Top Analyst Reports for American Express, NextEra Energy & Arista Networks

Monday, June 2, 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 American Express Co. (AXP), NextEra Energy, Inc. (NEE) and Arista Networks Inc (ANET), as well as two micro-cap stocks MIND Technology, Inc. (MIND) and Rave Restaurant Group, Inc. (RAVE). 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 >>>

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You can read today's AWS here >>> Jobs Week Starts with More Trade Tensions

Today's Featured Research Reports

American Express’ shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+24.4% vs. +9.7%). The company’s growth initiatives, like launching new products, reaching new agreements and forging alliances are aiding its card member spending and revenues. 

Consumer spending on travel and entertainment, which carries higher margins, is still resilient. Its focus on Millennials and Gen-Z consumers, who exhibit strong dining preferences, will position AXP for long-term growth. Its revenue, net of interest expense rose 7% year over year in 1Q25. It expects EPS in the range of $15-$15.5 for 2025. 

However, with higher utilization of its cards, costs in the form of card member services and card member rewards are likely to go up. In 1Q25, total expenses rose 10% YoY. Its current debt level induces an increase in interest expenses. As such, the stock warrants a cautious stance.

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

Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the year-to-date period (-2.3% vs. +9.8%). Due to the nature of the company’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. 

Nevertheless, 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 28 GW of renewable projects in backlog. 

Florida’s improving economy is boosting its subsidiary Florida Power & Light Company’s customer base. NextEra has ample liquidity to meet its short-term debt obligations. The company’s consistent investment is helping it to strengthen and expand operations. 

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

Arista Networks’ shares have gained +17.5% over the past year against the Zacks Internet - Software industry’s gain of +35.4%. The company is witnessing solid demand among enterprise customers backed by its multi-domain modern software approach which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack.  

The versatility of Arista’s unified software stack across various use cases including WAN routing, campus and data center infrastructure sets it apart from its competitors. The Arista 2.0 strategy is resonating well with customers with its modern networking platforms being foundational for transformation from silos to centers of data. 

However, Arista continues to derive a substantial portion of its revenue from a limited number of large customers, leading to high customer concentration. Stiff competition in cloud networking solutions is weighing on margins. Increasing operating costs are worrisome.

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

MIND Technology’s shares have outperformed the Zacks Technology Services industry over the six months (+60.2% vs. -3.4%). This microcap company with market capitalization of $8.53 million posted strong FY2025 results, with revenues up 28% to $46.9 million, driven by demand for Seamap products like GunLink and SeaLink. Gross margin rose to 45% on pricing gains and production efficiencies. Net income jumped to $5.1 million due to cost cuts. 

Aftermarket services made up 37% of revenue, offering recurring, high-margin cash flows. MIND retains a leading global position in marine seismic tech with 95% international sales and operations across four countries. A debt-free balance sheet with $3.5 million in cash supports R&D and strategic flexibility. Innovation efforts include expanding SeaLink for defense use and in-house component sourcing. 

However, risks include heavy customer concentration, declining backlog, and rising warranty costs. Limited financial leverage and slow diversification beyond energy exploration also constrain scalability and long-term resilience.

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

Shares of Rave Restaurant have outperformed the Zacks Retail - Restaurants industry over the past year (+46.6% vs. +8.2%). This microcap company with market capitalization of $39.22 million has posted 20 straight profitable quarters, driven by operational efficiency and an asset-light model. In third-quarter fiscal 2025, net income rose 10.4% year over year despite flat revenues, supported by margin expansion and cost discipline. 

It holds $8.7 million in liquidity, remains debt-free and has repurchased shares, reflecting strong capital management. Pizza Inn’s comparable store retail sales grew 2.5%, aided by pricing and reimaging efforts, while Pie Five shows early signs of operational improvement despite declining sales. 

RAVE is also investing in digital ordering and menu innovation to support customer engagement and off-premise traffic. Challenges include reliance on non-royalty income and shrinking store counts. The current valuation suggests potential for investors seeking stable earnings and turnaround upside.

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

Other noteworthy reports we are featuring today include United Parcel Service, Inc. (UPS), Axon Enterprise, Inc. (AXON) and Pembina Pipeline Corp. (PBA).

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

Resilient Card Member Spend Aids AmEx (AXP) Amid High Costs

NextEra (NEE) Gains from Renewable Focus, Steady Investment

Arista (ANET) Rides on Portfolio Strength & Robust Demand

Featured Reports

UPS Banks on Dividends & Buybacks Amid Shipping Volume Woes
The Zacks analyst is impressed with the company's efforts to reward its shareholders. However, shipping volume-related weakness is a concern.

Solid Momentum in Connected Devices Segment to Benefit Axon
Per the Zacks analyst, Axon's Connected Devices segment is driven by robust demand for TASER devices and higher cartridge revenue. Also, accretive acquisitions bode well for the company.

Pembina (PBA) to Gain from Canada's Energy Infrastructure Gap
The Zacks analysts believe that the infrastructure shortfall in Canada presents growth opportunities for Pembina Pipeline, with C$4 billion in projects, but its C$12.5 billion debt raises caution.

Healthy Renter Demand Aids Camden (CPT) Amid Elevated Supply
Per the Zacks Analyst, CPT is poised for growth from the healthy renter demand due to favorable demographics and high homeownership costs. Yet, the elevated supply of rental units in some markets ail.

Restructuring Initiatives Aid Mohawk (MHK) Amid Macro Risks
Per the Zacks analyst, Mohawk is gaining from strategic restructuring initiatives, product innovation and target pricing. However, elevated input costs and ambiguity around tariffs are concerning.

Rezdiffra Sales Boost Madrigal (MDGL), Competition a Woe
Rezdiffra, approved for MASH, has given MDGL a regular source of income. However, competition in the target market is a matter for concern.

QuidelOrtho (QDEL) Gains on Sales Amid Ongoing Solvency Woes
Per the Zacks Analyst, strong product sales and promising lab potential support QuidelOrtho's growth, though competition, solvency concerns, and policy uncertainty pose risks.

New Upgrades

Qualys (QLYS) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Qualys benefits from expanding product capabilities, which helps it gain customers. Increasing marketing efforts are also an upside.

Growing Air Travel Aids Spirit (SPR), Poor Financials Woe
Per the Zacks analyst, growing air travel is boosting the shipset delivery of Spirit AeroSystems' commercial products. However, the stock holds a weak solvency position

PVH Corp's (PVH) Expansion & Other Efforts Seem Promising
Per the Zacks analyst, PVH Corp is boosting its core strengths, and connecting the Calvin Klein and TOMMY HILFIGER brands with consumers. Its PVH+ Plan to drive sustainable growth bodes well.

New Downgrades

Onto Innovation (ONTO) Hit By Tariff Headwinds & Rising Costs
Per the Zacks analyst, the Trump administration's tariffs are adversely affecting Onto Innovation due to the U.S.-based manufacturing of its products, affecting both incoming costs and export costs.

Guess? (GES) Appears Troubled by Higher Operating Costs
Per the Zacks analyst, GUESS? is facing higher costs which is hurting its margin. In Q4, the gross margin contracted 130 basis points to 44.1% due to higher store occupancy costs among others.

Volatile Net Flows, High Intangibles to Hurt Invesco (IVZ)
Per the Zacks analyst, fluctuating net flows amid a tough operating backdrop and significant goodwill and intangible assets on the balance sheet are likely to affect Invesco's financials.

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

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