Top Stock Reports for NVIDIA, Caterpillar & KLA

Friday, March 20, 2026

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 NVIDIA Corp. (NVDA), Caterpillar Inc. (CAT) and KLA Corp. (KLAC), as well as a micro-cap stock Frequency Electronics, Inc. (FEIM). 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 >>>


Today's Featured Research Reports

NVIDIA’s shares have outperformed the Zacks Semiconductor - General industry over the past year (+49.3% vs. +48.3%). The company is benefiting from the strong growth of artificial intelligence (AI) and high-performance accelerated computing. The growing demand for generative AI and large language models using graphics processing units (GPUs) based on NVIDIA’s Hopper and Blackwell architectures is aiding data center revenues.

The continued ramp-up of Ada RTX GPU workstations in the ProViz end market, following the normalization of channel inventory, is acting as a tailwind. Collaborations with more than 320 automakers and tier-one suppliers are likely to advance its presence in the autonomous vehicle space.

However, a limited supply of Blackwell GPUs may hinder its ability to meet demand. Rising costs associated with the production of more complex AI systems will hurt margins. The U.S.-China tech war and rising competition from AMD remain major concerns.

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

Shares of Caterpillar have outperformed the Zacks Manufacturing - Construction and Mining industry over the past year (+104.2% vs. +99%). The company continues to post revenue growth, driven by higher volumes across all segments. Caterpillar returned to earnings growth in the fourth quarter of 2025 (albeit a modest 0.4%) after five quarters of declines.

This is a notable achievement given the ongoing tariff headwind. This is expected to persist into 2026, with management projecting a $2.6 billion impact. A record backlog of $51.2 billion should support future sales.

The Construction Industries segment stands to benefit from rising construction activity in the United States and globally, while Resource Industries will gain from steady commodity demand.

In Power & Energy, sustainability initiatives and data-center investments are driving demand. Caterpillar’s focus on building aftermarket parts and service-related revenues (which generate high margins) will aid growth.

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

KLA’s shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+110.5% vs. +52.9%). The company is benefiting from strong demand for leading-edge logic, high-bandwidth memory (HBM) and advanced packaging, which is driving market share growth in the semiconductor industry.

Accelerating investment in AI infrastructure bodes well for KLA’s prospects. Advanced packaging exceeded $950 million in 2025, reflecting 70% year-over-year growth. KLA now expects mid-to-high teens in calendar 2026. Its robust portfolio and its leadership in process control systems are enabling customers to manage increasing design complexity. The services business is performing well.

KLA is well-positioned to capitalize on AI advancements, with AI driving demand for higher-value wafer processing and more complex designs. However, extended U.S. export controls on China and tariff-related uncertainties are concerns.

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

Shares of Frequency Electronics have outperformed the Zacks Instruments - Control industry over the past year (+152.3% vs. +8.2%). This microcap company with a market capitalization of $421.43 million presents a mixed investment profile. Positively, backlog visibility has strengthened, with funded backlog rising to ~$83 million and an additional $45 million in awards. The business mix is improving, with government/defense revenue now ~65% of total, enhancing durability.

Expanding exposure to proliferated satellite constellations and a more balanced two-segment structure (FEI-NY and FEI-Zyfer) support longer-term growth and reduced cyclicality. Multiyear contracts further improve revenue visibility.

However, profitability has deteriorated, with operating income and margins declining due to unfavorable mix shifts and weaker satellite revenues. The high-margin satellite segment has contracted sharply, pressuring earnings quality. Liquidity is also tight, with minimal cash reserves. Despite strong stock performance over the past year, valuation appears elevated versus historical levels.

(You can read the full research report on Frequency Electronics here >>>)

Other noteworthy reports we are featuring today include Ciena Corp. (CIEN), Arthur J. Gallagher & Co. (AJG) and CenterPoint Energy, Inc. (CNP).

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

NVIDIA's (NVDA) Data Center Biz Gains From Growing Adoption of GPUs

Strong Backlog and Volume Recovery Aid Caterpillar (CAT) As Tariff Ail

Strong Demand for HBM and Advanced Packaging Aids KLA (KLAC)

Featured Reports

Improving Fees and Commissions Aid Arthur J. Gallagher (AJG)
Per the Zacks analyst, Arthur J. Gallagher is poised to grow on improving fees and commissions that in turn is driving organic revenues growth. However, rising expenses weighing on margin concerns.

Investments Aid CenterPoint Energy (CNP) Amid Supply Chain Issues
Per the Zacks analyst, CenterPoint Energy makes systematic investments to maintain and upgrade the reliability of its infrastructure. Yet supply chain issues result in delays and increase costs.

Ionis' (IONS) Progress With Wholly-Owned Drugs Encouraging
The Zacks Analyst is encouraged by Ionis' progress with its wholly owned assets, especially Tryngolza. The company's partnerships with Big Pharma provides it with funds to invest in their development.

Comstock (CRK) Banks On High-Quality Haynesville Gas Assets
Per the Zacks analyst, Comstock leverages more than 800,000 net acres in the Haynesville and Bossier shales, unlocking strong drilling economics to capitalize on rising U.S. natural gas demand.

Portfolio Growth, Diversification Aid OneMain (OMF), Higher Costs Ail
Per the Zacks analyst, continued portfolio growth, product diversification, and expansion in auto finance and credit cards will aid OneMain, while higher expenses and weak asset quality are headwinds.

AI Tax Assist Benefits H and R Block (HRB), Competition High
Per the Zacks Analyst, integration of a generative AI-powered technology, AI Tax Assist, in HRB's DIY tax preparation boosts top line. Rising competition is an overhang.

TransMedics' (TMDX) OCS Innovation Drives Growth Amid Legal Scrutiny
Per the Zacks Analyst, TransMedics benefits from its OCS platform and NOP logistics boosting transplant volumes and outcomes, though legal scrutiny and margin pressure remain key risks.

New Upgrades

Ciena (CIEN) Rides on Momentum in Cloud and AI Solutions
Per the Zacks analyst, the rise of cloud and AI technologies has increased bandwidth requirements across global networks, thereby boosting demand for Ciena's solutions.

Fluor (FLR) is Banking on Business Plans and Growing Public Spending
Per the Zacks analyst, Fluor is gaining from strong market opportunities, effective implementation of the Building a Better Future strategy and increased operational leverage.

Strength in Metal Cutting Segment to Aid Kennametal (KMT)
Per the Zacks analyst, Kennametal's Metal Cutting unit is driven by robust general engineering, transportation, aerospace and energy end markets. Its shareholder friendly measures are encouraging.

New Downgrades

McCormick and Company Inc. (MKC) Faces Commodity and Tariff Pressures
Per the Zacks analyst, elevated commodity and tariff pressures pose hurdles for McCormick. The company expects about $50 million in additional tariff-related costs in 2026, which could hurt results.

Boston Beer (SAM) Witnesses Weak Depletions and Shipment Volumes
Per the Zacks analyst, Boston Beer's depletions and shipment volumes have been soft for a while. Depletions and shipments are expected to remain flat to down mid-single digits for 2026.

Tractor Supply (TSCO) Sees Softness in Discretionary Sales
Per the Zacks analyst, Tractor Supply faces soft demand in discretionary categories, with lower units per transaction and seasonal weakness offsetting modest gains in average ticket amid rising costs.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

See This Stock Now for Free >>

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

Caterpillar Inc. (CAT): Free Stock Analysis Report

Ciena Corporation (CIEN): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

KLA Corporation (KLAC): Free Stock Analysis Report

CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report

Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report

Hamilton Beach Brands Holding Company (HBB): Free Stock Analysis Report

Frequency Electronics, Inc. (FEIM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research