Top Analyst Reports for Home Depot, Mastercard & McDonald's

Friday, September 29, 2017

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Home Depot (HD), Mastercard (MA) and McDonald’s (MCD). 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 >>>

Home Depot’s shares have gained +5.9% in the last three months, compared with the +5.1% gain of the Zacks Retail Building Products industry. The company has been consistently gaining from its interconnected strategy, focus on Pro customers, and housing market recovery. These factors helped the company post a stellar second-quarter fiscal 2017 performance, which marked its highest ever quarterly sales and earnings.

Notably, sales marked its 13th straight beat, while earnings retained its 5-year long trend of positive surprise. Results were driven by solid growth across all regions, both in stores and online. Also, Pro category sales continued to outperform, driven by constant efforts to enrich customers’ experiences. The sturdy first half and expectations of improved home prices encouraged the company to raise its fiscal 2017 view.

(You can read the full research report on Home Depot here >>>).

Mastercard’s shares have gained +12.9% in the last three months, compared with the +7.5% gain of the Zacks Financial Transaction Services industry. Revenue growth has remained strong and will continue to grow on the back of its strong market position and attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings.

The acquisition of VocaLink and NuData Security, complement the company’s efforts to participate in new payment flows and enhance its safety and security offerings. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 1.8% upward over the last 60 days.

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

Shares of Buy-rated McDonald’s have gained +1.7% in the last three months, compared with the -3.3% dip of the Zacks Restaurants industry. Increased focus on delivery, enhancement of digital capabilities, and accelerated deployment of Experience of the Future restaurants in the U.S should drive growth, too. Efforts to attract customers in International Lead & High Growth Markets also bode well.

In fact, global comps at McDonald’s have been positive over the past eight quarters. Yet, high labor costs and currency headwinds might keep profits under pressure. Also, political and economic unrest in some parts of the world and a not so enticing U.S. restaurant space might restrict sales growth.

(You can read the full research report on McDonald’s here >>>).

Other noteworthy reports we are featuring today include Kimberly-Clark (KMB), Raytheon (RTN) and Northrop Grumman (NOC).

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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

Focus on Pro Customers to Lift Home Depot's (HD) Margins

Investment in Technology, Acquisitions Aids MasterCard (MA)

McDonald's (MCD) Well Poised on Efforts to Boost Traffic

Featured Reports

Kimberly-Clark's (KMB) Cost Savings Plan to Boost Growth

Per the Zacks analyst, Kimberly-Clark's cost-savings initiatives are likely to drive growth.

FMS Contracts Drive Raytheon (RTN), Rise in Costs a Concern

The Zacks analyst believes that Raytheon's distinct focus on its overseas business will drive growth.

Enbridge's (EEP) Stable Fee-Based Revenues Offsets Debt Load

While the Zacks analyst likes Enbridge's stable fee-based revenues from diverse energy infrastructure assets, the partnership's high leverage is a matter of concern.

Zimmer (ZBH) Grows Through Pacts, LDR Synergy Target Thrills

The Zacks analyst is hopeful about Zimmer's consistent growth through inorganic means. The latest inclusion of LDR Holdings will bolster Zimmer's presence in the market.

Strong Financials Aid Northrop (NOC) Amid High Expenses

Per the Zacks analyst, Northrop's strong balance sheet and steady cash flow position offers it substantial financial flexibility.

New Upgrades

Companhia Brasileira (CBD) Grows on Store Opening & Traffic

Per the Zacks analyst, Companhia Brasileira gains from rising store traffic in its higher-return format stores, especially Assai. Encouragingly it plans to open 6 to 8 new Assai stores by 2017 end.

Fortive (FTV) to Grow on eMaint & Global Traffic Buyouts

Per the Zacks analyst, acquisitions of eMaint Enterprises and Global Traffic Technologies has accelerated Fortive's push into the rapidly-growing cloud computing market.

New Downgrades

Crown Castle (CCI) Hurt by Wireless Industry Consolidation

The Zacks analyst is pessimistic about the high customer concentration and consolidation in the wireless industry which are likely to affect Crown Castle's top line.

Ingersoll (IR) Plagued by Operating Risks Related to Brexit

Per the Zacks analyst, Ingersoll is likely to be stifled by the renegotiated deals and restrictions imposed on trade due to a highly unpredictable European economy post the Brexit referendum.

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Raytheon Company (RTN) : Free Stock Analysis Report
 
Northrop Grumman Corporation (NOC) : Free Stock Analysis Report
 
McDonald's Corporation (MCD) : Free Stock Analysis Report
 
Mastercard Incorporated (MA) : Free Stock Analysis Report
 
Kimberly-Clark Corporation (KMB) : Free Stock Analysis Report
 
Home Depot, Inc. (The) (HD) : Free Stock Analysis Report
 
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