Today's Must Read
McDonald's (MCD) Banks on Digitization, Traffic Woes Stay
LNG Focus, Renewable Assets Additions Aid TOTAL (TOT)
Monday, March 8, 2021
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 Eli Lilly (LLY), McDonald's (MCD) and TOTAL SE (TOT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Eli Lilly shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+52.5% vs. +10.5%), reflecitng the company's favorable revenue growth profile as a result of higher demand for drugs like Trulicity, Taltz, and others.
The company has some intriguing pipeline assets for cancer, diabetes and Alzheimer's that provide boost its growth potential beyond 2025. It also received rapid emergency approvals for bamlanivimab and Olumiant for COVID-19 in 2020. It is regularly adding promising new pipeline assets through business development deals.
However, generic competition for several drugs, rising pricing pressure in the United States mainly on key drug Trulicity, and price cuts in some international markets like China, Japan and Europe are some top-line headwinds.
Shares of McDonald's have lost -3.8% in the last six months against the Zacks Restaurants industry’s gain of +9%. The Zacks analyst, however, believes that the company’s increased focus on drive-thru, delivery & take-away are likely to benefit the company going forward.
In order to boost its digital offerings across drive thru, takeaway, delivery, curbside pick-up and dine-in categories, the company is currently working on a new digital experience growth engine, “MyMcDonald’s”. Additionally, it is making every effort to drive growth in international markets as well.
Although the company has reopened most of its restaurants, it is likely to witness dismal traffic due the social distancing protocols. Moreover, shutdown of dine-in in several markets will continue to hurt the company’s performance.
TOTAL shares have gained +10% over the past three months against the Zacks Integrated International Oil industry’s gain of +22.5%. The Zacks analyst believes that TOTAL is gaining from new startups, LNG portfolio and expanding upstream portfolio that has exposure to fast-growing hydrocarbon producing regions.
Its joint venture in the United States and acquisition of an interest in the renewable business in India are in sync with the goal of becoming net zero by 2050. Streamlining of its portfolio and ongoing investments will strengthen operations, thereby boosting the company’s performance.
It remains exposed to acquisition-related risks as these assets contribute a sizeable volume to production. TOTAL's operations in some politically-troubled regions and increasing competition might affect profitability.
Other noteworthy reports we are featuring today include American Express (AXP), ServiceNow (NOW) and Southern Copper (SCCO).
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Director of Research
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>>>