Wednesday, March 19, 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 Shell plc (SHEL), Uber Technologies, Inc. (UBER) and TotalEnergies SE (TTE), as well as two micro-cap stocks Geospace Technologies Corp. (GEOS) and Natural Health Trends Corp. (NHTC). 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 >>> A Brief History of Fed Funds Moves in the 21st Century

Today's Featured Research Reports

Shell’s shares have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+11.3% vs. +6%). The company remains a global leader in liquefied natural gas. 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. 

Shell’s strategic joint venture in the UK North Sea with Equinor enhances its dominance in the region while aligning with high-value objectives. Meanwhile, the company’s strong free cash flow generation and sustained buybacks reinforce shareholder value.

However, the underperformance of its Renewable segment is a matter of concern. Another concern is the sub-100% reserve replacement ratio, indicating challenges in replenishing produced energy. Sensitivity to oil prices and the rise of EVS are other negative factors. Therefore, investors are advised to wait for a better entry point.

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

Shares of Uber have underperformed the Zacks Internet - Services industry over the past six months (-3.2% vs. -1.2%). The company’s underperformance may be due to fears of market saturation and the possibility of self-driving cars eliminating intermediary services. Uber, which dominates the North American ride-sharing market, is likely to increase its focus on suburban markets to drive growth. 

The Zacks analyst remains confident about its ability to combat the challenges with the help of a strong operating model and successful diversification strategy. Even though Uber’s primary business is ride-sharing, it has diversified into food delivery and freight over time. Considering all these factors, investors are advised to wait for a better entry point.

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

TotalEnergies’ shares have declined -5.7% over the past year against the Zacks Oil and Gas - Refining and Marketing industry’s decline of -14.2%. The company’s production might be impacted by security reasons in some regions and it remains exposed to acquisition-related risks as these assets contribute a sizable volume to production. The natural field decline will impact production volumes and lower profits.

Nevertheless, TotalEnergies benefits from contributions coming from startups, acquisitions, well-spread LNG assets and upstream assets located in the new hydrocarbon-producing regions. Multi-energy assets spread across the globe and cost reduction initiatives are benefiting the company. 

TotalEnergies’ free cash flow allows it to increase shareholders value. It is investing in clean power generation and aims to achieve net-zero emissions by 2050. 

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

Shares of Geospace Technologies have underperformed the Zacks Electronics - Measuring Instruments industry over the past year (-42.5% vs. -2.6%). This microcap company with market capitalization of $94.04 million is facing risks which include rising costs, cash flow deterioration and customer concentration.

Nevertheless, Geospace maintains a strong balance sheet with no debt and $22.1 million in cash and investments, plus a $12.1 million undrawn credit facility. Despite a 25.6% year-over-year revenue decline to $37.2 million in first-quarter fiscal 2025, it posted an $8.4 million net income, aided by a 54.1% gross margin. The Smart Water segment grew 72.1% to $7.3 million, showing promise in municipal and multifamily markets. 

Energy Solutions revenues fell 39.2% to $24.3 million, but a $17 million OBX sale and a pending Permanent Reservoir Monitoring (PRM) contract offer potential upside. Intelligent Industrial revenues fell 4.1% to $5.6 million. Rising research and development (R&D) investment (up 35.9% year over year) targets growth in seismic, security and smart water solutions.

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

Natural Health Trends’s shares have underperformed the Zacks Consumer Products - Discretionary industry over the past year (-10.8% vs. +11.7%). This microcap company with market capitalization of $58.37 million is witnessing higher freight and incentive costs pressured margins. Active members declined 4.8% to 30,870, raising concerns about engagement. 

Expansion into Latin America and new product launches aim to drive growth, but reliance on China, rising costs and regulatory risks remain key challenges. Expansion efforts beyond Asia remain limited. Nevertheless, Natural Health Trends saw a 9% sequential and 7% year-over-year sales increase in Hong Kong, which accounts for 82% of revenues. 

Despite this, full-year sales declined 2.2% to $42.9 million due to weakness in Taiwan and North America. The company improved its operating cash flow to $602,000 (before tax payments) but still reported a $3.4 million cash outflow. Cash reserves declined to $43.9 million in 2024 from $56.2 million in 2023. Operating losses narrowed to $1.3 million in 2024 from $1.7 million in 2023.

(You can read the full research report on Natural Health Trends here >>>)

Other noteworthy reports we are featuring today include Public Service Enterprise Group Inc. (PEG), Wheaton Precious Metals Corp. (WPM) and DuPont de Nemours, Inc. (DD).

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

Shell (SHEL) to Benefit from LNG Demand Growth

Uber Continues to Benefit From Delivery Business Amid High Debt

Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)

Featured Reports

Investments Aid Public Service Enterprise (PEG) Amid Poor Solvency
Per the Zacks analyst, Public Service Enterprise makes consistent investment to modernize its infrastructure. Yet its poor financial ratios indicate weak solvency position.

Solid Portfolio Aids Wheaton Precious (WPM) Amid Low Output
Per the Zacks Analyst, Wheaton Precious will gain from its solid portfolio of assets. However, lower production at certain mines will impact 2025 results.

Productivity Actions, New Products Aid DuPont (DD)
While DuPont faces headwinds from weaker pricing and hefty business separation costs, it should gain from productivity improvement actions and new product launches, per the Zacks analyst.

Strong Clientele & Bookings Aids GoDaddy's (GDDY) Prospects
Per the Zacks analyst, GoDaddy benefits from strong bookings primarily driven by strong customer additions and price increases in various domains.

Crysvita & Dojolvi Drive Ultragenyx (RARE), Setbacks a Woe
Per the Zacks Analyst, Ultragenyx's marketed products have been witnessing strong growth year-over-year. However, any pipeline/regulatory setback will hinder the stock's growth potential.

Strong Subscriber Momentum Boosts Iridium's (IRDM) Prospects
Per the Zacks analyst, Iridium is gaining from higher subscribers, driven by the growing adoption of its services in various sectors. Rising deal wins, especially from the U.S. government are a plus.

Kymera (KYMR) Pipeline Advances, Dependence on Partner A Woe
Per the Zacks analyst, Kymera has an innovative pipeline and the recent progress is with its immunology candidates are encouraging. However, the company is dependent on partner Sanofi for funds.

New Upgrades

Deckers' (DECK) HOKA Brand Likely to Fuel Top Line
Per Zacks analyst, HOKA, Deckers' flagship brand, has seen notable growth with market penetration expanding, especially internationally. DECK expects HOKA sales to rise 24% for fiscal 2025.

Fresenius Medical Care's (FMS) Sales Strong Amid Competition
Per the Zacks analyst, sales of Fresenius Medical Care reflected strong growth in 2024 on the back of diverse products and acquisitions. However, stiff competition in the niche markets is a headwind.

Strong Enrollment Growth Aids Adtalem's (ATGE) Prospects
Per the Zacks analyst, Adtalem benefits from solid enrollment growth, strategic initiatives and the efficient execution of its Growth with Purpose strategy.

New Downgrades

High Costs, Stiff Competition Ail Evercore's (EVR) Growth
Per the Zacks analyst, high costs will impede Evercore's bottom-line growth while volatility of institutional AUM will hurt revenues. Stiff competition creates pricing and competitive pressures.

Catastrophe Loss, High Expenses Ail American Financial (AFG)
Per the Zacks analyst, higher losses from catastrophes affect American Financial's underwriting results. Also rising expenses due to higher P&C insurance losses & expenses weigh on margin expansion.

Customer Concentration, High Debt to Hurt Crown Castle (CCI)
Per the Zacks analyst, customer concentration and substantial debt burden are likely to offer bleak prospects for Crown Castle despite steady growth in wireless data consumption.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report

DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report

Geospace Technologies Corporation (GEOS) : Free Stock Analysis Report

Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report

Natural Health Trends Corp. (NHTC): Free Stock Analysis Report

Uber Technologies, Inc. (UBER) : Free Stock Analysis Report

TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report

Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report

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

Zacks Investment Research