ZACKS·2025-12-18 10:25Core Insights - The Zacks Equity Research team has highlighted key stocks including Alphabet Inc., Tesla, and Sony Group Corp., along with micro-cap stocks Tredegar Corp. and CVD Equipment Corp. [1][2] Alphabet Inc. (GOOGL) - Alphabet's shares have outperformed the Zacks Internet - Services industry over the past year, gaining 63.8% compared to the industry's 59% [4] - The company is experiencing accelerated growth in AI infrastructure, Google Cloud, and Search, with Google Cloud's backlog reaching $155 billion, up 46% sequentially [4] - New Google Cloud Platform customers increased by approximately 34% year-over-year, and 70% of these customers are utilizing Alphabet's AI products [5] - Revenues from products based on Alphabet's generative AI models grew over 200% year-over-year, indicating strong adoption [5] - Search growth is supported by AI features, while YouTube benefits from increased demand for shorts, although competition in cloud computing remains a concern [6] Tesla, Inc. (TSLA) - Tesla's shares have increased by 11.3% over the past year, underperforming the Zacks Automotive - Domestic industry, which gained 13.9% [7] - The company achieved a new delivery record in Q3, largely due to buyers taking advantage of the expiring $7,500 EV tax credit, but Q4 deliveries are expected to decline due to the withdrawal of incentives and increased competition from Chinese EV manufacturers [7] - Automotive margins are under pressure, but the Energy Generation & Storage unit is performing well, and the Supercharger network is expanding [8] - Tesla's robotaxi service is operational in Austin and San Francisco, with driverless tests recently initiated, although significant results from AI and autonomous projects may take years [9] Sony Group Corp. (SONY) - Sony's shares have outperformed the Zacks Audio Video Production industry, rising 26.5% compared to 24.4% for the industry [10] - The company's performance is driven by strong results in Game & Network Services, Music, and Imaging & Sensing Solutions, despite challenges in Pictures and Entertainment, and Technology & Services [10] - Increased engagement in PlayStation and higher streaming in Recorded Music are contributing to growth, while Imaging & Sensing Solutions benefits from higher image sensor sales [11] - The acquisition of STATSports is expected to enhance sports analytics capabilities, although there are concerns about business volatility and a slowdown in the imaging market [12] Tredegar Corp. (TG) - Tredegar's shares have underperformed the Zacks Chemical - Plastic industry, declining 1.6% compared to the industry's 23.8% gain [13] - The company reported a strong Q3 2025 rebound, with Aluminum Extrusions EBITDA surging 172% year-over-year, driven by higher volumes and improved pricing [14] - Net income improved to $7.1 million from a loss of $3.4 million in Q3 2024, supported by stronger operating cash flow [14] - Despite facing challenges such as elevated corporate costs and high customer concentration, Tredegar maintained its market position through pricing flexibility and achieved 34% year-over-year volume growth in specialty products [15] CVD Equipment Corp. (CVV) - CVD Equipment's shares have gained 9.3% over the past six months, slightly underperforming the Zacks Manufacturing - General Industrial industry's gain of 10.5% [16] - The company is positioned for long-term growth in advanced materials for aerospace and EV batteries, supported by differentiated CVD/CVI platforms [16] - Key growth drivers include the adoption of ceramic matrix composites in aerospace and alignment with the shift to 200mm SiC wafers in power electronics [17] - Recent margin improvements and a restructuring plan targeting $2 million in annual cost savings are expected to enhance operating leverage, although risks include order volatility and customer concentration [18]