Monday, July 28, 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 Microsoft Corp. (MSFT), SAP SE (SAP) and Advanced Micro Devices, Inc. (AMD), as well as two micro-cap stocks, PrimeEnergy Resources Corp. (PNRG) and ClearOne, Inc. (CLRO). 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 >>> Big Week for Jobs, Earnings and the Fed

Today's Featured Research Reports

Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+22.3% vs. +20.1%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Office 365 Commercial demand has been propeling Productivity and Business Processes revenue growth. 

ARPU is increasing through E5 and M365 Copilot uptake across key segments. Intelligent Cloud revenues are advancing through Azure AI development and AI Copilot business growth. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. Xbox revenues are benefiting from robust performance across third-party and first-party content offerings.

The Zacks analyst expects fiscal 2025 net sales will increase 13.7% from fiscal 2024. However, elevated operating expenses and Azure investments amid intensifying cloud competition remain concerns for the stakeholders.

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

Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+38.6% vs. +23.8%). The company’s second quarter was driven by strong Cloud ERP growth and tight cost control, coupled with rapid uptake of its Rise with SAP and Grow with SAP solutions. Cloud backlog rose 22% to €18.1 billion. 

AI innovation, streamlined operations and a strong transformation program, with expanding Business AI adoption and productivity gains across all areas, are driving growth. Despite global headwinds, SAP reaffirmed its 2025 outlook, expecting cloud revenues of €21.6-€21.9 billion for 2025, up 26–28% at constant currency. Operating profit grew due to higher cloud revenues, better cloud margins and lower share-based compensation costs. 

However, the weak software license and services business hurt. SAP faces revenue swings due to long sales cycles, complex deals, budget shifts and linked software-service sales

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

AMD’s shares have outperformed the Zacks Computer - Integrated Systems industry over the year-to-date period (+37.8% vs. +28%). The company is benefiting from robust Data Center and Client revenues that fully offset sluggishness in the Gaming and Embedded segments. Data centers are benefiting from solid adoption of fifth-gen EPYC Turin processors and expanding Instinct AI accelerator deployments across hyperscalers and enterprises. 

New product launches, such as the Ryzen 9 9950 X3D and Radeon 9070 series, have been a major growth driver. Gross margin expanded for the fifth consecutive quarter, driven by a more diverse Ryzen mix. AMD’s expanding partner base, including Microsoft, Oracle, DELL, HPE, Lenovo, and Supermicro, has been a key catalyst. The company is also expanding its portfolio through acquisitions. 

However, AMD has been suffering from stiff competition, particularly from NVIDIA. Export controls on certain Instinct GPUs to China posed a regulatory challenge.

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

Shares of PrimeEnergy Resources have outperformed the Zacks Oil and Gas - Exploration and Production - United States industry over the past year (+53.8% vs. -18.7%). This microcap company, with a market capitalization of $293.69 million, has seen first-quarter 2025 performance highlights a compelling investment case driven by diversified volume growth, robust cash flows, and shareholder-friendly capital returns. 

Natural gas and NGL volumes surged 106.6% and 120.4% year over year, respectively, improving the hydrocarbon mix and margin resilience amid oil price volatility. Operating cash flow reached $38.2 million, fully funding $34.7 million in capex with minimal debt and no equity dilution. The company repurchased 47,970 shares, reinforcing per-share value and capital efficiency. 

Asset base expansion to $339.3 million and portfolio optimization (including strategic divestitures) enhance productivity and focus. Despite lower oil prices, revenue grew 16.4% year over year to $50.1 million, driven by volume gains and cost discipline, underscoring operational strength and earnings visibility across cycles.

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

ClearOne’s shares have underperformed the Zacks Communication - Components industry over the past year (-47.3% vs. +39.4%). This microcap company, with a market capitalization of $9.96 million, is facing structural profitability challenges amid collapsing revenues and margin pressure. The 2024 GAAP net loss widened to $8.98 million from $0.56 million in 2023 despite nearly 10% lower operating expenses, signaling that cost cuts cannot offset falling revenues. 

The company’s revenues plunged 39% year over year to $11.39 million, driven by weak microphone sales and the lack of Microsoft Teams certification, a critical hurdle for enterprise adoption. The gross margin fell to 23% from 34% amid inventory write-offs and poor product mix, while inventory rose 17% despite the sales drop, tying up capital and elevating obsolescence risk. 

Operating expenses remain high relative to sales, reflecting poor scalability. Without meaningful top-line recovery or structural changes, ClearOne may face ongoing valuation pressure and funding risk in a tightening capital market.

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

Other noteworthy reports we are featuring today include Boston Scientific Corp. (BSX), Chubb Ltd. (CB) and Ross Stores, Inc. (ROST).

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>>>