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The Zacks Analyst Blog Highlights McDonald's, Automatic Data Processing, Prologis, HSBC and Sony

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For Immediate Release

Chicago, IL – September 13, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald's Corp. (MCD - Free Report) , Automatic Data Processing, Inc. (ADP - Free Report) , Prologis, Inc. (PLD - Free Report) , HSBC Holdings plc (HSBC - Free Report) and Sony Group Corp. (SONY - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Research Reports for McDonald's, ADP and Prologis

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 Corp., Automatic Data Processing, Inc. and Prologis, Inc. 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 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 and Sony Group Corp.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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