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>>>