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The Zacks Analyst Blog Highlights Cisco Systems, NextEra Energy, Moody's, PayPal and Keurig Dr Pepper

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For Immediate Release

Chicago, IL – August 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cisco Systems, Inc. (CSCO - Free Report) , NextEra Energy, Inc. (NEE - Free Report) , Moody's Corp. (MCO - Free Report) , PayPal Holdings, Inc. (PYPL - Free Report) and Keurig Dr Pepper Inc. (KDP - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Cisco Systems, NextEra Energy and Moody's

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 Cisco Systems, Inc., NextEra Energy, Inc. and Moody's Corp. 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 >>>

Shares of Cisco Systems have underperformed the Zacks Tech sector (-10.1% vs. +14.1%) as well as the broader market (-10.1% vs. +11.8% for the S&P 500 index) in the year-to-date period. The company has been suffering from sluggish networking sales, primarily due to lackluster demand from telecommunication and cable services providers, as well as stiff competition.

Cisco's prospects are further challenged in the AI-driven networking space due to stiffening competition aggravated by Hewlett Packard's deal to acquire Juniper. Nevertheless, Cisco's business model has evolved with subscription revenues accounting for more than half of its total revenues. Splunk acquisition enhances its recurring revenue base.

The buyout significantly expands Cisco's portfolio of software-based solutions, contributing more than $4 billion in ARR and makes it one of the largest software companies in the world. The launch of AI-powered Hypershield, which combines security and networking, strengthened Cisco's security portfolio.

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

NextEra Energy shares have outperformed the Zacks Utility - Electric Power industry over the past year (+12.9% vs. +8.9%). The company continues to expand its operations through organic projects and acquisitions. NextEra Energy will add more renewable projects to its portfolio and has nearly 22.6 GW of renewable projects in its backlog.

Efficient cost management is boosting the company's margins. Florida's improving economy boosts the company's subsidiary Florida Power & Light Company's customer base. NextEra Energy has liquidity to meet its debt obligations.

Yet, due to the nature of NextEra Energy's business, it is subject to complex rules and regulations. Risks in operating nuclear power-based generation units, unfavorable weather conditions, and increasing supply costs can adversely impact earnings.

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

Shares of Moody's have outperformed the Zacks Financial - Miscellaneous Services industry over the past three months (+17.0% vs. -1.3%). The company's second-quarter 2024 results reflect a gradual revival of global bond issuances. Its dominant position in the credit rating industry, strategic buyouts and restructuring initiatives to achieve revenue diversification and global footprint expansion are likely to bolster the top line.

A strong balance sheet and earnings strength will likely keep its capital distribution activities sustainable. However, macroeconomic uncertainties and a challenging operating backdrop are concerns and will weigh on its financials.

Elevated expenses, primarily due to investments in franchises and acquisitions, are expected to hamper the company's bottom-line growth. Stiff competition will continue to put some pressure on pricing, which may hurt the company's profitability.

(You can read the full research report on Moody's here >>>)

Other noteworthy reports we are featuring today include PayPal Holdings, Inc. and Keurig Dr Pepper Inc..

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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