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Research Daily

Sheraz Mian

Top Research Reports for McDonalds, Automatic Data Processing & Prologis

ADP PLD MCD AMAT HSBC SONY

Trades from $3

Monday, September 12, 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 McDonald's Corporation (MCD), Automatic Data Processing, Inc. (ADP) and Prologis, Inc. (PLD). 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 >>>

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+7.8% vs. -13.8%) and the broader market (-10.3%). Driving this outperformance is the company’s size and track record of operational excellence allows it thrive in good times and bad. The Zacks analyst sees McDonald's increased focus on menu innovation, loyalty program expansion and efforts to drive growth in international markets as helping it sustain the performance momentum.

Robust digitalization will help the company in driving long-term growth and capturing market share. However, restaurant closures in Russia and Ukraine coupled with inflationary pressures on labor and commodities remain headwinds.

The company stated that recovery in China remains challenging due to ongoing COVID resurgences and related lockdowns. It has reported mixed second-quarter 2022 with the top line fell year over year, while the bottom line increased on a year-over-year basis

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

Automatic Data Processing’s shares have outperformed the Zacks Outsourcing industry over the past year (+24.8% vs. +15.1%). The company continues to enjoy a dominant position in the human capital management market through strategic buyouts like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company.

It has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. Further, it continues to innovate, improve operations and invest in its ongoing transformation efforts.

On the flip side, ADP faces significant competition in each of its product lines. Failure to remain technologically updated might reduce the demand for its solutions and services. Rising expenses due to investment in transformation efforts remains a concern. High debt remains a concern.

(You can read the full research report on Automatic Data Processing here >>>)

Prologis shares have declined -0.3% over the past year against the Zacks REIT and Equity Trust - Other industry’s decline of -6.9%. The company’s the rising supply of industrial real estate in several markets might fuel competition. Also, hikes in interest rates might affect its ability to purchase or develop real estate.

However, given Prologis’ capacity to offer high-quality facilities in key markets, it is well-poised to capitalize on the favorable industrial real estate industry trends. Along with the fast adoption of e-commerce, this asset category is set to gain from a likely rise in inventory levels.

Hence, with a healthy operating platform, strategic buyouts and solid balance-sheet strength Prologis is expected to prosper. Prologis’ acquisition of Duke Realty, which is anticipated to materialize in fourth-quarter 2022, will add to the company’s strength and size and drive long-term growth.

(You can read the full research report on Prologis here >>>)

Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), Sony Group Corporation (SONY), and Applied Materials, Inc. (AMAT).

Sheraz Mian
 
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>>>

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