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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

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>>>