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Research Daily

Monday, June 20, 2022

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 Apple Inc. (AAPL), NVIDIA Corp. (NVDA) 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 >>>

Apple shares have declined -0.1% over the past year against the S&P 500’s decline of -12.4%. The company expects COVID-induced supply chain disruptions and industry-wide silicon shortages to hurt the top line by $4-8 billion. Unfavorable forex conditions along with the absence of Russian revenues is also expected to hurt the top line.

Nevertheless, Apple is benefiting from continued momentum in the Services and robust performance from iPhone, Mac, Wearables and an expanding App Store ecosystem. Also, the availability of new Mac Studio and new iPad Air is expected to drive top-line growth.

Apple TV+ is gaining recognition due to award-winning shows. This bodes well for the Services segment. Services revenue growth is expected to be in strong double digits for the June quarter.

(You can read the full research report Apple here >>>)

NVIDIA shares have declined -13.8% over the past year against Zacks Semiconductor - General industry’s decline of -19.1%. The company’s management expects COVID-19 pandemic to negatively impact near-term revenues. Moreover, the U.S.-China trade war remains a key concern.

However, NVIDIA is benefiting from the coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive its user base.

Further, a solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space.

(You can read the full research report NVIDIA here >>>)

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+2.8% vs. -20.9%). The company continues to impress investors with robust comps growth. Strong drive-thru presence and its investments in delivery and digitization over the past few years have aided McDonald’s in countering the pandemic. Robust digitalization will help the company in driving long-term growth and capturing market share.

The company is focusing on store expansion. It is planning to open more than 1,800 restaurants globally in 2022. The company is also benefiting from the robust loyalty program. It is very optimistic about building the world’s largest loyalty program.

The loyalty program is likely to drive sales and average checks. However, coronavirus-related woes persist. In the first quarter of 2022, comps in the China market were hurt by the pandemic.

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

Other noteworthy reports we are featuring today include Cisco Systems, Inc. (CSCO), CVS Health Corp. (CVS) and Vertex Pharmaceuticals Inc. (VRTX).

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>>>

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