Top Research Reports for NextEra Energy, Applied Materials & Petrobras

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>>>

Today's Must Read

NextEra (NEE) Gains from Renewable Focus, Steady Investment

Applied Materials (AMAT) Rides on Strength in AGS Segment

Petrobras (PBR) Aided by Brazil's Pre-Salt Oil Reserves

Featured Reports

High Margin Assets & Cost Management Aid Devon Energy (DVN)
Per the Zacks analyst Devon's strong production from its high margins assets and efficient cost management will drive performance over the long run.

CBRE Group (CBRE) Aided by Outsourcing Business & Buyouts
Per the Zacks Analyst, a healthy outsourcing business, strategic acquisitions and technology investments are likely to drive CBRE Group's growth. However, macroeconomic uncertainties remain a concern.

Reddit (RDDT) Rides on Growing User Engagement, AI Features
Per the Zacks analyst, Reddit is benefiting from strong growth in user engagement driven by AI-powered features, including Reddit Answers.

Robust Public Spending Aids EMCOR (EME), Macro Risks Hurt
Per the Zacks analyst, EMCOR is gaining from robust infrastructure spending trends and contributions from acquisitions. However, ongoing macro risks are hurting prospects.

Continuous Digitalization Aids SoFi (SOFI), Liquidity Low
Per the Zacks Analyst, SoFi is poised for growth due to continuous digitalization in the financial sector, given its focus on online banking and product offerings. Low liquidity is concerning.

Lincoln (LNC) rides on Premium Growth, Elevated Expenses Hurt
Per the Zacks analyst, Lincoln's growing premium is driven by new products and the enhancement of the existing ones, which keep driving its top line. However, escalating expenses remain a concern.

A Solid Product Suite Aids Inogen (INGN) in Stiff Competition
The Zacks analyst is upbeat about Inogen's focus on expanding its product portfolio despite its operation in a highly competitive industry.

New Upgrades

High Rates, Loan Growth Likely to Aid Zions' (ZION) Top Line
Per the Zacks analyst, robust loans, a solid balance sheet and relatively higher rates will support Zions top-line growth. Its capital distribution plans seem sustainable, given the earnings strength.

Strong Demand & Pricing Actions to Drive Greif (GEF)
The Zacks analyst believes that Greif will benefit from its recent pickup in volumes as well as its pricing actions and restructuring activities.

Silicon Motion (SIMO) Rides on Solid Demand, Portfolio Strength
Per the Zacks analyst, growing demand for memory and storage solutions in industrial, automotive, commercial and consumer verticals will likely drive Silicon Motion's top line.

New Downgrades

Declining Backlog & Rising SG&A Expenses Ail Thor (THO)
Per the Zacks analyst, a decline in backlog is likely to impact Thor's sales. Also, an uptick in SG&A expenses as a percentage of sales is likely to exert pressure on profit margins.

Rising Expenses & Stiff Competition Hurt Badger Meter (BMI)
Per the Zacks analyst, Badger Meter's expenses surged in the second quarter driven by SmartCover acquisition, which included amortization of intangible assets. Stiff competition is an added concern.

Etsy (ETSY) Benefits from Marketplace Strength Amid Higher Costs
Per the Zacks analyst, Etsy benefits from accelerating Marketplace revenues driven by Offsite Ads strength. However, rising costs from Offsite Ads shifts & marketing efforts are overhangs.

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

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