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Research Daily

Sheraz Mian

Top Stock Reports for McDonald's, Amgen & NextEra Energy


Trades from $3

Wednesday, November 29, 2023

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), Amgen Inc. (AMGN) and NextEra Energy, Inc. (NEE). 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 performed roughly in-line with the Zacks Retail - Restaurants industry this year (+6.4% vs. +6.2%). The company’s top and the bottom line increased on a year-over-year basis in the last quarterly report on October 30th. Robust comparable sales, menu price increase and positive guest counts backed the upside.

Also, its emphasis on digital initiatives, campaigns and loyalty programs bodes well. During the quarter, digital sales came in at $9 billion, contributing 40% to the company’s system-wide sales. Given the rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods.

Earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism. However, inflationary pressures and stiff competition are primary headwinds.

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

Shares of Amgen have outperformed the Zacks Medical - Biomedical and Genetics industry over the year-to-date basis (+4.6% vs. -22.9%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters.

The recently completed acquisition of Horizon Therapeutics is expected to enhance Amgen’s growth prospects. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months.

However, increased pricing headwinds and competitive pressure are hurting sales of many of Amgen’s products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds.

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

Shares of NextEra Energy have underperformed the Zacks Utility - Electric Power industry over the year-to-date basis (-28.5% vs. -9.5%). Due to the company’s nature of its business, it is subject to complex regulations. Risks in operating nuclear units, unfavorable weather conditions and increasing supply costs adversely impact earnings.

Nevertheless, NextEra Energy continues to expand its operations through organic projects and acquisitions. The company has many renewable projects in its backlog and continues to enhance its renewable energy generation capacity. NextEra’s subsidiary FPL’s customer base is expanding as Florida’s economy improves.

The company has ample liquidity to meet its near-term debt obligations. It is expanding its operations in the water space through acquisitions. NextEra Energy decided to sell its gas assets in Florida to focus on its core business.

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

Other noteworthy reports we are featuring today include The Cigna Group (CI), General Mills, Inc. (GIS) and Take-Two Interactive Software, Inc. (TTWO).

Director of Research

Sheraz Mian

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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