Today's Must Read
Momentum in PepsiCo's (PEP) Snacking Business to Aid Growth
Robust Comps to Aid McDonald's (MCD), Traffic Woes Stay
Tuesday, May 4, 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 Comcast (CMCSA), PepsiCo (PEP), and McDonald's (MCD). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Comcast have outperformed the Zacks Cable Television industry in the last one-year period (+56.3% vs. +38.3%). The Zacks analyst believes that Comcast is benefiting from solid high-speed Internet customer wins as reflected by its first-quarter results.
Its strategy to provide high-speed Internet at an affordable price plays a pivotal role in providing connectivity and improving customer experience. Moreover, coronavirus-led increased media consumption, and work-from-home and online-learning waves bode well for Comcast’s Internet business.
However, Comcast persistently suffers from video-subscriber attrition due to cord cutting. Theme park revenues are expected to suffer from lower footfall. Further, weakness in film business is also a headwind.
PepsiCo’s shares have gained +3.4% over the last three months against the Zacks Soft Drinks Beverages industry’s gain of +4.2%. The Zacks analyst believes that PepsiCo’s robust fourth quarter results was driven by resilience and strength in the global snacks and foods business as well as gains in the beverage category.
The snacks/food business continued to capitalize on the rise in at-home breakfast and lite snacking trends. However, the company witnessed soft margins on international acquisitions and unforeseen weather-related costs in the United States in February. Also, adverse currency rates remain a headwind.
Shares of McDonald's have gained +8.5% in the past six months against the Zacks Restaurants industry’s gain of +18.9%. The Zacks analyst believes that its increased focus on drive-thru, delivery & take-away is likely to benefit the company.
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 “My McDonald’s”. Additionally, the company is making every effort to drive growth in international markets. However, coronavirus related woes continue to remain a concern.
Other noteworthy reports we are featuring today include QUALCOMM (QCOM), Charter Communications (CHTR) and Caterpillar (CAT).
More Stock News: This Is Bigger than the iPhone!
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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>>>