Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights Tesla, Broadcom, McDonald's, Automatic Data Processing and CSX

Read MoreHide Full Article

For Immediate Release

Chicago, IL – February 8, 2024 – 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: Tesla, Inc. (TSLA - Free Report) , Broadcom Inc. (AVGO - Free Report) , McDonald's Corp. (MCD - Free Report) , Automatic Data Processing, Inc. (ADP - Free Report) and CSX Corp. (CSX - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

Top Stock Reports for Tesla, Broadcom and McDonald's

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., Broadcom 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 >>>

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 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. and CSX Corp.

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

Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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.

Published in