Friday, July 31, 2026
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 Microsoft Corp. (MSFT), Palo Alto Networks, Inc. (PANW) and American Express Co. (AXP). 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 opens, attempting 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-Market Trading Up in Final Session of the Week
Today's Featured Research Reports
Microsoft’s shares have outperformed the Zacks Computer - Software industry over the past six months (+7.0% vs. +0.7%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Strong Microsoft 365 Commercial cloud demand has been propelling Productivity and Business Processes revenue growth.
ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services. Azure and other cloud services revenue grew 43% at constant currency (cc) in fiscal Q4, with customer demand continuing to exceed available capacity.
Customer concentration risk remains tied to large OpenAI-related Azure commitments. Microsoft confronts intense competition from AWS and Google Cloud and escalating regulatory scrutiny. Capacity constraints persisting into fiscal 2027 limit revenue potential despite record capital spending.
(You can read the full research report on Microsoft here >>>)
Shares of Palo Alto Networks have outperformed the Zacks Security industry over the past six months (+85.7% vs. +63.7%). The company continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. Platformization is translating into larger commitments, supported by expanding next-generation security ARR and RPO, and management guidance implies continued growth in the fourth quarter of fiscal 2026.
Momentum in Network Security, SASE and Prisma AIRS, along with early execution on the CyberArk and Chronosphere integrations, supports the long-term revenue mix shift toward recurring software and free cash flow.
However, softening IT spending amid macroeconomic headwinds may hurt its near-term prospects. Intense competition and deal scrutiny could still slow bookings at times. Acquisition-related expenses due to larger acquired footprint adds integration risks and could dent margins.
(You can read the full research report on Palo Alto Networks here >>>)
American Express’ shares have outperformed the Zacks Financial - Miscellaneous Services industry over the past year (+16% vs. -22.8%). The company’s second-quarter earnings beat estimates. The company continues to benefit from its premium membership model, younger customer growth, travel and dining engagement, and expansion across digital payments and commercial solutions.
American Express’ closed-loop network, differentiated rewards ecosystem and targeted partnerships support customer loyalty and transaction growth over the long term. Strategic acquisitions, including the proposed TheFork transaction, further enhance its lifestyle ecosystem and international reach. Management raised 2026 revenue growth guidance and maintained its EPS outlook as it continues investing in growth opportunities.
However, elevated customer engagement expenses, ongoing investment needs and sensitivity to credit conditions could limit margin expansion. We maintain a Neutral view on the stock.
(You can read the full research report on American Express here >>>)
Other noteworthy reports we are featuring today include KLA Corp. (KLAC), Thermo Fisher Scientific Inc. (TMO) and Sempra (SRE).
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
Adoption of Cloud & Office 365 Strength Aid Microsoft (MSFT)
Palo Alto (PANW) Rides on Platform Consolidation
Robust Revenues, Cash Position Aid American Express (AXP)
Featured Reports
Strength in End Markets Aid Thermo Fisher (TMO) Amid Stiff Rivalry
The Zacks analyst is impressed with Thermo Fisher's bioproduction and clinical research businesses driving pharma and biotech end-market growth. Fierce competition could curb market share gains.
LNG Expansion & Utility Investments Fuel Sempra (SRE) Growth
According to the Zacks analyst, Sempra benefits from growing global LNG demand, a $65B infrastructure investment plan through 2030, and expanding renewable energy assets, supporting long-term growth.
Growing Commercial HVAC Demand & Portfolio Actions Aid Carrier (CARR)
Per the Zacks analyst, Carrier is benefiting from broadening demand across commercial HVAC, data centers and recovering residential markets. Also, portfolio sharpening actions add to the tailwinds.
Solid Expansion Projects to Aid Teck (TECK) Amid High Costs
Per the Zacks analyst, Teck Resources is poised well to gain its ongoing expansion projects despite the near-term inflationary cost pressures.n
Jakafi, Opzelura and Newer Drugs Fuel Incyte's (INCY) Growth
Per the Zacks analyst, Jakafi, Opzelura and newer oncology drugs continue to drive growth for Incyte. However, the company's dependence on Jakafi in an increasingly competitive market is a headwind.
Fee-based Contracts & Rising Throughput to Aid Antero Midstream (AM)
Per the Zacks analyst, fee-based contracts, rising throughput and regional expansion support AM, while customer concentration, debt and commodity exposure pose cash flow and execution risks.
Hanover Insurance Set to Grow on Solid Specialty and Personal Lines
Per the Zacks analyst, Specialty anchor profitability for Hanover, with a smaller account focus and technology improving mix and speed. Yet cat volatility and competitive property pricing concern.
New Upgrades
Strong Demand for HBM and Advanced Packaging Aids KLA (KLAC)
Per the Zacks analyst, KLA is benefiting from strong demand for high bandwidth memory (HBM) and advanced packaging solutions.
Business Transformation, AUM, Global Presence Support Invesco (IVZ)
Per the Zacks analyst, the business transformation plan, robust AUM, diverse product offerings, strong balance sheet, strategic expansion efforts and global presence will support Invesco's financials.
InterDigital (IDCC) Rides on Licensing Strength and Amazon Deal
Per the Zacks analyst, strong recurring licensing business, along with the Amazon video services and devices deal, is expected to drive InterDigital's top line. Growth in 5G remains a tailwind.
New Downgrades
Stiff Competition and Weak Liquidity are Omnicom's (OMC) Headwinds
Per the Zacks analyst, intense competition from numerous firms continues to pose a headwind to Omnicom's growth. Low liquidity due to continuous investments remains a concern.
Chewy (CHWY) Faces Margin, Consumer Spending Headwinds Ahead
Per the Zacks analyst, Chewy faces near-term margin pressure from higher costs and softer consumer spending, with weaker premiumization and lower product attachment weighing on revenue growth.
Clorox (CLX) Witnesses Cost inflation and Consumer Uncertainty
Per the Zacks analyst, Clorox is facing mounting near-term headwinds from rising costs, global economic pressures and intensifying competition, all of which threaten to weigh on its profitability.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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
Microsoft Corporation (MSFT): Free Stock Analysis Report
Sempra (SRE): Free Stock Analysis Report
American Express Company (AXP): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
KLA Corporation (KLAC): Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).