Tuesday, February 11, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard for the Q4 earnings season and new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Exxon Mobil Corporation (XOM) and ServiceNow, Inc. (NOW), as well as a micro-cap stock Willis Lease Finance Corporation (WLFC). 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's open 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 >>> Pre-Markets Take Some Froth Off the Top; Powell to Speak, Q4 Results Continue

Q4 Earnings Season Scorecard

Including all of this morning's releases, we now have Q4 results from 326 S&P 500 members or 65.2% of the index's total membership. Total earnings for these companies are up +13.3% from the same period last year on +5.9% higher revenues, with 77.6% beating EPS estimates and 65.3% beating revenue estimates.

The earnings and revenue growth rates for these 326 index members represents a notable acceleration from the growth pace of other recent periods, though the beats percentages are tracking modestly below historical averages for this same group of companies.

For the current period (2025 Q1), total S&P 500 earnings are currently expected to be up +7.7% from the same period last year on +4.3% higher revenues. Estimates for the period have been coming down since the start of January, with the current +7.7% down from +10.4% at the start of the period.

This is relative more pressure on estimates than we had seen in the comparable period for 2024 Q4, with estimates for 15 of the 16 Zacks sectors down since the start of January.

For more details about the Q4 earnings season and the overall evolving earnings picture, please check out >>>>These 5 Charts Explain the Current Earnings Outlook 

Today's Featured Research Reports

NVIDIA shares have recovered some of its lost ground following the DeepSeek unveiling, but they still remain outstanding performers. The company is benefiting from the strong growth of artificial intelligence (AI), high performance and accelerated computing. The data center end-market business is benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures.

A surge in hyperscale demand and higher sell-ins to partner across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.

Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the autonomous vehicles and other automotive electronics space. The Zacks analyst expects NVIDIA’s revenues to witness a CAGR of 50.5% through fiscal 2025-2027. However, softening IT spending amid macroeconomic headwinds and the U.S.-China tech war remain major concerns.

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

Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+11.2% vs. +6.6%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.  

With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Expansion in low-carbon tech, including Baytown's hydrogen facility, positions it for future growth.

Yet, refining margins are pressured due to global capacity increases, with refining profits softening. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped in the fourth quarter.

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

ServiceNow shares have outperformed the Zacks Computers - IT Services industry over the past year (+30.1% vs. +9.5%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation.

 ServiceNow had 2,109 total customers with more than $1 million in annual contract value (ACV) at the end of the fourth quarter, which represents 14% year-over-year growth in customers. ServiceNow had 19 deals greater than $5 million in net new ACV. It closed 170 deals greater than $1 million net new ACV. Generative Artificial Intelligence (Gen AI) deals continued to gain traction.

ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. Pro Plus AI grew 150% sequentially. It is riding on an expanding partner base and acquisitions. However, NOW is suffering from stiff competition and unfavorable forex.

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

Shares of Willis Lease Finance have outperformed the Zacks Transportation - Equipment and Leasing industry over the past year (+304% vs. -7.8%). This microcap company with market capitalization of $1.32 billion have given excellent returns as global commercial aircraft leasing market is fueled by rising air travel demand and a shift toward leasing over ownership. WLFC is well-positioned to benefit, with 81% of its $2.8 billion portfolio focused on narrowbody engines, critical for short-to-medium haul routes.

In the first nine months of 2024, WLFC achieved record pre-tax earnings of $122.3 million. A new $1 billion credit facility boosts liquidity for growth, while sustainability initiatives position WLFC as a leader in aviation decarbonization. Vertical integration enhances profitability, with maintenance reserve revenues up 41% and spare parts sales surging 223% year over year.

However, headwinds include rising debt costs, supply chain disruptions, high MRO expenses, and reliance on short-term leases, which expose WLFC to cyclicality. Competitive and regulatory pressures further challenge profitability in a rapidly evolving landscape.

(You can read the full research report on Willis Lease Finance here >>>)

Other noteworthy reports we are featuring today include Royal Caribbean Cruises Ltd. (RCL), General Motors Company (GM) and Willis Towers Watson Public Limited Company (WTW).

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>>>