Yahoo Finance Top Stock Reports for Tesla, Broadcom & McDonald's
Wednesday, February 7, 2024
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), Broadcom Inc. (AVGO) 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 >>>
Shares of Tesla have declined -8.0% over the past year against the Zacks Automotive - Domestic industry’s decline of -16.7%. The electric vehicle (EV) giant reported record deliveries in the fourth quarter of 2023. Production ramp-up at Gigafactory 4 and 5 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. Robust liquidity and the solid potential of its charging business are other positives. While shrinking margins remain a near-term concern, the Zacks analyst expects 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 >>>)
Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+107.9% vs. +83.2%). The company is benefiting from the strong deployment of generative AI which it expects to contribute more than 25% of semiconductor revenues in fiscal 2024.
VMware is expected to contribute $12 billion to revenues. Infrastructure software revenues are expected to be $20 billion while semiconductor solutions revenues are expected to increase in the mid to high-single-digit percentage range on a year-over-year basis in fiscal 2024.
Broadcom expects networking revenues to grow nearly 30% year over year in fiscal 2024 driven by accelerating deployment of networking connectivity and expansion of AI accelerators in hyperscalers. Wireless revenues are expected to remain stable on a year-over-year basis. However, server storage, broadband, and industrial revenues are expected to decline in fiscal 2024.
(You can read the full research report on Broadcom here >>>)
Shares of McDonald's have outperformed the Zacks Retail - Restaurants industry over the past year (+10.7% vs. +5.6%). The company is benefiting from robust comparable restaurant sales growth, menu price increase and positive guest counts. Also, its emphasis on digital initiatives, marketing efforts, campaigns and loyalty programs bodes well.
During the third quarter of 2023, digital sales (from the top six markets) came in at $9 billion, contributing 40% to the company’s system-wide sales. Given the rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods.
Earnings estimates for 2024 have increased in the past 30 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 Automatic Data Processing, Inc. (ADP), CSX Corp. (CSX) and Enterprise Products Partners L.P. (EPD).
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) Set to Ride on its Energy Storage Business
Strong Demand for Networking Products Aids Broadcom (AVGO)
McDonald's (MCD) Banks on Strategic Initiatives, High Costs Ail
Featured Reports
Solid Business Model Aids ADP, Escalating Expenses Hurt
The Zacks Analyst is positive about ADP's business model that ensures high recurring revenues, good margins, robust client retention and low capital expenditure. Rising expenses remain a concern.
CSX's Dividend Payouts Boost Prospects Amid Cost Woes
The Zacks analyst is impressed with CSX's efforts to reward its shareholders. However, high operating expenses, mainly due to elevated labor costs, are hurting its bottom line.
Enterprise (EPD) Banks on $7B Midstream Growth Projects
Enterprise is banking on midstream growth projects worth billions, securing additional cashflows. However, high exposure to debt capital concerns the Zacks analyst.
IDEXX (IDXX) Gains From Strategic Execution, FX Woes Remain
The Zacks Analyst is impressed with IDEXX's solid execution against growth strategy driving recurring revenue gains for Companion Animal Group (CAG) Diagnostics arm. Yet, FX impacts remain a concern.
Solid Automotive Market Aids ON Semiconductor (ON) Prospects
Per the Zacks analyst, onsemi is benefiting from solid momentum across industrial, computing, consumer and automotive end-markets.
Willis Towers (WTW) Rides on Buyouts & Strong Balance Sheet
Per the Zacks analyst, a number of buyouts have helped Willis Towers expand its geographical footprint and ramp up product portfolio. Its healthy balance sheet enables it to fulfill debt obligations.
High-quality, Low-cost Coking Coal Aid Arch Resources (ARCH)
Per the Zacks analyst, Arch Resources will gain from the production of high-quality, low-cost coking coal at the new Leer South longwall mine. Its initiative to expand operations will boost margins.
New Upgrades
Clorox (CLX) Benefits From Pricing and Cost-Saving Efforts
Per the Zacks analyst, Clorox is gaining from pricing and cost saving, which have been boosting margins. The company's streamlined operating model also aims at increasing efficiency.
Digital Transformation, Product Strength Aids Nutanix (NTNX)
Per the Zacks analyst, Nutanix is benefiting from higher investments by clients in digital transformation, as well as frequent product refreshes which help it gain new customers.
Dolby (DLB) Gains From Continued Strength in Vision & Atmos
Per the Zacks analyst, Dolby's performance is being cushioned by adoption of Dolby Atmos and Dolby Vision. The company expects these businesses to grow by high single digit in fiscal 2024.
New Downgrades
Halozyme's (HALO) Reliance on Partners for Revenues Concerns
Per the Zacks analyst, Halozyme is highly dependent on its partners for revenues, which is a major concern. Any setback to collaborations or partnered drugs will have an unfavorable impact.
Chevron (CVX) Hurt by Poor reserve replacement Ratio
The Zacks analyst believes that Chevron's (CVX) reserve replacement ratio of just 86% is indicative of its inability to add proved reserves to the amount of oil and gas produced.
Weakness in Fee Income, Strained Margins Hurt Navient (NAVI)
Per the Zacks analyst, Navient's top line is affected by limited servicing fee growth opportunities and strained margins. Also, weak liquidity makes capital distributions seem unsustainable.
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
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
CSX Corporation (CSX) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
McDonald's Corporation (MCD) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
