Today's Must Read
High Speed Internet Subscriber Gain Benefits Comcast (CMCSA)
Loyalty Program to Aid McDonald's (MCD), Traffic Woes Stay
Thursday, October 14, 2021
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including Visa Inc. (V), Comcast Corp. (CMCSA), 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 Visa have outperformed the Zacks Financial Transaction Services industry in the year to date period (+5.8% vs. -14.7%). The Zacks analyst believes that numerous acquisitions and alliances have paved the way for long-term growth and have consistently driven Visa’s revenues.
The shift in payments to the digital mode has proved to be a boon for the company. The coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding business volumes in turn.
The company remains committed to boost its shareholder value on the back of a strong cash position. High operating expenses, however, stress its operating margins. Ramped-up client incentives are also likely to dent the top line.
Comcast shares have gained +21.1% over the past year against the Zacks Cable Television industry’s gain of +17.4%. The Zacks analyst believes that a steadily growing high-speed Internet user base, solid demand for Xfinity X1 and Flex services and the newly launched Peacock ad-supported streaming service are the key catalysts for growth.
Its strategy to provide high-speed Internet at an affordable price has led to improving customer wins and experience. Pandemic-led increased media consumption, and the resulting work-from-home and online-learning wave bode well for Comcast’s Internet business. The company, however, continues to suffer from video and voice customer loss due to cord-cutting and stiff competition from Netflix.
Shares of McDonald's have gained +8.4% over the past six months against the Zacks Restaurants industry’s gain of +2.4%. The Zacks analyst believes that McDonald's efforts to strengthen its position through various sales initiatives bode well.
The company's increased focus on drive-thru, delivery & take-away is another major tailwind. McDonald’s launched its first-ever loyalty program in the United States. More than 80% of the company’s restaurants across 100 markets globally provide delivery. It has been making every effort to drive growth in international markets. The company’s results in the upcoming quarters, however, are likely to be impacted by the pandemic-related woes.
Other noteworthy reports we are featuring today include Intercontinental Exchange, Inc. (ICE), Barclays PLC (BCS) and State Street Corp. (STT).
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>>>