Monday, August 4, 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 NextEra Energy, Inc. (NEE), Applied Materials, Inc. (AMAT) and Petróleo Brasileiro S.A. - Petrobras (PBR). 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 >>>

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You can read today's AWS here >>> Pre-markets Back in the Green to Start New Trading Week

Today's Featured Research Reports

Shares of NextEra Energy have gained +0.2% over the year-to-date period against the Zacks Utility - Electric Power industry’s gain of +14.4%. The company’s second-quarter earnings and revenues were better than estimates. NextEra Energy continues to expand its operations through organic projects and acquisitions. 

The company will add more renewable projects to its portfolio and has nearly 30 GW of renewable projects in backlog. Florida’s improving economy is boosting its unit, FPL's customer base. NextEra Energy has ample liquidity to meet its debt obligations. The company’s consistent investment is helping it to strengthen and expand operations. 

Yet, due to the nature of NextEra Energy’s business, it is subject to complex rules and regulations. Risks in operating nuclear power-based generation units, unfavorable weather conditions and increasing supply costs can adversely impact earnings.

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

Applied Materials’ shares have gained +12.4% over the year-to-date period against the Zacks Electronics - Semiconductors industry’s gain of +15.7%. The company is benefiting from strength in the Semiconductor Systems, owing to a rebound in the semiconductor industry, particularly in the foundry logic space. Consistent progress in the services is aiding Applied Global Services’ performance. 

Solid momentum in the subscription and display businesses is a plus. Its strength in IoT, Communications, Auto, Power and Sensors (ICAPS) is likely to continue aiding its position in the semiconductor industry. Its diversified portfolio remains its key growth driver. Our model estimate indicates revenues will witness a CAGR of 5.7% through fiscal 2025-2027. 

However, increasing U.S.-China tensions and export restrictions on semiconductor manufacturing equipment may undermine its near-term growth prospects. Slow memory market recovery and rising operating costs remain other major concerns.

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

Shares of Petrobras have gained +1% over the year-to-date period against the Zacks Oil and Gas - Integrated - International industry’s gain of +5.9%. The company’s state-run oil and natural gas giant Petrobras is riding high on the back of its impressive portfolio, particularly in the country’s pre-salt reservoirs. It is the operator in most of these areas and holds interests in them ranging from 20% to 100%. 

This puts Petrobras in an enviable position to maintain an impressive production growth profile for years to come. Meanwhile, Petrobras is investing in renewable diesel and low-carbon projects, though its energy transition lags behind peers. With significant exposure to the volatile Brazilian real, the company faces currency risk. 

Having said all of this, Petrobras is still reeling under huge debt burden cannot be overlooked. Being a state-controlled entity, Petrobras also faces political and regulatory uncertainties. As such, Petrobras warrants a cautious stance at the moment.

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

Other noteworthy reports we are featuring today include Devon Energy Corp. (DVN), CBRE Group, Inc. (CBRE) and Reddit, Inc. (RDDT).
 

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>>>