UK markets close in 4 hours 25 minutes
  • FTSE 100

    7,015.25
    -5.70 (-0.08%)
     
  • FTSE 250

    17,661.35
    -61.48 (-0.35%)
     
  • AIM

    826.95
    -0.94 (-0.11%)
     
  • GBP/EUR

    1.1220
    +0.0110 (+0.99%)
     
  • GBP/USD

    1.0799
    +0.0116 (+1.08%)
     
  • BTC-GBP

    18,715.20
    +951.44 (+5.36%)
     
  • CMC Crypto 200

    461.87
    +28.77 (+6.64%)
     
  • S&P 500

    3,655.04
    -38.19 (-1.03%)
     
  • DOW

    29,260.81
    -329.60 (-1.11%)
     
  • CRUDE OIL

    77.79
    +1.08 (+1.41%)
     
  • GOLD FUTURES

    1,644.70
    +11.30 (+0.69%)
     
  • NIKKEI 225

    26,571.87
    +140.32 (+0.53%)
     
  • HANG SENG

    17,860.31
    +5.17 (+0.03%)
     
  • DAX

    12,321.97
    +94.05 (+0.77%)
     
  • CAC 40

    5,812.07
    +42.68 (+0.74%)
     

The Zacks Analyst Blog Highlights Roche Holding, Adobe, McDonald, Deere & Co and BP p.l.c

·6-min read

For Immediate Release

Chicago, IL – August 10, 2022 – 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: Roche Holding AG RHHBY, Adobe Inc. ADBE, McDonald's Corp. MCD, Deere & Co. DE, and BP p.l.c. BP.

Here are highlights from Tuesday’s Analyst Blog:

Q2 Earnings Scorecard and Analyst Reports for Roche, Adobe & McDonald's

The Zacks Research Daily presents the best research output of our analyst team. Today's note includes a real-time scorecard of the Q2 earnings season, in addition to featuring new research reports on 16 major stocks, including Roche Holding AG, Adobe Inc., and McDonald's Corp.. 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 >>>

Q2 Earnings Season Scorecard We now have Q2 results from 448 S&P 500 members or 89.6% of the index's total membership. Total earnings for these 448 companies are up +8.1% from the same period last year on +15.3% higher revenues, with 77.2% beating EPS estimates and 68.3% beating revenue estimates.

The beats percentages have been less frequent this earnings season relative to other recent periods.

Looking at Q2 as a whole, combining the actuals that have come out with estimates for the still-to-come companies,  earnings and revenues are on track to be up +6.9% and +14% from the year-earlier levels, respectively. Excluding contribution from the Energy sector,

Q2 earnings for the rest of the index would be down -3.4%. On the other hand, the Q2 earnings growth pace improves to +14.1% once the Finance sector's drag is removed.

Estimates for the current period (2022 Q3) have come down lately, with the current +2.5% earnings growth rate down from +7.2% in early July. On an ex-Energy basis, Q3 earnings are currently expected to be down -4%, which represents a decline from +2.1% on July 6th.

Today's Featured Analyst Reports

Roche Holding shares have declined -15.2% over the past year against the Zacks Large Cap Pharmaceuticals industry's decline of +7.4%. The Zacks analysts believes that the demand for COVID-19 tests is expected to decline in the second half, and this will adversely impact the Diagnostics division, which recorded solid growth last year.

Nevertheless, growth of routine business excluding COVID tests should maintain momentum. Competition is stiff for Tecentriq and incremental market share gains will be tough. The decline in sales of drugs like Herceptin, Avastin and MabThera will continue to drag sales.

However, the pharmaceuticals business remained stable and newer drugs continued to offset the decline in sales of legacy drugs. Strong demand for new drugs, namely Hemlibra (hemophilia), Ocrevus (multiple sclerosis), Evrysdi (spinal muscular atrophy), Phesgo (cancer) and Tecentriq (cancer) maintains momentum.

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

Adobe shares have declined -30.3% over the past year against the Zacks Computer - Software industry's decline of -9.3%. The Zacks analyst believes that lower end-market demand, particularly in Europe, and high acquisition expenses remain major overhangs. Nevertheless, Adobe is benefiting from strong demand for its cloud products. The company's Creative Cloud, Document Cloud and Adobe Experience Cloud products are helping it drive top-line growth.

Additionally, rising subscription revenues and solid momentum across the mobile apps remain major positives. Further, growth in emerging markets, robust online video creation demand, strong Acrobat adoption and improving average revenue per user remain tailwinds.

However, we remain optimistic about Adobe's market position, compelling product lines, persistent innovation and solid adoption of Creative Cloud and Adobe marketing cloud. Further, the company's strong balance sheet remains another positive.

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

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+12.4% vs. -12.4%). The company reported mixed second-quarter 2022 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line fell year over year, while the bottom line increased on a year-over-year basis.

McDonald's increased focus on menu innovation and loyalty program expansion is commendable. The company is also undertaking every effort to drive growth in international markets. Robust digitalization will help the company in driving long-term growth and capturing market share.

However, restaurant closures in Russia and Ukraine coupled with inflationary pressures on labor and commodities remain headwinds. The company stated that recovery in China remains challenging due to ongoing COVID resurgences and related lockdowns.

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

Other noteworthy reports we are featuring today include Deere & Co., and BP p.l.c..

Why Haven't You Looked at Zacks' Top Stocks?

Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                       

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.


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
 
Roche Holding AG (RHHBY) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
McDonald's Corporation (MCD) : Free Stock Analysis Report
 
Deere & Company (DE) : Free Stock Analysis Report
 
Adobe Inc. (ADBE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research