Tuesday, May 20, 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 Visa Inc. (V), AstraZeneca PLC (AZN) and Shell plc (SHEL), as well as two micro-cap stocks Ocean Power Technologies, Inc. (OPTT) and Wheeler Real Estate Investment Trust, Inc. (WHLR).  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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Today's Featured Research Reports

Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+38.7% vs. +27.5%). The company’s strategic acquisitions and alliances are fostering long-term growth and consistently driving revenues. The company expects net revenues to grow in high-single to low-double digits in fiscal 2025. 

Visa, fueled by persistent increases in payments, cross-border volumes and sustained investments in technology, is witnessing significant profit growth. The ongoing shift to digital payments is advantageous for Visa, with strong domestic volumes supporting its overall performance. A robust cash position enables the company to enhance shareholder value. 

However, Visa’s elevated operating expenses pose margin challenges. We expect adjusted operating expenses to rise 9.5% year over year in fiscal 2025. The company is witnessing a volatile cash volume from the Asia Pacific and U.S. regions. Hence, the stock warrants a cautious stance.

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

Shares of AstraZeneca have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date period (+9% vs. -5%). The company beat Q1 estimates for earnings but missed on sales. Its key drugs like Lynparza, Tagrisso, Imfinzi, and Fasenra should keep driving revenues. 

AstraZeneca’s pipeline is strong, with pivotal late and mid-stage pipeline data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. 

However, potentially lower sales of Lynparza and Farxiga in China, the impact of Part D redesign on U.S. oncology sales and slowing sales of rare disease drugs are expected to hurt the top line in 2025. 

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

Shell’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the year-to-date period (+8% vs. -1.3%). The company, being the largest oil firm in Europe, has solid fundamentals, and the stock looks fairly balanced at the moment. London-based Shell plc remains a global leader in liquefied natural gas (LNG). 

Shell leverages its strong LNG position, bolstered by the acquisition of BG Group, to generate consistent earnings by capitalizing on steady demand for this transitional fuel. Strategic moves like the Equinor JV and Pavilion Energy acquisition also support long-term growth. 

However, a few red flags keep the outlook in check: Q1 revenue missed by $10B, chemical margins remain weak, and reserve replacement continues to lag. Add macro risks, delayed earnings impact from new projects, and ongoing pressure from the energy transition, and the near-term setup feels mixed. For now, investors may prefer to wait for a better entry point before buying Shell shares.

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

Shares of Ocean Power Technologies have outperformed the Zacks Alternative Energy - Other industry over the past year (+202.3% vs. +42.5%). This microcap company with market capitalization of $90.50 million offers strong revenue visibility with a record $7.5 million backlog, driven by global demand for its AI-enabled PowerBuoy and WAM-V platforms across defense and commercial sectors. Financial discipline is evident as cash burn fell 41% and liquidity rose to $10.2 million. 

Ocean Power Technologies shift to a recurring revenue model (DaaS/RaaS) enhances margin potential and customer stickiness. Advanced autonomous systems support long-duration maritime ops with minimal oversight, addressing needs in defense, energy, and environmental monitoring. 

However, risks include persistent losses ($15.1 million YTD), liquidity concerns, high client concentration, and dilution from equity financing. Products remain in early commercialization, and governance issues plus emerging market exposure introduce further uncertainty. OPTT's growth potential is clear, but execution and financial sustainability remain critical watchpoints.

(You can read the full research report on Ocean Power Technologies here >>>)

Wheeler Real Estate Investment’s shares have underperformed the Zacks REIT and Equity Trust - Retail industry over the past year (-99.9% vs. +11.4%). This microcap company with market capitalization of $3.32 million have equity value is pressured by dilution from preferred redemptions and stock splits, and liquidity has tightened, with $489 million in debt and a decline in cash to $19.2 million. 

Legal overhang, weakening NOI, and declining Cedar leasing trends signal operational headwinds. Despite a high implied Series D dividend yield, risks from asset erosion, derivative liabilities and regional concentration constrain long-term upside. Despite ongoing challenges, WHLR’s valuations offer a potential value opportunity relative to its historical norms and industry peers.

Nevertheless, Wheeler Real Estate has improved its balance sheet via $13 million in Series D Preferred redemptions and $18.3 million in asset sales, reducing leverage and generating $5.7 million in net gains. Occupancy remains strong at 93.3%, with leasing spreads reinforcing pricing power.

(You can read the full research report on Wheeler Real Estate Investment here >>>)

Other noteworthy reports we are featuring today include Deere & Company (DE), Roper Technologies, Inc. (ROP) and United Rentals, Inc. (URI).

Director of Research

Sheraz Mian

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>>>