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The Zacks Analyst Blog Highlights: Verizon, McDonald's, Lockheed Martin, Capital One and Dollar Tree

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For Immediate Release

Chicago, IL – July 2, 2019 – 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: Verizon (VZ - Free Report) , McDonald’s (MCD - Free Report) , Lockheed Martin (LMT - Free Report) , Capital One (COF - Free Report) and Dollar Tree (DLTR - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Verizon, McDonald’s and Lockheed Martin

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 Verizon, McDonald’s and Lockheed Martin. 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 >>>

Verizon’s shares have gained +13.3% in the past year, outperforming the Zacks Wireless National industry’s increase of +8.7% during the same period. The Zacks analyst thinks that Verizon is well positioned to benefit from the impending 5G boom, driven by healthy traction in the wireless business.

The telecom giant is seeking first mover advantage in the 5G race with the launch of commercial 5G smartphones, in collaboration with Samsung. Focus on online content delivery, mobile video and online advertising will likely drive future growth. Furthermore, the company has upped the ante against its rivals by launching 5G Ultra Wideband network in Chicago, Minneapolis, and in select locations of Denver and Providence.

However, it continues to struggle in a competitive U.S. wireless market. The company's wireline division is struggling with losses in access lines due to competitive pressure from VoIP service providers. Verizon is spending heavily on promotion and lucrative discounts to woo customers, which weighs on its margins.

Shares of McDonald’s have gained +10.2% in the past three months, outperforming the Zacks Restaurants industry, which has increased +8.7% over the same period. The Zacks analyst thinks that its various sales and digital initiatives as well as positive comparable sales bode well.

Furthermore, global comps at McDonald’s have been positive over the trailing 15 quarters. The company’s increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should boost its performance. These apart, efforts to drive growth in international markets are encouraging. However, high labor costs and currency headwinds remain concerns.

Additionally, revenues have been under pressure for quite some time due to strategic refranchising initiatives. Even its heightened focus on refranchising might reduce capital requirements and facilitate EPS growth. McDonald’s margins have been under pressure.

Lockheed Martin’s shares have gained +21.5% in the past year, outperforming the Zacks Aerospace Defense industry which has gained +8.4% over the same period. The Zacks analyst thinks that Lockheed Martin, being the largest defense contractor in the world, enjoys strong demand for its high-end military equipment in domestic and international markets.

As a result, solid order growth has been a key catalyst for the company. F-35 continues to be a major revenue contributor. Of late, the company is witnessing increased demand for its THAAD missiles from the Kingdom of Saudi Arabia.

However, the company’s higher debt-to-equity ratio shows that the stock is highly leveraged when compared to its industry, and thus bears higher chance of insolvency. Lockheed Martin also faces intense global competition for its broad portfolio of products and services. Higher cost expenditure related to the F-35 program may also hurt growth trajectory.

Other noteworthy reports we are featuring today include Capital One and Dollar Tree.

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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