Top Stock Reports for McDonald's, Deere & Marsh & McLennan
Thursday, May 4, 2023
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 McDonald's Corporation (MCD), Deere & Company (DE) and Marsh & McLennan Companies, Inc. (MMC). 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 McDonald's have performed in-line with the Zacks Restaurants Industry in the year-to-date period (+12% vs. +12.5%), but have outperformed the S&P 500 index (+7.1%). The company’s top and the bottom line increased on a year-over-year basis in the March-quarter report on April 25th. The upside was fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs.
McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu and solid marketing are likely to pave the way for additional growth in the upcoming periods.
The company is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have increased in the past 30 days.
(You can read the full research report on McDonald’s here >>>)
Deere shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+1.0% vs. +0.2%). The company is witnessing solid growth in order levels, which is expected to aid its top-line performance in the forthcoming quarters. Strong replacement demand will also continue to boost the company's results.
Demand for its construction equipment will likely benefit from anticipated growth in infrastructure investments in the United States. Improved prices will help negate the impact of high material and labor costs on the company's margins. The earnings estimates for the company for the ongoing quarter and fiscal year have undergone positive revisions lately.
Product launches equipped with the latest technology to make farming automated will continue to provide Deere with an edge over its competitors. The company is poised to benefit in the long run from rapid growth in global population as well as the rising worldwide infrastructure needs.
(You can read the full research report on Deere here >>>)
Shares of Marsh & McLennan have outperformed the Zacks Insurance - Brokerage industry over the past six months (+10.7% vs. +7.7%). The company is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses. Its increased stake in Marsh India will further buoy growth.
Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Zacks analyst expects the top line to grow 4.6% year over year in 2023. The Risk and Insurance Services unit has been contributing to revenue growth for a while. MMC had around $4 billion left under authorization as of Mar 31, 2023.
However, high operating costs might weigh on the margins. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.
(You can read the full research report on Marsh & McLennan here >>>)
Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Incorporated (VRTX), Uber Technologies, Inc. (UBER) and Colgate-Palmolive Company (CL).
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>>>
Today's Must Read
McDonald's (MCD) Rides On Robust Comps Growth & Digitization
Deere (DE) to Grow on Innovation & Improving End Markets
Rising Revenues Aid Marsh & McLennan (MMC) Amid High Expenses
Featured Reports
Vertex (VRTX) Cystic Fibrosis Sales Up, Non-CF Pipeline Solid
Vertex's cystic franchise (CF) sales are rising driven by Trikafta. The Zacks analyst likes its rapid progress of its non-CF pipeline with many late-stage projects having established proof of concept
Uber (UBER) Rides on Delivery Business Amid Rising Expenses
The Zacks analyst likes Uber's efforts to expand its Delivery operations in response to the surge in business. However, rising costs and expenses are concerning as they pose a threat to Uber's bottom
Robust Pet Unit & Pricing Plans Aids Colgate's (CL)
Per the Zacks analyst, Colgate has been gaining from strength in pet unit, revenue growth management and pricing actions. This led to Q1 organic sales growth of 10% for the 17th successive quarter.
F5 (FFIV) Rides on Shift to Subscription Based Services
Per the Zacks analyst, F5's focus on selling more subscription-based services is helping the company generate stable revenues and higher margins.
Partnerships Aid Affiliated Managers (AMG) Amid Cost Woes
Per the Zacks analyst, Affiliated Managers is poised to generate meaningful growth through new investments supported by a solid balance sheet. Yet, mounting costs might hurt bottom-line growth.
Omnicell (OMCL) Service Solutions Boost Sales amid Macro Woe
The Zacks analyst is impressed with the ongoing expansion of Omnicell's advanced services solutions contributing strongly to the topline. Yet, industry wide inflationary pressure impedes growth.
Core Labs (CLB) to Gain from Low Capital Expenditure Needs
The Zacks analyst likes Core Labs' low capital expenditure needs, which allows it to generate substantial free cash flows but is worried over the low dividend payout.
New Upgrades
Fortinet (FTNT) Rides on Product Strength, Marketing Efforts
Per the Zacks analyst, Fortinet is gaining from solid contributions of its growth-oriented products Security Fabric, cloud and SD-WAN. Increasing marketing efforts are also a positive.
Solid Leisure Demand & Travel Activity Aid MGM Resorts (MGM)
Per the Zacks analyst, increased business volume and travel activity along with COVID-related travel restrictions ease in Macau benefits MGM Resorts.
United Airlines (UAL) Rides on Upbeat Air Travel Demand
Rosy air-travel demand is driving United Airlines' top line. The Zacks analyst also finds the company's environment-friendly approach encouraging.
New Downgrades
Higher Input Costs, Weak Demand Ail Huntsman (HUN)
Per the Zacks analyst, higher raw material costs will weigh on margins in the company's Polyurethanes unit. Weaker demand in Europe and China will also hurt sales volumes.n
Soft Garden Segment Hurts Central Garden's (CENT) Sales
Per the Zacks analyst, softness in the Garden portfolio have made things tough for Central Garden & Pet Company. Garden segment sales fell 5% in the second quarter.
Macro Weakness, High Debt & Stiff Competition Ail TELUS (TU)
Per the Zacks analyst, Telus is being affected by macroeconomic uncertainties which are impacting client's spending decisions. Stiff competition and high debt load remain concerns
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McDonald's Corporation (MCD) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report
Colgate-Palmolive Company (CL) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
