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The Zacks Analyst Blog Highlights: Cisco, Philip Morris, McDonald's, General Dynamics, Union Pacific and Cintas

For Immediate Release

Chicago, IL – March 27, 2017 – 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 Cisco (NASDAQ: CSCO – Free Report ), Philip Morris (NYSE: PM – Free Report ), McDonald's (NYSE: MCD – Free Report ), General Dynamics (NYSE: GD – Free Report ), Union Pacific (NYSE: UNP – Free Report ) and Cintas (NASDAQ: CTAS – Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Friday’s Analyst Blog:

Analyst Reports for Monday: MCD, PM, GD

Today's Research Daily features new research reports on 17 major stocks, including Cisco (NASDAQ: CSCO – Free Report ), Philip Morris (NYSE: PM – Free Report ), McDonald's (NYSE:MCD – Free Report ) and General Dynamics (NYSE: GD – Free Report ).

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Cisco shares have outperformed the Zacks Technology sector year to date, gaining +12.4% vs. +9.2%. In the updated research report issued today, the Zacks analyst covering the stock highlights Cisco’s expanding footprint in the rapidly growing security and data center market. Moreover, partnerships with the likes of Pure Storage, salesforce.com and IBM will help Cisco to gain significant traction in the data center, cloud and Internet of Things (IoT) market in the long haul. The recent acquisition of AppDynamics will also help the company to gain traction in the application and business monitoring space. Intensifying competition from several smaller players, slowing order growth from service providers and challenges in emerging markets are the primary headwinds at this stage. (You can read the full research report on Cisco here >> )

Philip Morris shares have been standout performers this year, outperforming both the S&P 500 index as well as the Zacks Tobacco industry (PM is up +23.5% in the year-to-date period vs. +15.6% for the industry and +4.7% for the S&P 500 index). The stock has historically been a dividend play (current yield an attractive 3.7%), but it's recent performance puts it an altogether category. Driving this momentum has been the company's improved operating outlook and expectations of greater consolidation. The analyst likes the company's strong brand portfolio which is crucial in helping it command a leading market share in the tobacco industry. Additionally, the company's efforts to launch new products to cater to changing consumer tastes are also encouraging. Heatsticks and IQOS product category are gaining popularity after they expanded nationally during the quarter. However, large excise tax increase in Argentina, the surge of illicit trade in Pakistan, and the cigarette volume declines in the Philippines and Thailand continued to pressurize the company. Valuation questions are also reasonable following the stock's impressive run up, particularly in a backdrop of unfavorable currencies (all of PM's revenues come from beyond the U.S.) and the emerging uptrend in interest rates. (You can read the full research report on Philip Morris here >> )

McDonald's shares have gained +10.7% over the last six months easily outperforming many of its peers which have been struggling to survive the restaurant space’s tough operating environment lately. The Zacks analyst likes the focus on improving guest count, rollout of the second phase of All Day Breakfast and its national value platform–McPick 2. Also, attempts to attract customers in international lead markets bode well as the positive global comps over the past 6 quarters show. Increased focus on refranchising will cut the company’s capital requirements and facilitate EPS growth and ROE expansion over the long-term. On the flip side, higher labor costs, currency headwinds and concerns about the efficiencies of an ever expanding menu remain issues. (You can read the full research report on McDonald's here >> )

Shares of General Dynamics have gained +46.9% over the last one year, outperforming the Zacks Aerospace - Defense industry, which increased +26.5% over the same period. The Zacks analyst likes the fact that revenues are derived from a broad portfolio of products and services whose long-term outlook has notably improved given the administration's plans for material spending increases. General Dynamics will likely see solid growth momentum post 2017, following the introduction of the G500 in 2018, major revenue recognition from Combat Systems’ huge backlog and the Ohio-class Replacement (ORP) submarine program, which should add substantially to the top line by 2019. On the flip side, any slip up in the Trump administration's commitment to raise defense spending remains a headwind for this company as well as many of its peers. Valuation has become an issue as well following its strong post-election showing, with the stock currently trading at a forward 12-month P/E multiple that's the highest since 2002. (You can read the full research report on General Dynamics here >> )

Other noteworthy reports we are featuring today include Union Pacific (NYSE:UNP – Free Report ) and Cintas (NASDAQ: CTAS – Free Report ).

Today's Private Buys & Sells from Zacks Research

While we share the above news with the public, our sensitive recommendations are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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.


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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
 
Philip Morris International Inc (PM): Free Stock Analysis Report
 
McDonald's Corporation (MCD): Free Stock Analysis Report
 
General Dynamics Corporation (GD): Free Stock Analysis Report
 
Union Pacific Corporation (UNP): Free Stock Analysis Report
 
Cintas Corporation (CTAS): Free Stock Analysis Report
 
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Zacks Investment Research