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Research Daily

Monday, October 24, 2016

Today's Research Daily features new research reports on 17 major stocks, including Intel (INTC), Microsoft (MSFT), McDonald’s (MCD) and Schlumberger (SLB).

Intel shares have lost ground following the quarterly release, where they handily beat top- and bottom-line estimates and showed solid gains all business areas, but guidance came as a disappointment, particularly with respect to margins as well as capex. The market's reaction notwithstanding, the Zacks analyst likes the momentum in the data center group, where macro factors are impacting the enterprise side even as cloud prospects remain strong. Buy-rated Intel’s investments in IoT, security and memory could also pay off this year. (You can read the full research report on Intel here>>)

Market participants loved Microsoft’s impressive cloud-driven quarterly earnings report. The analyst likes the software major’s continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products. Additionally, the expansion of Microsoft HoloLens in 6 new markets will improve the company's position in the augmented and virtual reality space. Further, the completion of the LinkedIn acquisition will boost Microsoft's presence in the social media market. (You can read the full research report on Microsoft here>>)

McDonald’s shares have struggled lately as a result fo the tough operating environment for the restaurant space in general; the entire space has been struggling lately. However, the fast food giant reported encouraging third-quarter adjusted earnings on the back of strong comps growth. The analyst likes the manner in which the company is trying to strengthen its position via various sales and digital initiatives like menu innovation and introduction of value meals. However, higher labor costs, along with currency headwinds, might hurt profits. (You can read the full research report on McDonald’s here>>)

Schlumberger shares have done reasonably well this year on the back of momentum in oil prices, but it has lagged Halliburton and other U.S. centric operators given its relatively lower footprint in the region. These issues notwithstanding, the analyst likes the Schlumberger-Cameron merger, which will support technology-driven growth going forward. However, the recent prediction by the OPEC and IEA of an oversupplied crude market till 2017 raises concerns. (You can read the full research report on Schlumberger here>>)

Other noteworthy reports we are featuring today include American Express (AXP), General Electric (GE) and Harley-Davidson’s (HOG).

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You can find all of today's stock research reports here>>

Sheraz Mian

Director of Research

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