Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

Компания Shell показывает смешанную картину по фундаментальным метрикам. Мультипликаторы, такие как P/E, P/B и P/S, находятся ниже медианных значений по отрасли, что может свидетельствовать о недооцененности. Тем не менее, показатели рентабельности, такие как ROE и ROA, значительно ниже медианы, что указывает на недостаточную эффективность использования капитала. Долговая нагрузка оценивается положительно с debt/equity на уровне 0.34, что ниже медианы, однако рост долгосрочных обязательств вызывает опасения. Дивидендная доходность на уровне 0.93% остается стабильной, но не демонстрирует роста, что может не удовлетворять инвесторов. Выручка компании значительно выше медианы, что является позитивным фактором, однако маржи (gross, operating, net) ниже медианных значений, что может указывать на проблемы с контролем затрат. В целом, несмотря на сильные финансовые результаты и низкие мультипликаторы, слабые стороны по маржам и рентабельности снижают привлекательность акций компании для инвесторов.

Shell PLC

Chevron Corporation’s CVX stock has surged over the past three months, reflecting renewed strength in the energy sector as crude prices spike amid escalating geopolitical tensions in the Middle East. Shares of the integrated major have climbed more than 30% during this period, recently touching an all-time high near $200. The rally has coincided with a dramatic surge in global oil prices after military conflict in the region disrupted supply flows through the Strait of Hormuz, one of the world’s most critical maritime energy chokepoints.
Brent crude has jumped to just above $100 per barrel from around $60 earlier this year, while WTI has climbed close to $95. With energy markets experiencing one of the most significant supply shocks in decades, investors are now asking whether Chevron’s rally still offers upside — or if much of the optimism is already reflected in the stock price.
Oil Price Shock Fuels Energy Sector Rally
The recent surge in crude prices stems from escalating geopolitical tensions following U.S.–Israeli strikes against Iran, which triggered a broader regional conflict. The situation quickly evolved into a major supply disruption, with tanker traffic through the Strait of Hormuz — normally responsible for transporting roughly 20 million barrels of oil per day — severely curtailed. Several vessels have been attacked near Iran’s coast, and shipping activity in the area has slowed dramatically.
The International Energy Agency estimates that about 7.5% of the global oil supply has been disrupted due to the conflict. In response, the IEA coordinated the largest strategic oil release in history, agreeing to release roughly 400 million barrels from emergency reserves worldwide. The United States separately authorized the release of 172 million barrels from its Strategic Petroleum Reserve.
Even with these releases, oil prices remain high because markets are concerned that the disruption could last for some time. Crude prices briefly climbed to about $119 per barrel earlier in the week before easing slightly. If the conflict continues, analysts believe that prices could rise toward $120 again, although higher prices may eventually reduce demand.
CVX’s Strong Price Performance Mirrors Peers XOM and SHEL
Chevron’s recent rally reflects the broader strength across major energy producers. Over the past three months, CVX shares have climbed 31.4%, reaching record levels of $198.88. Larger rival ExxonMobil XOM has delivered a similar performance, also gaining more than 30% during the same period. Meanwhile, Shell plc SHEL has advanced about 22.3%.
3-Month Price Perfprmance
Image Source: Zacks Investment Research
The surge highlights how integrated oil majors tend to benefit when energy markets tighten. Higher crude prices typically boost upstream profitability, which drives earnings across companies such as ExxonMobil, Shell and Chevron. Investor sentiment toward the sector improved significantly as geopolitical risk pushed oil prices higher.
At the same time, Chevron’s valuation has expanded alongside its share price. The stock now trades at a noticeably higher forward earnings multiple than both ExxonMobil and Shell. While Chevron’s strong profitability and operational efficiency help justify some premium, the higher multiple suggests that a substantial portion of the sector’s bullish outlook may already be reflected in the current price.
CVX Earnings Outlook Backed by Oil, Long-Term Growth Mixed
Chevron’s earnings performance has been consistently strong in recent quarters. The company has beaten the Zacks Consensus Estimate in each of the past four quarters, delivering an average earnings surprise of 5.6%. This track record highlights Chevron’s operational discipline and the benefits of its diversified integrated model.
Image Source: Zacks Investment Research
High crude prices could further strengthen earnings in the near term. If oil prices remain elevated around the current levels, analysts estimate that Chevron could generate more than $8 per share in annual earnings. Strong upstream margins, combined with steady refining and distribution operations, typically allow integrated producers like Chevron, ExxonMobil and Shell to generate solid cash flow during periods of elevated energy prices.
However, consensus forecasts suggest that the earnings cycle could moderate in the coming year. The Zacks Consensus Estimate projects Chevron’s earnings per share to decline 8.6% in 2026 compared with the prior year. The expected decline reflects the possibility that oil prices eventually stabilize as strategic reserves are released and global supply gradually adjusts.
Looking further ahead, the outlook improves significantly. Earnings are projected to rebound by about 30% in 2027, indicating that Chevron’s long-term profitability still depends heavily on commodity price cycles and production growth.
Image Source: Zacks Investment Research
Chevron Benefits From Strategic Growth and Integrated Model
Chevron’s long-term growth story remains supported by major strategic investments and a diversified operating structure. One of the most significant developments is the company’s acquisition of Hess, which expands Chevron’s asset base and strengthens its upstream portfolio. The deal adds exposure to Guyana’s highly productive Stabroek Block, one of the most attractive new oil basins globally.
Access to high-quality reserves is critical in the energy industry, and the Hess acquisition improves Chevron’s long-term production outlook. It also enhances the company’s scale and resource depth, positioning it to compete effectively with other global energy giants such as ExxonMobil and Shell.
Chevron’s integrated business model also provides a degree of stability during commodity cycles. Unlike pure exploration companies that rely heavily on crude prices, Chevron operates across the entire energy value chain — from exploration and production to refining and fuel distribution. This diversification helps balance earnings during periods of volatility, allowing downstream segments to partially offset fluctuations in upstream profitability.
In addition, Chevron remains attractive to income-focused investors due to its consistent dividend payments and global scale. Reliable shareholder returns often provide a stable base of institutional demand for the stock, even during periods of market uncertainty.
Conclusion
Chevron’s recent rally reflects strong tailwinds from surging oil prices and heightened geopolitical risk in global energy markets. The company’s consistent earnings execution, integrated business model and strategic investments — particularly the Hess acquisition — continue to support its long-term growth prospects. At the same time, the stock now trades at a premium valuation compared with peers ExxonMobil and Shell, while consensus estimates still call for an earnings decline in 2026 before a potential rebound later in the cycle.
With much of the current oil-price optimism already reflected in Chevron’s share price, the risk-reward balance appears relatively neutral at the present levels. As a result, CVX stock currently carries a Zacks Rank #3 (Hold), suggesting that investors may want to wait for either a pullback or clearer catalysts before building new positions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chevron Near $200 While Oil Tops $100: Does CVX Merit a Buy?

Chevron Corporation CVX has reaffirmed its commitment to responsible offshore development through its participation in the latest lease sale in the Gulf of Mexico. The auction, conducted by the U.S. Bureau of Ocean Energy Management, attracted several major industry players, including BP p.l.c. BP, Shell plc SHEL, Woodside Energy, LLOG Exploration and Anadarko, which placed high bids totaling $46.98 million in the Gulf of Mexico drilling rights sale held on Wednesday.
Chevron submitted successful bids for three offshore blocks, with total high bids nearing $11.5 million. The company’s participation highlights its continued focus on high-quality deepwater opportunities that support long-term energy supply and value creation.
A Strategic Basin for Chevron
For Chevron, the Gulf of Mexico remains one of the most important regions in its global portfolio. The basin offers large-scale resources along with some of the lowest carbon-intensity barrels in the company’s upstream operations.
Technological advances, improved project execution and strong safety performance have strengthened the competitiveness of deepwater development. These factors allow Chevron to efficiently bring new resources online while maintaining disciplined capital investment.
The region also benefits from a more predictable offshore leasing framework and competitive royalty structures, providing the regulatory clarity needed for long-term offshore investments.
Deepwater Resources Remain Essential
Although onshore shale production has grown rapidly in recent years, deepwater resources continue to play a critical role in supporting U.S. energy supply. Large offshore discoveries typically deliver long-life production, helping stabilize output and strengthen domestic energy security.
Chevron sees the Gulf of Mexico as a key contributor to meeting future energy demand while maintaining operational efficiency and environmental performance. Investments in the basin align with the company’s strategy to develop advantaged assets that can generate strong returns across market cycles.
Industry Participation in the Auction
The lease sale drew bids from several major energy companies. According to a livestreamed U.S. government auction, a single bid from BP accounted for nearly half of the total amount, which is considered the largest individual bid amounting to $21 million for a block in the Green Canyon area.
Shell also delivered a strong showing in the Gulf lease sale, underscoring its focus on responsible resource development and a lower-carbon future.
However, the industry participation was lower than in the previous Gulf sale, as out of the 15,000 blocks offered by the U.S. BOEM, only 25 attracted bids, which is significantly lower than the 181 blocks that received bids in the Gulf lease sale held in December 2025.
The auction still represents part of a long-term offshore leasing strategy supported by the administration of Donald Trump. The U.S. government plans to hold multiple lease sales in the region through 2040 to maintain steady development of offshore resources.
Chevron’s Long-Term Commitment
Chevron’s participation in the lease sale underscores its continued confidence in the Gulf of Mexico as a strategic energy hub. By securing additional exploration acreage, the company aims to expand its deepwater portfolio while supporting a reliable energy supply for the United States.
As offshore opportunities evolve, Chevron, currently carrying a Zacks Rank #3 (Hold), remains focused on deploying advanced technology, maintaining industry-leading safety standards and responsibly developing resources that deliver long-term value for shareholders and the broader energy system.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
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 $971 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chevron Expands Gulf of Mexico Presence With Latest Lease Sale

Petrobras PBR, a Brazilian oil and gas company, has announced a strategic investment of $28.7 million in the groundbreaking Libra Rocks project, an initiative designed to advance geological modeling and deepen scientific understanding of the Mero offshore oil field in Brazil’s prolific Santos Basin. This initiative marks a major step toward improving reservoir management, increasing recovery efficiency and unlocking the full potential of one of the most technologically complex oil reservoirs in the world.
The investment highlights Petrobras’ commitment to strengthening its leadership in deepwater and ultra-deepwater exploration, while leveraging advanced science, artificial intelligence and academic collaboration to overcome geological challenges unique to Brazil’s pre-salt reservoirs.
Strategic Importance of the Mero Field in Brazil’s Pre-Salt Production
The Mero field stands as one of Brazil’s most productive offshore assets and a cornerstone of the country’s growing oil output. Located in the Santos Basin, the field achieved a remarkable production capacity of 770,000 barrels of oil per day (BOPD) as of May. This milestone places Mero among the largest producing pre-salt fields in Brazil, ranking third behind the massive Búzios and Tupi fields.
PBR reported that its total production averaged 2.4 million BOPD in 2025, representing an impressive 11% increase compared with the previous year. A significant portion of this growth stems from high-performing pre-salt developments like Mero, where advanced drilling technology and reservoir engineering continue to push operational boundaries.
The field’s enormous reserves and long-term production potential make it a strategic asset not only for PBR but also for Brazil’s energy security and global oil supply.
Collaborative Scientific Initiative With Leading Brazilian Universities
The Libra Rocks project is structured as a collaborative partnership between the Libra consortium and several of Brazil’s most prestigious academic institutions. These include the University of Brasília, the Federal University of Paraná and the Pontifical Catholic University of Rio Grande do Sul.
More than 150 researchers will contribute their expertise across geology, engineering, geophysics and computational modeling. The initiative also includes a strong educational component designed to cultivate the next generation of energy scientists. PBR plans to provide more than 90 scholarships for undergraduate research as well as master’s, doctoral and postdoctoral studies, ensuring sustained academic involvement throughout the four-year project.
This collaboration bridges industry innovation and academic research, enabling PBR to accelerate technological breakthroughs while strengthening Brazil’s scientific ecosystem.
Extreme Geological Conditions Beneath the Atlantic Ocean
The Mero field presents extraordinary geological challenges that demand advanced modeling techniques and innovative research approaches. The reservoir lies at depths ranging from 5,000 meters to 6,000 meters below sea level, beneath water depths of 1,800 meters to 2,000 meters. These extreme conditions make drilling, production and reservoir monitoring exceptionally complex.
The reservoir itself is composed primarily of carbonate rocks formed approximately 113-125 million years ago, during the geological period when South America and Africa began separating to form the South Atlantic Ocean. These ancient formations possess high porosity and strong permeability, characteristics that allow hydrocarbons to flow efficiently.
However, the reservoir also contains high salinity levels and elevated carbon dioxide concentrations, factors that complicate production operations and require sophisticated reservoir management strategies.
Artificial Intelligence Driving Advanced Geological Modeling
A central component of the Libra Rocks initiative is the integration of artificial intelligence and automated geological data processing. PBR plans to develop advanced algorithms capable of analyzing large volumes of geological data, significantly improving the speed and precision of reservoir modeling.
Through AI-driven analytics, researchers aim to construct high-resolution conceptual models of carbonate rock formations within the Libra area. These models will help engineers better understand pore distribution, permeability networks and fluid flow behavior, critical parameters that influence production efficiency.
By automating data interpretation, PBR intends to reduce uncertainty in production forecasts, improve well placement strategies and optimize the long-term management of the Mero reservoir.
Digital Rock Technology and 3D Reservoir Replication
Another innovative element of the Libra Rocks project involves the creation of “digital rock” models. Using high-resolution imaging technologies, scientists will generate three-dimensional replicas of reservoir rock samples, allowing them to study the microstructure of the carbonate formations in unprecedented detail.
These digital models enable researchers to simulate fluid movement through pore networks, providing valuable insights into how oil, water and gas behave inside the reservoir. The technology supports more accurate predictions of reservoir performance, which in turn helps operators maximize recovery while minimizing operational risks.
Digital rock modeling also enables the testing of multiple production scenarios without the cost and risk associated with physical experiments in deepwater environments.
Reducing Uncertainty and Improving Reservoir Management
According to PBR executive Bruno Moczydlower, the Libra Rocks project has the potential to significantly enhance operational decision-making across the Mero field. By improving geological understanding, the project aims to reduce uncertainty in the production curve, enabling more reliable long-term planning.
Advanced reservoir insights will also help engineers optimize the location of new wells, increase the recovery factor and better anticipate the timing of CO2 entry and oil loading within the reservoir. These improvements could translate into substantial gains in production efficiency and economic returns.
Ultimately, the project seeks to transform exploration and production technologies by combining advanced geology, artificial intelligence and digital modeling into a unified analytical framework.
Understanding the Geological Legacy of the Atlantic Ocean’s Formation
Beyond its operational benefits, the Libra Rocks project will contribute to broader scientific understanding of the geological processes that shaped the South Atlantic region. Researchers will study how the separation of Brazil and Africa influenced the formation and evolution of carbonate reservoirs within the basin.
This research may reveal new insights into the origin, composition, structure and transformation of ancient marine sediments, expanding global knowledge about pre-salt geological systems.
Such discoveries could influence exploration strategies not only in Brazil but also in other offshore basins around the world that share similar geological histories.
International Consortium Driving the Mero Field Development
The unitized Mero field is operated by Petrobras, which holds a 38.6% stake in the project. Several major international energy companies participate as partners, reflecting the field’s global significance.
The consortium includes Shell’s SHEL subsidiary Shell Brasil and TotalEnergies TTE, each with a 19.3% ownership stake, along with Chinese energy giants CNOOC and CNPC, each holding 9.65% stakes. The Brazilian state entity Pré-Sal Petróleo S.A. manages the production-sharing contract and represents the federal government’s interests, holding a 3.5% participation in the non-contracted area.
TotalEnergies is a French multinational energy company engaged in oil, natural gas, liquefied natural gas (LNG) and a growing portfolio of renewable and low-carbon energy projects worldwide. On the other hand, Shell is a global energy and petrochemical company headquartered in the United Kingdom, involved in oil and gas exploration and production, LNG, refining and expanding investments in power and clean energy solutions.
This collaborative structure ensures the combination of international expertise, financial investment and technological innovation necessary to develop one of the world’s most complex offshore reservoirs.
New Era of Scientific Innovation in Offshore Oil Development
Through the Libra Rocks project, PBR is positioning itself at the forefront of next-generation offshore exploration technologies. By integrating academic research, artificial intelligence and advanced geological modeling, the company aims to unlock deeper insights into one of Brazil’s most valuable energy assets.
If successful, the initiative could dramatically improve reservoir recovery rates, enhance operational efficiency and redefine how the global energy industry approaches the development of ultra-deepwater carbonate reservoirs.
For Brazil’s energy sector, the Libra Rocks project represents more than a research initiative. It signals a bold investment in scientific innovation, ensuring that the Mero field continues to deliver economic value and technological breakthroughs for decades to come.
PBR's Zacks Rank & a Key Pick
Currently, PBR, TTE and SHEL each carry a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at a better-ranked stock like TechnipFMC FTI, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is valued at $25.38 billion. It is a global energy technology company that provides subsea, surface and offshore and onshore project solutions to the oil and gas industry. TechnipFMC specializes in integrated engineering, procurement, construction and installation services for complex energy developments.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PBR Invests $28.7M in Libra Rocks Project to Boost Mero Field Research

Global energy major Chevron Corporation CVX is following the footprint of Shell plc SHEL and moving closer to major oil production agreements in Venezuela, marking a significant shift in the nation’s energy sector. These deals could become the first major upstream investments since the political developments surrounding President Nicolás Maduro earlier this year.
If finalized, the agreements would allow international oil companies to expand operations in some of Venezuela’s most resource-rich regions. The developments are viewed as a step toward rebuilding the country’s struggling oil industry, a goal strongly emphasized by U.S. President Donald Trump, who has highlighted a massive investment potential to revive Venezuela’s energy infrastructure after decades of decline.
Oil Law Reform Opens Doors to Foreign Investment
A major catalyst for renewed interest is Venezuela’s recent reform of its primary oil legislation. The country’s National Assembly approved changes that grant foreign companies more operational autonomy—even when they are minority partners in projects with the state oil company PDVSA.
Under the revised framework, international operators can manage production, exports and sales of Venezuelan crude. This shift aims to attract capital and technical expertise to a sector that has suffered from years of mismanagement and underinvestment during the administrations of Nicolás Maduro and his predecessor Hugo Chávez.
Chevron Expands Presence in the Orinoco Belt
Chevron, currently carrying a Zacks Rank #3 (Hold), is reportedly close to expanding its largest Venezuelan project, Petropiar, located in the massive Orinoco Belt—home to more than 75% of the country’s crude reserves. The proposed deal would give Chevron rights to develop the Ayacucho 8 block, a large area with proven extra-heavy oil resources. Chevron and Venezuelan energy authorities have also reached preliminary terms to expand the company’s largest oil venture, the Petropiar project, in the vast Orinoco Belt.
By extending its well-cluster production system from Petropiar to Ayacucho 8, Chevron could quickly scale output from the region. If completed, the project would represent the company’s fifth operational area in Venezuela and potentially make it the largest private producer in the Orinoco Belt. ConocoPhillips COP had a historical presence in the region and used to be one of the top foreign producers in the Orinoco Belt before it exited the country during earlier nationalization efforts. COP is negotiating a potential return to Venezuela despite $12 billion in claims from past asset nationalizations. CEO Ryan Lance discussed debt resolution options, including possible write-offs, during White House meetings as reforms unwind PDVSA's monopoly. This could enable ConocoPhillips to re-enter lucrative fields, balancing risks with global supply diversification needs.
CVX’s expansion could also increase production of upgraded Hamaca crude and related refined products, strengthening Venezuela’s export capabilities. Chevron is seeking a lower royalty rate for the new area, along with additional tax and trade incentives offered under new legislation aimed at developing greenfield oil and gas projects.
Shell Pursues Oil and Gas Projects in Eastern Venezuela
While Chevron focuses on heavy oil production, Shell is progressing on a broader mix of oil and gas initiatives. Last week, the company signed preliminary agreements with Venezuelan authorities and several engineering partners, including KBR and Baker Hughes.
The agreements reportedly target the development of the Carito and Pirital fields in the Monagas North region. These fields produce light and medium crude as well as natural gas—valuable resources used to blend with Venezuela’s heavier crude grades to facilitate exports.
Shell’s strategy also aligns with its broader focus on natural gas. The Monagas region sits close to existing gas infrastructure and includes some of the country’s largest gas-flaring areas. Future projects could involve capturing and processing this gas for export, potentially via neighboring Caribbean energy networks.
Growing Interest From Other International Energy Companies
The Venezuelan government and PDVSA are also in discussions with multiple international partners interested in expanding operations into adjacent fields and undeveloped blocks. Among them is Repsol, which already has significant financial exposure in the country due to unpaid debts accumulated during the sanctions period.
Authorities are reviewing existing oil and gas contracts to determine which projects remain viable and which could be revoked due to inactivity or missed investment commitments. The review also includes production-sharing agreements and joint ventures with international operators.
At the same time, the United States is reportedly scrutinizing potential partnerships to ensure compliance with sanctions and regulatory requirements before approving any new ventures.
A Potential Turning Point for Venezuela’s Oil Industry
If finalized, Chevron’s and Shell’s new agreements could mark a major turning point for Venezuela’s energy sector. The country holds some of the world’s largest oil reserves but has struggled to maintain production due to sanctions, lack of investment and aging infrastructure.
By allowing greater foreign participation and operational control, Venezuela is attempting to rebuild its oil industry and restore production capacity. For international energy companies, the reforms represent a rare opportunity to access vast untapped reserves—while navigating a complex geopolitical and regulatory environment.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Chevron & Shell Eye Major Oil Deals to Revive Venezuela Output

Petroleo Brasileiro S.A., or Petrobras PBR, posted fourth-quarter earnings per ADS of 72 cents, beating the Zacks Consensus Estimate of 57 cents. The bottom line improved from the year-ago profit of 49 cents. The strong numbers can be attributed to upstream production growth and higher downstream earnings.
Consolidated net income, which strips out one-time items, came in at $4,750 million compared with $3,083 million a year earlier. Petrobras’ adjusted EBITDA moved up to $11,107 million from $7,165 million a year ago.
Brazil's state-run energy giant reported revenues of $23,608 million, which climbed 13.4% from the year-earlier sales of $20,815 million and beat the Zacks Consensus Estimate of $23,062 million.
Along with the fourth-quarter earnings announcement, PBR added that it plans to shell out RMB 8.1 billion in dividends and equity interests.
Petroleo Brasileiro S.A.- Petrobras Price, Consensus and EPS Surprise
Petroleo Brasileiro S.A.- Petrobras price-consensus-eps-surprise-chart | Petroleo Brasileiro S.A.- Petrobras Quote
Coming back to earnings, let's take a deeper look at the recent performances of PBR’s two main segments: Upstream (Exploration & Production) and Downstream (or Refining, Transportation and Marketing).
Segment Details
Upstream: The Rio de Janeiro-headquartered company’s average oil and gas production during the fourth quarter reached 3,109 thousand barrels of oil equivalent per day (MBOE/d) — 81% liquids — compared with 2,628 MBOE/d in the same period of 2024.
Brazilian oil and natural gas production — constituting approximately 99% of the total output — improved 18.6% to 3,081 MBOE/d.
In the October to December period, the average sales price of oil (or the average Brent crude price) fell nearly 15% year over year to $63.69 per barrel. The decrease in crude prices was more than offset by the rise in production, thereby having a positive effect on upstream unit sales. Overall, the segment’s revenues improved to $14,329 million in the fourth quarter from $13,388 million in the year-ago period.
As far as the bottom line is concerned, it was somewhat dented by an uptick in pre-salt lifting costs (which rose 3.2% from the year-ago period to $6.86 per barrel). Still, the upstream unit recorded a net income of $3,099 million, up 48% from fourth-quarter 2024 earnings of $2,094 million.
Downstream (or Refining, Transportation and Marketing): Revenues from the segment totaled $22,298 million, 15.6% higher than the year-ago figure of $19,291 million, due to higher domestic sales volumes. Petrobras' downstream unit recorded a profit of $576 million, which rose sharply from earnings of $15 million in the fourth quarter of 2024. Apart from an increase in revenues, the unit’s income was buoyed by higher product prices.
Costs
During the period, Petrobras’ sales, general and administrative expenses were $1,991 million, 31% higher than the year-ago quarter. Selling expenses rose from $1,080 million a year ago to $1,462 million. However, a significant reduction in other expenses led to a 25.9% decrease in total operating expenses.
A 17.9% uptick in cost of sales led to a drop in PBR’s operating income to $5,512 million in the fourth quarter of 2025 compared with $2,787 million a year ago.
Financial Position
During the three months ended Dec. 31, 2025, Petrobras’ capital investments and expenditures totaled $6,313 million compared with $5,731 million (including signature bonus) in the prior-year quarter.
The Zacks Rank #3 (Hold) company generated a positive free cash flow for the 43rd consecutive quarter, with the metric coming in at 3,580 million. However, it fell from $3,766 million recorded in last year’s corresponding period.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
At the end of 2025, Petrobras had a net debt of $60,593 million, up from $52,240 million a year ago and $59,053 million as of Sept. 30, 2025. The company ended the quarter with cash and cash equivalents of $6,471 million.
Petrobras’ net debt to trailing 12-month EBITDA ratio deteriorated to 1.42 from 1.29 in the previous year. It was 1.53 at the end of the previous quarter.
Some Key Energy Earnings
While we have discussed PBR’s fourth-quarter results in detail, let’s see how some other energy companies have fared this earnings season.
Europe’s largest oil company, Shell plc SHEL, reported fourth-quarter 2025 earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $1.14, which lagged the Zacks Consensus Estimate of $1.21 due to a decline in oil prices and unfavourable tax adjustments, partly offset by higher hydrocarbon production. The bottom line also fell from the year-ago adjusted profit of $1.20.
Shell’s revenues of $66.7 billion were down slightly from $66.8 billion in fourth-quarter 2024 and missed the consensus mark by 2%. Shell repurchased $3.4 billion in shares in the fourth quarter. The London-based company expects another $3.5 billion worth of repurchases for the first quarter.
Motor fuel retailer Murphy USA MUSA announced fourth-quarter 2025 adjusted earnings per share of $7.53 which beat the Zacks Consensus Estimate of $6.67 and compared favorably with the year-ago profit of $6.96. The outperformance was primarily on the back of higher merchandise results. Murphy USA’s operating revenues of $4.7 billion rose 0.7% year over year but missed the consensus mark by $57 million due to lower-than-expected petroleum product sales.
As of Dec. 31, Murphy USA — which opened 29 new retail locations in the quarter and closed one outlet to take its store count to 1,800 — had cash and cash equivalents of $28.9 million and long-term debt (including lease obligations) of $2.2 billion, with a debt-to-capitalization of 77.6%. During the quarter, MUSA bought back shares worth $67.5 million.
U.S. energy operator APA Corporation APA reported fourth-quarter 2025 adjusted earnings of 91 cents per share, beating the Zacks Consensus Estimate of 62 cents. The bottom line rose from the year-ago adjusted profit of 79 cents. APA’s outperformance primarily reflects higher-than-expected production and lower costs, partly offset by a drop in commodity realizations. Revenues of $2 billion were down 20.9% from the year-ago quarter’s sales but beat the Zacks Consensus Estimate by 3%.
During the quarter under review, APA generated $808 million of cash from operating activities while it incurred $434 million in upstream capital expenditures. The company reported an adjusted operating cash flow of $1 billion. It also registered a free cash flow of $425 million compared with $420 million a year ago. As of Dec. 31, APA had approximately $516 million in cash and cash equivalents and $4.3 billion in long-term debt, representing a debt-to-capitalization of 41.3%.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Petrobras Q4 Earnings Beat as Output Growth Offsets Oil Drop

(RTTNews) - Shell Plc [SHEL] has agreed to sell its Jiffy Lube business to an affiliate of Monomoy Capital Partners for $1.3 billion. The transaction will be carried out through Pennzoil Quaker State Company, which operates Shell's lubricants business in the United States.
The deal includes Jiffy Lube International and its subsidiary Premium Velocity Auto, covering more than 2,000 franchise and company-operated service centers across the U.S., along with licensed locations in Canada.
Shell will retain ownership of its major lubricant brands, including Pennzoil, Quaker State and Rotella, as well as its manufacturing, marketing and distribution operations serving consumer, commercial and industrial customers in the U.S. and Canada.
As part of the agreement, Shell's Pennzoil Quaker State unit will also sign long-term lubricants supply deal with Monomoy. The company said the divestment allows it to monetize a non-core asset while focusing on higher-return opportunities within its lubricant's portfolio.
Jiffy Lube has been part of Shell's lubricants division for more than two decades and represents roughly 6.5 percent of Shell's lubricants volume in the U.S. and Canada.
The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Shell To Sell Jiffy Lube Business For $1.3 Billion

Shell plc SHEL, one of the world’s largest energy companies, has reportedly expanded its footprint in Venezuela through a series of critical agreements with the government, according to Reuters. These deals focus on offshore natural gas projects and onshore oil and gas ventures, positioning Shell as a major player in Venezuela's evolving energy sector. The strategic partnerships, which were finalized, include both technical and commercial collaborations with key local and international stakeholders, further cementing Shell’s long-term commitment to Venezuela’s oil and gas industry.
Strategic Offshore Natural Gas Developments
The centerpiece of Shell’s latest agreements in Venezuela is the long-running Dragon gas project, a significant offshore natural gas initiative. Shell has faced numerous challenges in recent years as shifting U.S. policies impacted its operations, but recent developments have provided a clear path forward. Following the issuance of new general licenses for oil and gas exploration by the U.S. government, Shell is now able to move ahead with the Dragon gas project.
The Dragon project, which has been in the works for several years, is vital to the region’s energy infrastructure. Once fully developed, it is expected to provide a crucial source of natural gas, boosting both local energy output and export potential. The project is poised to deliver its first gas to Trinidad by the third quarter of 2027, a significant milestone that will enhance the supply to the Atlantic LNG plant, one of the largest liquefied natural gas (“LNG”) facilities in the Caribbean.
Role of Trinidad in Shell’s Gas Plans
Trinidad and Tobago, a key partner in Shell’s Dragon gas project, stands to benefit substantially from this initiative. The goal is to significantly increase output at the Atlantic LNG plant, a joint venture between Shell, BP plc BP and the National Gas Company of Trinidad. This collaboration aims to boost LNG production capacity, which has been hindered in recent years due to gas shortages in Trinidad.
In 2022, Atlantic LNG produced just 9 million metric tons of LNG, falling short of its nameplate capacity of 12 million tons. The Dragon project promises to help alleviate these shortfalls, ensuring a steady supply of gas and improving the facility’s overall efficiency. Shell’s continued investment in Venezuela’s offshore gas sector reflects its commitment to the region and efforts to secure a stable energy future for both Venezuela and Trinidad.
Venezuela’s Oil Reform and Boost to Investment
In addition to its natural gas ventures, Shell is also eyeing significant opportunities in Venezuela’s oil sector. Recent reforms in the country’s oil industry, specifically the oil reform passed by Venezuela’s legislature in January, have created a more favorable environment for foreign investment. The reform includes measures designed to lower taxes, expand the power of the oil ministry and grant greater autonomy to private producers.
These changes come as part of a broader strategy to rejuvenate Venezuela’s once-booming oil industry, which has faced significant challenges in recent years. By offering incentives and more control to private sector players, Venezuela’s government aims to increase production and attract international investors. Shell, with its extensive experience and resources, is well-positioned to capitalize on these new opportunities and contribute to the revitalization of Venezuela’s oil and gas sector.
Collaborations With Key Partners: VEPICA, KBR and Baker Hughes
Shell’s latest agreements also involve strategic partnerships with several influential companies in the oil and gas sector. The company has signed technical and commercial agreements with VEPICA, a Venezuelan engineering firm, as well as with KBR and Baker Hughes BKR, two prominent players in the U.S. oil services market.
These collaborations are critical to ensuring the success of Shell’s ventures in Venezuela. VEPICA, with its deep understanding of local conditions and experience in engineering, will provide essential support for Shell’s on-the-ground operations. Meanwhile, KBR and Baker Hughes will contribute with their expertise in technology, infrastructure and services to help optimize Shell’s projects and maximize efficiency.
U.S. Diplomacy and its Impact on Energy Partnerships
The timing of these agreements follows a key diplomatic visit by U.S. Interior Secretary Doug Burgum to Venezuela, where he met with Venezuela’s president, Delcy Rodriguez. This visit marked the second such diplomatic mission in recent months, following the February visit by U.S. Energy Secretary Chris Wright. These high-level meetings signal a potential shift in U.S.-Venezuela relations, which have been strained for years due to political and economic tensions.
For Shell, these diplomatic developments are significant. The easing of U.S. sanctions and the issuing of general licenses for oil and gas exploration have allowed the company to move forward with projects that were previously delayed. As U.S. policies continue to evolve, Shell’s ability to engage with Venezuela’s energy sector is expected to grow, opening up further opportunities for collaboration and investment.
Venezuela's Commitment to Foreign Investment
Venezuela’s government has made clear that it is committed to creating a favorable environment for foreign investment in the energy sector. In a statement on state-run TV FANB, Venezuela’s government reiterated that the new agreements with Shell reaffirm the country’s status as a reliable and secure destination for foreign investment.
This message is part of a broader strategy to attract international companies back to Venezuela, which was once one of the largest oil producers in the world. By offering more favorable terms and improving the investment climate, Venezuela is working to restore its place as a global energy powerhouse.
Future of Shell’s Operations in Venezuela
Looking ahead, Shell’s operations in Venezuela are poised for significant growth. The company’s strategic investments in offshore gas and onshore oil, combined with the partnerships with key Venezuelan firms and international collaborators, position it to play a leading role in the country’s energy future. The Dragon gas project, in particular, represents a major milestone in Shell’s long-term strategy to expand its natural gas portfolio and strengthen the global LNG business.
With a favorable regulatory environment, ongoing diplomatic engagement and the support of key local and international partners, Shell is well-positioned to maximize the potential of Venezuela’s energy resources. As the company moves forward with operations, it is expected to contribute to Venezuela’s economic recovery and energy security, while also ensuring a stable supply of energy for global markets.
SHEL's Zacks Rank & Key Pick
Currently, SHEL, BP and BKR have a Zacks Rank #3 (Hold) each.
Investors interested in the energy sector might look at a better-ranked stock like TechnipFMC (FTI, sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is valued at $26.11 billion.With a focus on advancing sustainable and efficient energy systems, TechnipFMC is a global leader in the energy industry, providing innovative solutions for subsea, onshore, offshore and surface projects.
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 Up
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Shell Secures Major Oil and Gas Agreements With Venezuela

For Immediate Release
Chicago, IL – February 10, 2026 – 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: Bank of America Corp. BAC, Toyota Motor Corp. TM, Shell plc SHEL and Universal Safety Products, Inc UUU.
Here are highlights from Monday’s Analyst Blog:
Top Research Reports for Bank of America, Toyota and Shell
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 Bank of America Corp., Toyota Motor Corp. and Shell plc, as well as a micro-cap stock Universal Safety Products, Inc. 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 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 >>> Big Week for Economic News, Q4 Earnings Reports
Today's Featured Research Reports
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+23.7% vs. +17.2%). The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its fourth-quarter 2025 results were aided by higher revenues, partly offset by a rise in costs.
Despite the rate cuts, the company's net interest income (NII) is expected to be aided by loan growth and lower funding costs. The company’s plans to open financial centers in new and existing markets, and improve digital capabilities will likely support the top line.
Yet, the volatile nature of the capital markets makes growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth may normalize going forward. Elevated expenses due to steady investments in franchise will likely hurt bottom-line growth. Weak asset quality is another concern.
(You can read the full research report on Bank of America here >>>)
Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past six months (+27.9% vs. +14.9%). The company is witnessing a surge in hybrid adoption which is boosting its sales. Toyota Motor plans to significantly expand hybrid and plug-in hybrid production by 2028. Upbeat outlook for fiscal 2026 sales sparks optimism.
Higher expected year-over-year sales are likely to boost the company’s top-line growth in fiscal 2026. Toyota is taking initiatives to improve profits by lowering the level of sales needed to break even.
However, material prices, forex rate and tariffs imposed by the U.S. government on vehicle and vehicle parts imports are expected to be a big hit on the operating profits in fiscal 2026. High R&D expenses on advanced technologies and alternative fuels for the development of electric and autonomous vehicles are likely to limit the near-term margins. As such, the stock warrants a neutral stance.
(You can read the full research report on Toyota Motor here >>>)
Shell’s shares have gained +9.8% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s gain of +30%. The company being a London based oil supermajor, looks fairly balanced at the moment. Shell demonstrated resilient cash generation in 2025, delivering robust operating and free cash flows, supporting shareholder returns.
Shell’s LNG franchise remains a long-term strength, with solid sales growth and clear demand visibility. Structural cost reductions achieved ahead of schedule and portfolio simplification have improved efficiency and balance-sheet flexibility.
However, earnings and revenue declined year over year, highlighting exposure to commodity price cycles. Net debt increased, while Chemicals and Renewables continue to weigh on returns amid weak margins. Potential LNG oversupply and geopolitical volatility add uncertainty. Overall, strengths are offset by cyclical and segment-specific risks, justifying a neutral stance.
(You can read the full research report on Shell here >>>)
Shares of Universal Safety Products have outperformed the Zacks Building Products - Miscellaneous industry over the past six months (+77.5% vs. +11.3%). This microcap company with a market capitalization of $10.18 million has materially strengthened its balance sheet following the May 2025 divestiture of its core operating assets. Cash increased to $5.2 million, and factoring debt was fully eliminated, reducing near-term financial risk and improving flexibility during its transition.
Management demonstrated disciplined capital allocation by returning $2.3 million to shareholders via a $1.00 special dividend. Liquidity was extended through $2.5 million of convertible financing, supporting operations into late 2026.
Yet, the divestiture drove a sharp revenue contraction, leaving the company without a stable operating base as it explores a new direction. Elevated SG&A, customer concentration, tariff sensitivity, potential dilution and internal control weaknesses weigh on earnings quality and valuation. The valuation reflects both balance-sheet improvement and execution risk.
(You can read the full research report on Universal Safety Products here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
https://www.zacks.com
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.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Bank of America, Toyota Motor, Shell and Universal Safety

Monday, February 9, 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 Bank of America Corp. (BAC), Toyota Motor Corp. (TM) and Shell plc (SHEL), as well as a micro-cap stock Universal Safety Products, Inc (UUU). 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 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 >>> Big Week for Economic News, Q4 Earnings Reports
Today's Featured Research Reports
Bank of America’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+23.7% vs. +17.2%). The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. Its fourth-quarter 2025 results were aided by higher revenues, partly offset by a rise in costs.
Despite the rate cuts, the company's net interest income (NII) is expected to be aided by loan growth and lower funding costs. The company’s plans to open financial centers in new and existing markets, and improve digital capabilities will likely support the top line.
Yet, the volatile nature of the capital markets makes growth in trading revenues uncertain. Despite a robust trading performance since 2022, growth may normalize going forward. Elevated expenses due to steady investments in franchise will likely hurt bottom-line growth. Weak asset quality is another concern.
(You can read the full research report on Bank of America here >>>)
Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past six months (+27.9% vs. +14.9%). The company is witnessing a surge in hybrid adoption which is boosting its sales. Toyota Motor plans to significantly expand hybrid and plug-in hybrid production by 2028. Upbeat outlook for fiscal 2026 sales sparks optimism.
Higher expected year-over-year sales are likely to boost the company’s top-line growth in fiscal 2026. Toyota is taking initiatives to improve profits by lowering the level of sales needed to break even.
However, material prices, forex rate and tariffs imposed by the U.S. government on vehicle and vehicle parts imports are expected to be a big hit on the operating profits in fiscal 2026. High R&D expenses on advanced technologies and alternative fuels for the development of electric and autonomous vehicles are likely to limit the near-term margins. As such, the stock warrants a neutral stance.
(You can read the full research report on Toyota Motor here >>>)
Shell’s shares have gained +9.8% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s gain of +30%. The company being a London based oil supermajor, looks fairly balanced at the moment. Shell demonstrated resilient cash generation in 2025, delivering robust operating and free cash flows, supporting shareholder returns.
Shell’s LNG franchise remains a long-term strength, with solid sales growth and clear demand visibility. Structural cost reductions achieved ahead of schedule and portfolio simplification have improved efficiency and balance-sheet flexibility.
However, earnings and revenue declined year over year, highlighting exposure to commodity price cycles. Net debt increased, while Chemicals and Renewables continue to weigh on returns amid weak margins. Potential LNG oversupply and geopolitical volatility add uncertainty. Overall, strengths are offset by cyclical and segment-specific risks, justifying a neutral stance.
(You can read the full research report on Shell here >>>)
Shares of Universal Safety Products have outperformed the Zacks Building Products - Miscellaneous industry over the past six months (+77.5% vs. +11.3%). This microcap company with a market capitalization of $10.18 million has materially strengthened its balance sheet following the May 2025 divestiture of its core operating assets. Cash increased to $5.2 million, and factoring debt was fully eliminated, reducing near-term financial risk and improving flexibility during its transition.
Management demonstrated disciplined capital allocation by returning $2.3 million to shareholders via a $1.00 special dividend. Liquidity was extended through $2.5 million of convertible financing, supporting operations into late 2026.
Yet, the divestiture drove a sharp revenue contraction, leaving the company without a stable operating base as it explores a new direction. Elevated SG&A, customer concentration, tariff sensitivity, potential dilution and internal control weaknesses weigh on earnings quality and valuation. The valuation reflects both balance-sheet improvement and execution risk.
(You can read the full research report on Universal Safety Products here >>>)
Other noteworthy reports we are featuring today include Boston Scientific Corp. (BSX), CME Group Inc. (CME) and General Dynamics Corp. (GD).
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
Featured Reports
Boston Scientific (BSX) Rides EP Surge Amid Tariff Headwinds
Per the Zacks analyst, Boston Scientific's strong EP and WATCHMAN momentum support growth prospects, though tariff annualization and FX headwinds could limit margin expansion in 2026.
Improving Clearing and Transaction Fees Aid CME Group (CME)
Per the Zacks analyst, CME is set to grow on higher clearing and transaction fees as market position, diverse derivative product lines and global reach drive volumes. However, escalating expense ails.
Increasing Orders Drive General Dynamics (GD) Amid Labor Shortage
Per the Zacks analyst, General Dynamics is likely to benefit from increasing orders from the Pentagon and US allies. Yet labor shortage result in delays and likely impact operating results.
Wabtec (WAB) Strengthens Market Position Despite Elevated Cost
Per the Zacks analyst, Wabtec Corporation is benefiting from rail market recovery and strong order momentum, yet rising operating expenses and macroeconomic headwinds continue to pressure margins.
Ionis' (IONS) Progress With Wholly-Owned Drugs Encouraging
The Zacks Analyst is encouraged by Ionis' progress with its wholly owned assets, especially Tryngolza. The company's partnerships with Big Pharma provides it with funds to invest in their development.
Align (ALGN) Rides on Growing Invisalign Volume Amid Fierce Rivalry
The Zacks analyst is optimistic about Align's strong market rollout of several Invisalign products globally. The ongoing entry of new players may dent the company's strong Invisalign sales globally.
American Eagle (AEO) Brands and Other Strategies Aid Performance
Per the Zacks analyst, American Eagle is executing its strategic priorities, aimed at long-term growth, operational efficiency and improving agility. Its brand-expansion efforts also bode well.
New Upgrades
Strong Demand And Bookings Boost Carnival's (CCL) Prospects
Per the Zacks analyst, Carnival benefits from strong demand, increased booking volumes, and the destination strategy. Also, focus on fleet optimization bodes well.
DRAM and HBM Growth Continues to Aid Formfactor's (FORM) Prospects
Per the Zacks analysis, DRAM and HBM demand growth, rising test intensity, and HBM4 transition strength are expected to support FormFactor's margins and long-term prospects.
Silicon Motion (SIMO) Rides on Solid Demand for SSD Controllers
Per the Zacks analyst, strong SSD controller demand, led by enterprise and data-center SSDs, is expected to drive Silicon Motion's top line. Growing traction in the automotive market is a tailwind.
New Downgrades
Soft Print Advertising Revenue a Worry for News Corp (NWSA)
News Corporation is grappling with soft print advertising demand. Per the Zacks analyst, the company needs to ramp up businesses in digital space to offset the same.
A High Cost Level Hurts Margins at Molina Healthcare (MOH)
Per the Zacks analyst, the company's elevated costs due to higher medical expenses can strain margins. It faces rising regulatory uncertainty tied to ACA subsidies, which weakens visibility.
Chipotle (CMG) Navigates Softer Demand and Rising Cost Pressures
Per the Zacks Analyst, Chipotle is navigating softer demand and persistent inflation in food, labor and marketing costs, which are likely to pressure traffic trends and margins in the near term.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
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 $971 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Bank of America, Toyota Motor & Shell

Europe’s largest oil company, Shell plc SHEL, reported fourth-quarter 2025 earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of $1.14, which came in below the Zacks Consensus Estimate of $1.21 due to a decline in oil prices and unfavourable tax adjustments, partly offset by higher hydrocarbon production. The bottom line also fell from the year-ago adjusted profit of $1.20.
Shell’s revenues of $66.7 billion were down slightly from $66.8 billion in fourth-quarter 2024 and missed the consensus mark by 2%.
Meanwhile, Shell repurchased $3.4 billion in shares in the fourth quarter. The London-based company expects another $3.5 billion worth of repurchases for the first quarter.
Shell PLC Unsponsored ADR Price, Consensus and EPS Surprise
Inside Shell’s Segments
Upstream: The segment recorded a profit of $1.6 billion (excluding items) during the quarter, down from $1.7 billion (adjusted) in the year-ago period. This primarily reflects the impact of lower prices and a decline in natural gas output.
At $58.61 per barrel, the group’s worldwide realized liquids prices were 17.1% below the year-earlier levels, while natural gas prices plunged 11.5%.
Shell’s upstream volumes averaged 1,892 thousand oil-equivalent barrels per day (MBOE/d), up 1.8% from the year-ago period, mainly due to a rise in oil churned out by the company. Liquids production totaled 1,393 thousand barrels per day (an increase of 4.6% year over year), and natural gas output came in at 2,894 million standard cubic feet per day (down 5.3%).
Chemicals and Products: In this segment, the London-based supermajor reported an adjusted loss of $66 million, improving from a much wider loss of $229 million incurred in the year-ago period. The favorable comparison was due to higher refining margins. Meanwhile, refinery utilization came in at 95%.
Integrated Gas: The unit reported an adjusted income of $1.7 billion, deteriorating from $2.2 billion in the October-December quarter of 2024. Results were primarily impacted by adverse tax implications, lower realized prices and higher costs, partly offset by an increase in production available for sale, which rose 4.8% from the fourth quarter of 2024 to 948 MBOE/d. Meanwhile, LNG sales volumes were up 27.7% year over year to 19.79 million tons.
Marketing: The segment recorded an income of $578 million (excluding items) during the quarter compared to the year-ago earnings of $839 million, due to lower margins and unfavourable tax movements.
Renewables and Energy Solutions: The segment incurred an adjusted income of $131 million, turning around from the year-ago loss of $311 million. The performance boost primarily reflects contributions from trading and optimisation, and energy marketing. External power sales were down 5.3% year over year to 72 terawatt hours, while piped gas sales edged down 3% to 160 terawatt hours.
Financial Performance
As of Dec. 31, 2025, the Zacks Rank #4 (Sell) company had $30.2 billion in cash and $75.6 billion in debt (including short-term debt). Net debt-to-capitalization was approximately 20.7%, up from 17.7% a year ago.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter under review, Shell generated cash flow from operations of $9.4 billion, returned $2.1 billion to its shareholders through dividends, and spent $6 billion in cash on capital projects.
The company’s cash flow from operations decreased more than 28% from the year-earlier level. Meanwhile, the group raked in $4.2 billion in free cash flow during the fourth quarter compared to $8.7 billion a year ago.
Guidance
Shell expects first-quarter 2026 upstream volumes of 1,700-1,900 MBOE/d, while Integrated Gas production is expected between 920 MBOE/d and 980 MBOE/d. The company also foresees marketing sales volumes of 2,550-2,750 thousand barrels per day and refinery utilization in the range of 90-98%. Meanwhile, Shell expects its total cash capital expenditure for full-year 2026 to range between $20 billion and $22 billion.
A Look At Other ‘Big Oil’ Earnings
While we have discussed Shell’s third-quarter results in detail, let’s take a look at some other Big Oil energy reports of this season.
American multinational ExxonMobil XOM reported fourth-quarter 2025 earnings per share of $1.71 (excluding identified items), which beat the Zacks Consensus Estimate of $1.68. The bottom line also improved from the year-ago level of $1.67. ExxonMobil’s total quarterly revenues of $82.3 billion missed the Zacks Consensus Estimate of $83.2 billion. The top line decreased from the year-ago figure of $83.4 billion.
ExxonMobil’s better-than-expected quarterly earnings were fueled by higher oil equivalent production volumes and higher industry refining margins. The positives were partially offset by lower crude oil and natural gas price realizations.
Smaller rival Chevron CVX reported adjusted EPS of $1.52, beating the Zacks Consensus Estimate of $1.44. The outperformance was backed by higher-than-expected production in the company’s key upstream segment and an 8% year-over-year reduction in costs during this quarter. Chevron’s output of 4.045 MBOE/d came in above the consensus mark of 4,009 MBOE/d. Importantly, the integrated oil and gas company hiked its quarterly cash dividend by 4% to $1.78 per share.
CVX recorded $10.8 billion in cash flow from operations compared with $8.7 billion in the year-ago period. Chevron’s free cash flow for the quarter was $4.2 billion. The company distributed a total of $27.1 billion in cash to its shareholders over this year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

Shell PLC

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short