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Chicago, IL – July 29, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Shopify SHOP, Arista Networks ANET and Amphenol APH.
Here are highlights from Monday’s Analyst Blog:
What's happening across this Global Week Ahead?
The U.S. President's August 1st self-imposed deadline for trade partners to sign deals or face hefty tariffs is fast approaching, and investors are playing it cool:
· Stocks are near record highs and volatility is low
· Even with a Federal Reserve meeting, and
· U.S. jobs data on the slate, while
· President Trump's beef with Fed Chair Powell shows no signs of easing
(1) Aug. 1st 'Deadline' Carries Threat of Higher U.S. Tariffs: What Happens?
As Trump's August 1st deadline for countries to reach trade deals or face steep tariffs approaches, market optimism is high.
Japan and the U.S. just struck a deal, investors sense Trump will not carry out his 30% tariff threat and Treasury Secretary Scott Bessent thinks the quality of agreements is more important than the timing.
The European Union, meanwhile, said a deal with Washington that averts 30% tariffs was within reach.
On Monday, July 28th, we learned from the Financial Times that "The E.U. and U.S. have agreed a trade deal that will hit most European imports with a 15% tariff and require the bloc to invest hundreds of billions of euros into American energy products and weapons, in order to stave off a trade war with the Trump administration.
Any market reaction to negative headlines could easily be exacerbated by summer-thinned trading and knock world stocks off record highs.
For now, investors and negotiators may hang their hopes on signs of compromise: To quote Mick Jagger, "You can't always get what you want, but if you try sometimes, you'll get what you need."
(2) Drama Builds Between Trump and U.S. Federal Reserve Chair
Mounting pressure from the White House on the Federal Reserve and Chair Jerome Powell could add drama to the U.S. central bank's upcoming meeting.
Investors expect the Fed to hold interest rates steady again on Wednesday. Powell and others have been wary of easing rates too soon without more confirmation that tariffs are causing a revival of inflation.
Trump has denounced Powell for not cutting rates, repeatedly calling for him to resign before his term ends in May 2026, although he has said he would not fire him.
Fed Governor Christopher Waller, a possible candidate to replace Powell, has said the Fed should cut rates at the upcoming meeting.
A crucial view into the economy follows with Friday's July jobs report, which is expected to show employment increased by 102,000, after June's 147,000 rise, according to Reuters' forecasts.
(3) Will the Bank of Japan (BoJ) Hike Rates Soon?
The Bank of Japan has a lot to consider when it meets as a new U.S. trade deal clears some of the economic clouds, while the political scene at home becomes ever hazier.
The BOJ, which concludes a two-day meeting on July 31st, has seen its mission to normalize monetary policy delayed by economic and market turmoil unleashed by Trump's chaotic tariff policies.
The trade pact has reduced economic uncertainty and increased the likelihood that Japan will hit the BOJ's inflation target, Deputy Governor Shinichi Uchida said.
Meanwhile, speculation is growing that fiscal hawk Prime Minister Shigeru Ishiba will step down after a disastrous electoral showing, paving the way for more spendthrift policies.
Economists expect the BOJ to raise its key rate by at least 25 basis points by year-end, and markets price in a better than 50% chance of a move in October.
(4) European Macro Data Will Be a Trader Focus Too
It's a jam-packed data calendar for the euro zone this week, with July flash inflation data and the first estimate of second-quarter growth on the docket on Wednesday.
But neither is likely to move the needle for traders, who are laser-focused on what U.S. tariffs will look like and on how long an ECB policy pause lasts.
Inflation returned to the ECB's 2.0% target in June, but should fall from here. The ECB sees it as low as 1.4% early next year, which has concerned some policymakers.
On the growth side, traders will look for signs of tariff impact. The bloc grew a much stronger-than-expected 0.6% in the first quarter, but that reflected a spike in U.S. imports ahead of tariffs.
Forward-looking business activity data offers a rosy picture, accelerating faster than forecast to an 11-month high in July.
(5) Yields on Canada Bonds Cause Concern. Ditto Canada's 6.9% Unemployment.
As it puzzles over the outlook for a tariff-distorted economy that is making bond investors edgy, the Bank of Canada is widely expected to keep interest rates on hold at 2.75% on July 30th.
The yield on 30-year Canadian bonds, which sets Ottawa's borrowing costs, has zoomed almost 70 bps higher since early April, as the debt underperformed even that of equally fiscally challenged Britain.
Long-dated bonds present investors with most inflation risk, and while Canada's 6.9% jobless rate suggests consumer prices are unlikely to rocket, the BoC has fretted about Canada's retaliatory tariffs on U.S. goods proving inflationary.
Canada's debt markets are increasingly attracting fast-money hedge funds, the BoC noted, opens new tab in May, setting them up for outsized sell-offs of the type Britain has become known for when inflation concerns spike.
Let's examine just the top 3, by market cap, Info Tech stocks currently on our #1 list.
(1) Shopify: This is a $122 a share stock, with a market cap of $158.4B. It is found in the Internet Services industry. I see a Zacks Value score of F, a Zacks Growth score of C, and a Zacks Momentum score of F.
Ottawa, Canada-based Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. Its platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.
Merchants use the company's software to run business across various sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces.
Shopify Dashboard, which is available in more than 20 languages, enables merchants to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics along with reporting from one integrated back office.
Moreover, Shopify hosts a huge database of merchant and customer interactions. Merchants leverage this transactional dataset to get meaningful insight into the sales channel growth prospects and consumer behavioral aspects. This improves their ability to target prospective customers more easily, which drives sales growth.
Apart from the company's own payment solution, payment wallets like Apple Pay, Meta Pay, Amazon Pay and Google Pay is also available to the merchants, which they offer to customers for completing transaction done on the Shopify platform.
In 2024, revenues came in at $8.88 billion. The company generates revenues from two sources: Subscriptions Solutions (26.5% of 2024 revenues) and Merchant Solutions (73.5%). As of Dec. 31, 2024, more than 16,000 apps were available in the Shopify App Store.
Subscription revenue is recognized on a ratable basis over the contractual term. The terms range from monthly, annual or multi-year subscription terms. The company earns revenue based on the services it delivers either directly to merchants or indirectly through resellers.
Shopify generates the majority of merchant solutions revenue from fees that it charges merchants on their customer orders processed through Shopify Payments.
The company also derives merchant solutions revenue relating to Shopify Shipping, Shopify Capital, other transaction services and referral fees, as well as from the sale of Point-of-Sale (POS) hardware.
(2) Arista Networks: This is a $114 a share stock, with a market cap of $143.2B. It is found in the Internet Software industry. I see a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of D.
Santa Clara, CA-based Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next generation data center networks.
Arista uses multiple silicon architectures across its products. At the core of the company's cloud networking solutions is the Linux-based Extensible Operating System (EOS), which was architected to be fully programmable and highly modular.
EOS supports leading cloud and virtualization solutions, including Microsoft System Center, OpenStack and other cloud management frameworks. The company co-authored the Virtual Extensible LAN (VXLAN) protocol specification with VMware and was the first to demonstrate VXLAN integration. It has now expanded VXLAN routing and integration.
In 2015, Arista introduced CloudVision, a network-wide approach for workload orchestration and workflow automation delivering a turnkey solution for cloud networking. In 2019, Arista introduced 10 new 400G platforms. In the Leaf/Spine High Network Radix category, it now offers two new fixed 32 port 400G switches and a 128 port 100G/32 port 400G modular switch. For the Universal Leaf and Spine category of switching, the company introduced R3 series 100G and 400G products supporting up to 2.5M routes on its 7280R3 series fixed and 7500R3 series modular platforms.
Arista introduced a modular family called the 7800R3, a high density 100G and 400G platform supporting up to 460 Tbps of system throughput. Also, it launched the 720XP Series of fixed Power over Ethernet (PoE) leaf switches with 60W PoE, enabling it to offer a complete end-to-end solution for cognitive campus Ethernet as well as the introduction of WiFi-6 wireless Access Points (APs).
The company serves five verticals namely – cloud titans (customers that deploy more than one million servers), cloud specialty providers, service providers, financial services and rest of enterprise. Arista's customers include six of the largest cloud service providers based on annual revenues. In 2024, total revenues were $7 billion.
(3) Amphenol: This is a $105 a share stock, with a market cap of $126.3B. It is found in the Electronics-Connectors industry. I see a Zacks Value score of D, a Zacks Growth score of B, and a Zacks Momentum score of A.
Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable.
Amphenol's manufacturing facilities are generally vertically integrated operations from the initial design stage through final design and manufacturing. The company's manufacturing presence is in more than 30 countries.
Amphenol reported net sales of $15.2 billion in 2024. Effective Jan 1, 2022, Amphenol aligned its businesses into three newly formed reportable business segments: (i) Harsh Environment Solutions, (ii) Communications Solutions and (iii) Interconnect and Sensor Systems.
Harsh Environment Solutions segment designs, manufactures and markets a broad range of ruggedized interconnect products, including connectors and interconnect systems, printed circuits and printed circuit assemblies and other products.
Communications Solutions segment designs, manufactures and markets a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other products, together with antennas.
Interconnect and Sensor Systems segment designs, manufactures and markets a broad range of sensors, sensor-based systems, connectors and value-add interconnect systems.
Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices, and Mobile Networks are the primary end markets served by the company.
Amphenol's primary competitors include Carlisle, Commscope, Delphi, Sensata, TE Connectivity, 3M, among others.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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