Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Verizon Communications, McDonald's, TOTAL, Broadcom and UPS

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 6, 2019 – 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: Verizon Communications Inc. (VZ - Free Report) , McDonald's (MCD - Free Report) , TOTAL , Broadcom (AVGO - Free Report) and UPS (UPS - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Top Analyst Reports for Verizon, McDonald’s and TOTAL

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 Verizon Communications Inc., McDonald's and TOTAL. 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 >>>

Verizon’s shares have outperformed the Zacks Wireless National industry year to date (19.1% vs. 6.5%). The Zacks analyst believes that Verizon has embarked on a new operating structure with Verizon 2.0 that aims to align the business model with evolving customer needs.

Focus on online content delivery, mobile video and online advertising will likely drive future growth. Verizon aims to cut costs through employee reduction and divestments as it ramps up investment in its next-generation 5G network, which is expected to be the next growth driver. The company has also upped the ante against rivals by launching 5G Ultra Wideband network in select locations of the country.

However, it continues to struggle in a competitive U.S. wireless market. The company's wireline division is struggling with losses in access lines due to competitive pressure from VoIP service providers. Verizon is spending heavily on promotion and lucrative discounts to woo customers, which contracts margins.

Shares of McDonald's have lost 5.1% in the past six months against the Zacks Restaurants industry’s decline of 2.1%. The Zacks analyst believes that the company’s increased focus on delivery and accelerated deployment of EOTF restaurants in the United States is an added positive. These apart, efforts to drive growth in international markets are encouraging.

In second-quarter 2019, the company posted mixed results, wherein earnings missed the estimate but revenues beat the same. Notably, its various sales and digital initiatives as well as positive comps bode well. Furthermore, global comps at McDonald’s have been positive over the trailing 16 quarters.

However, high labor costs and currency headwinds woes linger. Additionally, revenues have been under pressure for quite some time. Even its heightened focus on refranchising might cut the capital requirements and facilitate EPS growth. 

TOTAL’s shares have gained 10.4% over the past three months against the Zacks International Integrated Oil industry’s rise of 3.1%. The Zacks analyst believes that Ongoing fluctuation in the commodity prices is hurting the company despite growth in production volumes.

TOTAL's operations in some politically-troubled regions and increasing competition might impact the company’s profitability. Due to its global presence, it is exposed to risks associated with pursuing business abroad. However, TOTAL continues to benefit from strong contribution from new startups and expanding upstream portfolio that has above industry-average exposure to the faster-growing hydrocarbon producing regions of the world.

Cost reduction initiatives will boost the margins of the company. Strategic acquisitions and divestment of assets that are not in sync with its long-term objectives are going to boost performance of the company.

Other noteworthy reports we are featuring today include Broadcom and UPS.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

 Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                   

http://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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Published in