Top Stock Reports for Netflix, SAP & Shell

Wednesday, April 16, 2025The 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 Netflix, Inc. (NFLX), SAP SE (SAP) and Shell plc (SHEL), as well as two micro-cap stocks Preformed Line Products Co. (PLPC) and ImmuCell Corp. (ICCC). 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 StreetThe 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 >>> Retail Sales, Q1 Earnings Show Signs of "Pull Forward"Today's Featured Research ReportsNetflix’s shares have outperformed the Zacks Broadcast Radio and Television industry over the past year (+58.1% vs. +45.8%). The company is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention. The launch of first-party ad tech platform in Canada and ones in the remaining ad countries in 2025 signals Netflix's commitment to maximizing this new revenue stream, with ad revenues expected to roughly double year-over-year. Raised revenue guidance for 2025 between $43.5-$44.5 billion reflects improved business fundamentals. However, stiff competition in the streaming space from Apple, Amazon Prime Video and Disney+ is a headwind. NFLX’s leveraged balance sheet and a higher streaming obligation are concerns.(You can read the full research report on Netflix here >>>)Shares of SAP have outperformed the Zacks Computer - Software industry over the past year (+46.4% vs. -2.9%). The company is gaining momentum from growing cloud demand, especially rising adoption of its Rise with SAP and Grow with SAP solutions. Continued strength in the Cloud ERP Suite sales is driving its cloud revenues.Steady growth in Cloud backlog at the end of 2024 is an encouraging development. By prioritizing Business AI and Joule development, the company targets to drive top-line expansion through 2027. Also, its healthy profit and cash flow statements position it for long-term growth. SAP’s revised 2025 outlook succeeds the previous Ambition 2025 strategy. It now expects cloud and software sales in the €33.1-€33.6 billion band, up from the prior forecast of €29.83 billion at cc. However, continued softness in the Software license and support business weighs on its performance. Increasing restructuring costs dampens its margins.(You can read the full research report on SAP here >>>)Shell’s shares have declined -8.1% over the past year against the Zacks Oil and Gas - Integrated - International industry’s decline of -12.7%. The company’s underperformance in 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.Nevertheless, London-based Shell plc remains a global leader in liquefied natural gas. The company 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.(You can read the full research report on Shell here >>>)Shares of Preformed Line Products have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+13.8% vs. -50.3%). This microcap company with market capitalization of $684.92 million has a robust balance sheet—highlighted by $57.2 million in cash, $56.2 million in FCF, and just $18.4 million in debt—supports liquidity, automation investment, and M&A potential. Global diversification (55% of 2024 sales) offsets U.S. market weakness, with strong growth in EMEA, Asia-Pacific, and The Americas. Despite an 11% sales decline, cost discipline preserved an 8.6% pre-tax margin. The energy segment, now 71% of revenue, aligns with grid modernization tailwinds, while PLPC’s R&D infrastructure and 183 global patents support long-term innovation. However, continued weakness in U.S. communications, margin compression, and PLP-USA profitability (66% decline in pre-tax income) remain concerns. High inventory levels and reliance on volatile international markets also pose operational and macro risks, potentially limiting near-term margin recovery and growth.(You can read the full research report on Preformed Line Products here >>>)ImmuCell shares have outperformed the Zacks Medical - Products industry over the past six months (+48.7% vs. -5.7%). This microcap company with market capitalization of $48.42 million is undergoing a strong operational recovery, with fourth quarter and full-year 2024 product sales rising 52% year-over-year, supported by restored and expanded production capacity now scaled to $30 million annually. Gross margin improved to 36.5% in the fourth quarter, and EBITDA turned positive at $1.1 million for the year. The First Defense product line holds a 48% share of the calf-level market, offering unique immunity benefits approved by the USDA, and is gaining traction in premium and organic segments. A $4.4 million at-the-market equity raise strengthened liquidity. However, Re-Tain still lacks FDA approval after over two decades, delaying diversification. Complex manufacturing, distributor concentration, fragile supply chains, and inflationary pressures continue to weigh on margin expansion and pricing flexibility.(You can read the full research report on ImmuCell here >>>)Other noteworthy reports we are featuring today include Intuitive Surgical, Inc. (ISRG), Medtronic plc (MDT) and Arthur J. Gallagher & Co. (AJG).Mark VickerySenior EditorNote: 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 ReadRobust Content Aids Netflix (NFLX) Amid Stiff CompetitionSAP's Cloud Momentum Fuels Strong Top Line GrowthShell (SHEL) to Benefit from LNG Demand GrowthFeatured ReportsIntuitive Surgical's (ISRG) da Vinci System Helps Offset RisksPer the Zacks analyst, growing adoption of Intuitive Surgical's da Vinci system is driving its revenues as well as helping offsetting risks like supply-chain issues and rising costs.Medtronic (MDT) Banks on Cardiovascular Sales, FX Woes WorryThe Zacks analyst is impressed with Medtronic's Cardiac Ablation Solutions business positively boosting growth in the Cardiovascular arm. Yet, adverse currency fluctuations continue to impact sales.Arthur J. Gallagher (AJG) Banks on Buyouts Amid High CostsPer the Zacks analyst, a number of acquisitions have helped Arthur J. Gallagher to enhance its capabilities and drive growth. However, elevated expenses remain an overhang.Acquisitions Aid Teledyne Technologies (TDY) Amid Labor ShortagePer the Zacks analyst, Teledyne Technologies is likely to benefit from profitable strategic acquisitions. Yet labor shortage result in delays and likely impact operating results.Summit (SMMT) Rides on Upbeat Lung Cancer Study DataThe Zacks Analyst is encouraged by Summit's late-stage data which show that treatment with its experimental cancer drug bested Merck's blockbuster drug Keytruda in certain lung cancer patients.AUM, SWP Demand to Aid SEI Investments (SEIC), Costs HighPer the Zacks analyst, solid AUM, diverse products, buyouts, rising demand for the SWP and global presence will likely aid SEI Investments. High expenses and concentrated fee-based revenues are woes.Application Software Unit Aids Roper (ROP), High Debt AilsPer the Zacks analyst, Roper's Application Software segment is driven by strength across its Deltek, Vertafore, PowerPlan and Aderant businesses. However, high debt obligation remains a concern.New UpgradesUpbeat Passenger Volumes Boost Ryanair's (RYAAY) ProspectsThe Zacks analyst is pleased with the buoyant passenger traffic at Ryanair. Efforts to modernize its fleet are also commendable.Paycom Software (PAYC) Benefits From Growing Customer BasePer the Zacks Analyst, Paycom Software is benefiting from its differentiated employee strategy, measurement capabilities and comprehensive product offerings that are helping it win new customers.Central Garden & Pet (CENT) Expands Through E-CommercePer the Zacks analyst, Central Garden & Pet is expanding through e-commerce growth, innovation, and cost efficiencies. The Cost and Simplicity program is streamlining operations.New DowngradesMerger-Related Costs, Low Pricing Ail Smurfit Westrock (SW)Per the Zacks Analyst, merger-related costs and cost inflation continue to weigh on Smurfit Westrock. Lower selling price/mix are also challenging. Strategic Business Plans Aid Adtalem (ATGE), Macro Risks AilPer the Zacks analyst, Adtalem's growth is attributable to its cost-saving initiatives, marketing plans and innovation. However, an inflationary market scenario and macro risks are hurting.Mattel (MAT) Banks On Product Innovations, Macro Woes AIlPer the Zacks analyst, Mattel's focus on new product innovations and Optimizing for Profitable Growth program bode well. However, labor inflation and uncertain macro environment are concerns.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Netflix, Inc. (NFLX): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report SAP SE (SAP): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report ImmuCell Corporation (ICCC): Free Stock Analysis Report Preformed Line Products Company (PLPC): Get Free Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks