We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Caterpillar, salesforce.com, McDonald's, Visa and Honeywell International
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 12, 2023 – 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: Caterpillar Inc. (CAT - Free Report) , salesforce.com inc. (CRM - Free Report) , McDonald's Corp. (MCD - Free Report) , Visa Inc.'s (V - Free Report) and Honeywell International Inc. (HON - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Will the Dow Regain Momentum in 2H23?
U.S. stock markets rallied in the first half of 2023, after wrapping up 2022 as the worst year since 2008 and terminating a three-year winning streak. Large cap-centric indexes like the S&P 500 and the Nasdaq Composite rallied 15.9% and 31.7%, respectively. The small cap -centric Russell 2000 and the mid cap-centric S&P 400 advanced more than 5% and 7%, respectively. However, the blue-chip Dow gained only 3.8%.
Importantly, the first-half rally was primarily driven by growth stocks like technology, communication services and consumer discretionary. These stocks have a relatively low weight in Dow rather than the S&P 500 and Nasdaq Composite. The cyclical stocks, which have more weight in Dow, did not participate in the rally.
However, the situation is likely to change in the second half. At present, cyclical stocks are undervalued. Technically, at its current level of 33,944.40, the Dow is well above its 50-day and 200-day moving averages of 33,662.29 and 32,992.06, respectively.
The 50-day moving average line is generally recognized as a short-term trendsetter in financial literature, while the 200-day moving average is considered a long-term trend setter. Historically it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the index becomes a strong possibility.
Our Top Picks
Defying a tepid Dow, we have narrowed our search to five blue-chip (components of Dow) stocks with strong potential for 2023. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Caterpillar Inc. has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply-chain snarls and cost pressures. We expect the company's adjusted earnings per share for 2023 to grow 19% and revenues to rise 7%.
Zacks Rank #2 Caterpillar has an expected revenue and earnings growth rate of 10.2% and 28.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days.
salesforce.com inc. is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for CRM's products. CRM's sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Zacks Rank #1 salesforce.com has an expected revenue and earnings growth rate of 10.5% and 42%, respectively, for the current year (January 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
McDonald's Corp. continues to impress investors with robust comps growth. MCD's increased focus on menu innovation and loyalty program expansion is commendable. MCD is also undertaking every effort to drive growth in international markets. Robust digitalization is likely to help McDonald's in driving long-term growth and capture market share. MCD plans to open more than 1,900 restaurants globally in 2023.
Zacks Rank #2 McDonald's has an expected revenue and earnings growth rate of 7.7% and 9.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days.
Visa Inc.'s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying V's position in the payments market. A shift in payments to the digital mode is a boon. Backed by a strong cash position, Visa remains committed to boosting its shareholder value through share buybacks and dividend payments.
Zacks Rank #2 Visa has an expected earnings growth rate of 11% and 14.5%, respectively, for the current year (September 2023). The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days.
Honeywell International Inc. is benefiting from a recovery in commercial flight hours and strength in advanced materials and UOP businesses. Solid operational execution, pricing actions and cost-control measures continue to drive HON's top line. The company's bullish forecast for 2023 holds promise. HON's deal to acquire Compressor Controls will be beneficial going forward.
Zacks Rank #2 Honeywell International has an expected revenue and earnings growth rate of 3.2% and 3.6%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.1% over the last 30 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Caterpillar, salesforce.com, McDonald's, Visa and Honeywell International
For Immediate Release
Chicago, IL – July 12, 2023 – 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: Caterpillar Inc. (CAT - Free Report) , salesforce.com inc. (CRM - Free Report) , McDonald's Corp. (MCD - Free Report) , Visa Inc.'s (V - Free Report) and Honeywell International Inc. (HON - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Will the Dow Regain Momentum in 2H23?
U.S. stock markets rallied in the first half of 2023, after wrapping up 2022 as the worst year since 2008 and terminating a three-year winning streak. Large cap-centric indexes like the S&P 500 and the Nasdaq Composite rallied 15.9% and 31.7%, respectively. The small cap -centric Russell 2000 and the mid cap-centric S&P 400 advanced more than 5% and 7%, respectively. However, the blue-chip Dow gained only 3.8%.
Importantly, the first-half rally was primarily driven by growth stocks like technology, communication services and consumer discretionary. These stocks have a relatively low weight in Dow rather than the S&P 500 and Nasdaq Composite. The cyclical stocks, which have more weight in Dow, did not participate in the rally.
However, the situation is likely to change in the second half. At present, cyclical stocks are undervalued. Technically, at its current level of 33,944.40, the Dow is well above its 50-day and 200-day moving averages of 33,662.29 and 32,992.06, respectively.
The 50-day moving average line is generally recognized as a short-term trendsetter in financial literature, while the 200-day moving average is considered a long-term trend setter. Historically it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the index becomes a strong possibility.
Our Top Picks
Defying a tepid Dow, we have narrowed our search to five blue-chip (components of Dow) stocks with strong potential for 2023. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Caterpillar Inc. has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply-chain snarls and cost pressures. We expect the company's adjusted earnings per share for 2023 to grow 19% and revenues to rise 7%.
Zacks Rank #2 Caterpillar has an expected revenue and earnings growth rate of 10.2% and 28.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days.
salesforce.com inc. is benefiting from a robust demand environment as customers are undergoing a major digital transformation. The rapid adoption of its cloud-based solutions is driving demand for CRM's products. CRM's sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Zacks Rank #1 salesforce.com has an expected revenue and earnings growth rate of 10.5% and 42%, respectively, for the current year (January 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days.
McDonald's Corp. continues to impress investors with robust comps growth. MCD's increased focus on menu innovation and loyalty program expansion is commendable. MCD is also undertaking every effort to drive growth in international markets. Robust digitalization is likely to help McDonald's in driving long-term growth and capture market share. MCD plans to open more than 1,900 restaurants globally in 2023.
Zacks Rank #2 McDonald's has an expected revenue and earnings growth rate of 7.7% and 9.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last seven days.
Visa Inc.'s numerous buyouts and alliances paved the way for long-term growth and consistently drove its revenues. Constant investments in technology are solidifying V's position in the payments market. A shift in payments to the digital mode is a boon. Backed by a strong cash position, Visa remains committed to boosting its shareholder value through share buybacks and dividend payments.
Zacks Rank #2 Visa has an expected earnings growth rate of 11% and 14.5%, respectively, for the current year (September 2023). The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days.
Honeywell International Inc. is benefiting from a recovery in commercial flight hours and strength in advanced materials and UOP businesses. Solid operational execution, pricing actions and cost-control measures continue to drive HON's top line. The company's bullish forecast for 2023 holds promise. HON's deal to acquire Compressor Controls will be beneficial going forward.
Zacks Rank #2 Honeywell International has an expected revenue and earnings growth rate of 3.2% and 3.6%, respectively, for the current quarter (ending September 2023). The Zacks Consensus Estimate for current-quarter earnings has improved 0.1% over the last 30 days.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.