Thursday, May 4, 2023

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 McDonald's Corporation (MCD), Deere & Company (DE) and Marsh & McLennan Companies, Inc. (MMC). 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 McDonald's have performed in-line with the Zacks Restaurants Industry in the year-to-date period (+12% vs. +12.5%), but have outperformed the S&P 500 index (+7.1%). The company’s top and the bottom line increased on a year-over-year basis in the March-quarter report on April 25th. The upside was fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs.

McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu and solid marketing are likely to pave the way for additional growth in the upcoming periods.

The company is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have increased in the past 30 days.

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

Deere shares have outperformed the Zacks Manufacturing - Farm Equipment industry over the past year (+1.0% vs. +0.2%). The company is witnessing solid growth in order levels, which is expected to aid its top-line performance in the forthcoming quarters. Strong replacement demand will also continue to boost the company's results.

Demand for its construction equipment will likely benefit from anticipated growth in infrastructure investments in the United States. Improved prices will help negate the impact of high material and labor costs on the company's margins. The earnings estimates for the company for the ongoing quarter and fiscal year have undergone positive revisions lately.

Product launches equipped with the latest technology to make farming automated will continue to provide Deere with an edge over its competitors. The company is poised to benefit in the long run from rapid growth in global population as well as the rising worldwide infrastructure needs.

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

Shares of Marsh & McLennan have outperformed the Zacks Insurance - Brokerage industry over the past six months (+10.7% vs. +7.7%). The company is well-poised to grow on the back of acquisitions made within its operating units, the launch of new products and branching out into new businesses. Its increased stake in Marsh India will further buoy growth.

Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Zacks analyst expects the top line to grow 4.6% year over year in 2023. The Risk and Insurance Services unit has been contributing to revenue growth for a while. MMC had around $4 billion left under authorization as of Mar 31, 2023.

However, high operating costs might weigh on the margins. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.

(You can read the full research report on Marsh & McLennan here >>>)

Other noteworthy reports we are featuring today include Vertex Pharmaceuticals Incorporated (VRTX), Uber Technologies, Inc. (UBER) and Colgate-Palmolive Company (CL).

Director of Research

Sheraz Mian

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>>>