook to $17.35, reflecting success in cost control and increased demand for healthcare services.
- WM's Stable Growth: WM achieved Q1 revenue of $6.22 billion, a 3.5% increase, while averaging 19,000 daily routes, demonstrating its ability to maintain stable cash flow and profitability during economic fluctuations.
- Recession-Proof Investment Choices: Despite Kroger's 7% stock decline this year, its 2.5% dividend yield and strong market position make it a preferred choice for recessionary investors, with UnitedHealth and WM also showing solid risk resilience.
See More
Investment Choices: Clean Harbors vs Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by organic growth and strategic integration of healthcare waste services, showcasing strong market demand and operational capabilities.
- Regulatory Risks and Challenges: Clean Harbors faces significant regulatory oversight, evidenced by a 2026 settlement with the U.S. EPA regarding its Safety-Kleen division, and manages approximately $230.7 million in environmental remediation liabilities, increasing operational risks.
- Market Competition and Investment Choices: Waste Management's acquisition of Stericycle in the medical waste sector presents growth potential but also integration challenges, while Clean Harbors relies on stricter EPA regulations for growth, requiring investors to choose based on their risk tolerance.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Financial Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% year-over-year growth, with a net income of approximately $391 million, demonstrating its profitability and stability in the complex hazardous waste management sector.
- Waste Management Expansion Strategy: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its acquisition of Stericycle, which enhanced its competitive position in the market.
- Risk and Regulatory Challenges: Clean Harbors faces stringent oversight from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates operational risks in integrating its Stericycle acquisition, requiring synchronization of billing and operational systems.
- Investor Choice Considerations: For investors seeking stable dividends, Waste Management may be the better option, while growth-focused investors might prefer Clean Harbors, particularly given the growth potential driven by new EPA regulations.
See More
Investment Choice Between Clean Harbors and Waste Management
- Clean Harbors Performance: In FY 2025, Clean Harbors reported nearly $6 billion in revenue, reflecting a 2.4% increase, with a net income of approximately $391 million, demonstrating its profitability in the complex hazardous waste management sector.
- Waste Management Expansion: Waste Management achieved $25.2 billion in revenue for FY 2025, a 14.2% increase, with a net income of about $2.7 billion, driven by its strategic acquisition of Stericycle, enhancing its capabilities in medical waste disposal.
- Regulatory and Risk Challenges: Clean Harbors faces significant regulatory scrutiny from the EPA and manages approximately $230.7 million in environmental remediation liabilities, while Waste Management navigates the complexities of integrating Stericycle's operations.
- Valuation Comparison: Clean Harbors has a forward P/E ratio of 33.8x compared to Waste Management's 28.2x, indicating differing market valuations that investors should consider based on their risk tolerance and investment goals.
See More
UBS Identifies Attractive Defensive Stock Opportunities
- Market Concentration Analysis: According to UBS, the market experienced strong gains in the first half of the year, primarily driven by a handful of megacap tech companies, leading to historically low correlations across stocks, indicating that investors are avoiding lower-risk companies, which has made many defensive stocks attractive in valuation.
- Valuation Gap in Defensive Stocks: Analyst Sean Burns highlighted that the gap between expensive and cheap defensive stocks is near the widest levels seen since 1990, nearly double the long-run average, with low-risk stocks trading at a market-implied yield of 4.4% compared to just 1.4% for high-risk stocks.
- Quality Defensive Stock Screening: UBS screened for defensive stocks with a market cap of at least $5 billion and a negative correlation to the S&P 500 over the past year, finding that these stocks not only exhibit low volatility but are also trading at discounts, all rated as buys by UBS.
- Individual Stock Performance Expectations: For instance, PepsiCo (PEP) is down about 6% year-to-date but is expected to report strong second-quarter earnings, with its North American food business recovering volume growth after price cuts; McDonald's (MCD) also beat first-quarter earnings expectations and is expected to continue gaining market share globally.
See More
Rising Recession Risks for 2027 Amid Economic Turmoil
- Recession Probability: A J.P. Morgan study indicates a 35% chance of a global recession in 2026, with ongoing concerns about the Middle East and U.S. inflation, prompting investors to prepare for potential economic downturns.
- Kroger's Strong Performance: Kroger reported Q1 2026 revenue of $46.1 billion, up 2.2% year-over-year, with a notable 19% increase in e-commerce sales, demonstrating resilience during economic downturns, while offering a 2.5% dividend yield that attracts investors.
- UnitedHealth Group's Recovery: UnitedHealth Group's Q1 revenue reached $111.7 billion, a 2% increase from last year, and raised its full-year EPS outlook to $17.35, reflecting strong performance in the healthcare insurance market, with a dividend yield of 2.13%.
- WM's Steady Growth: WM's Q1 revenue was $6.22 billion, up 3.5% year-over-year, with EPS rising to $1.79, showcasing the stability of its waste management business amid economic fluctuations, and offering a dividend yield of 1.58%.
See More
Kroger, UnitedHealth, and WM's Recession-Proof Strategies
- Kroger's Market Share: Kroger holds an 8.6% market share in the U.S., second only to Walmart's 21.2%, with Q1 revenue reaching $46.1 billion, a 2.2% increase, highlighting the significance of its low-cost brands amid economic uncertainty.
- UnitedHealth's Performance Recovery: UnitedHealth reported Q1 revenues of $111.7 billion, up 2% year-over-year, and raised its full-year EPS outlook to $17.35, reflecting success in cost control and increased demand for healthcare services.
- WM's Stable Growth: WM achieved Q1 revenue of $6.22 billion, a 3.5% increase, while averaging 19,000 daily routes, demonstrating its ability to maintain stable cash flow and profitability during economic fluctuations.
- Recession-Proof Investment Choices: Despite Kroger's 7% stock decline this year, its 2.5% dividend yield and strong market position make it a preferred choice for recessionary investors, with UnitedHealth and WM also showing solid risk resilience.
See More
