Yahoo Finance Top Analyst Reports for Tesla, Salesforce & McDonald's
Friday, October 6, 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 Tesla, Inc. (TSLA), Salesforce, Inc. (CRM) and McDonald's Corp. (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 >>>
Tesla’s shares have outperformed the Zacks Automotive - Domestic industry over the past six months (+40.5% vs. +26.2%). The electric vehicle (EV) giant witnessed record production, deliveries and revenues in the last reported quarter.
Production ramp-up at Gigafactory 4 (in Berlin) and 5 (in Austin) and the introduction of new models, including Semi and Cybertruck, are set to support long-term delivery growth. Additionally, Tesla’s energy generation and storage revenue outlook is promising. Falling debt levels and the solid potential of its charging business are other positives.
However, shrinking margins remain a near-term concern, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and the introduction of new models.
(You can read the full research report on Tesla here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+52.4% vs. +34.7%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+10.6% vs. +9.6%). The company is benefiting from its strong comparable restaurant sales growth, digital initiatives, campaigns and loyalty programs.
During the second quarter of 2023, digital dales (from the top six markets) came in at $8 billion, contributing 40% to the company’s system-wide sales. Given a rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods. Also, its focus on marketing efforts and pricing strategies bodes well.
Earnings estimates for 2023 have increased in the past 60 days, depicting analysts’ optimism about the stock’s growth potential. However, inflationary pressures and stiff competition are primary headwinds.
(You can read the full research report on McDonald’s here >>>)
Other noteworthy reports we are featuring today include Starbucks Corp. (SBUX), Lockheed Martin Corp. (LMT) and Schlumberger Ltd. (SLB).
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
Tesla (TSLA) Rides on Solid Model 3/Y Popularity
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Robust Comps to Aid McDonald's (MCD), Inflation Woes Stay
Featured Reports
Store & Comps Growth Aid Starbucks (SBUX), Inflation Hurts
Per the Zacks analyst, Starbucksp' rapid unit growth, digital offerings and robust comps growth bode well. However, increased expenses and inflation are major concerns to the company's growth trend.
Order Growth Boosts Lockheed (LMT), Tiff With Turkey Ails
Per the Zacks Analyst, steady order flow continues to boost Lockheed's revenue growth. Yet, the U.S. government's Tiff with Turkey over its involvement in Russia's S-400 may hurt F-35 program.
SLB Benefits From Increased Oilfield Service Demand Globally
SLB anticipates another year of margin growth from increased service pricing since overall operations see broad-based expansion. Yet, its significant debt exposure concerns the Zacks analyst.
Colgate's (CL) Higher Pricing & Productivity Aid Margins
Per the Zacks analyst, Colgate's strong pricing, benefits of funding growth and other productivity plans, are aiding gross margin. It expects continued adjusted gross margin growth in FY23.
Solid U.S. Segment Sales Aid Aflac (AFL), Soft Cash Flows Hurt
Per the Zacks analyst, Aflac's U.S. segment, backed by product innovations and increased face-to-face interactions, fuels growth. A decline in operating cash flows remains a concern.
Freight Revenues Boost Wabtec (WAB) Amid Rising Expenses
The Zacks analyst is impressed by solid growth across Wabtec's freight segment revenues backed by strength across all product lines. However, escalating costs are headwinds.
Loans, Higher Rates Aid Hancock Whitney (HWC) Amid High Cost
Per the Zacks analyst, Hancock Whitney's revenue growth is driven by solid loan balance, higher rates and business expansion efforts. High expenses and subdued mortgage business are major concern
New Upgrades
Dr. Reddy's (RDY) Global Generics Business to Boost Sales
Per the Zacks analyst, Dr. Reddy's enjoys a strong foothold in the generics market with new product launches and pending filings. Its strategic initiatives are expected to mitigate challenges.
Strong Service Center Segment Aids Applied Industrial (AIT)
Per the Zacks analyst, Applied Industrial's Service Center Based Distribution segment is driven by robust growth across the U.S. Service Center network and indirect consumables business.
Sonos (SONO) Performance Gains From Solid Demand for Speakers
Per the Zacks analyst, Sonos' performance is gaining from the robust uptake of Era 100 and Era 300 speakers. Also, frequent product launch is a tailwind.
New Downgrades
Nabors Industries (NBR) Wrecked by Massive Debt Burden
The Zacks analyst believes that Nabors Industries' high debt-to-capitalization of 80.9% is a concern, as it restricts the company's financial freedom to tap into growth opportunities.
CommScope (COMM) Plagued by Macroeconomic Headwinds, Inflation
Per the Zacks analyst, lower spending from cable operators and wireless carriers owing to the macroeconomic challenges and high inflationary pressures will likely hinder CommScope's margins.
Stiff Competition, Margins Woes Hurt Walgreens' (WBA) Growth
The Zacks analyst is worried about Walgreens' facing headwinds in the form of increased competition and tough industry conditions. The slowdown in generic introduction has been affecting its margins.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
