Friday, October 6, 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 Tesla, Inc. (TSLA), Salesforce, Inc. (CRM) and McDonald's Corp. (MCD). 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 >>>

Tesla’s shares have outperformed the Zacks Automotive - Domestic industry over the past six months (+40.5% vs. +26.2%). The electric vehicle (EV) giant witnessed record production, deliveries and revenues in the last reported quarter.

Production ramp-up at Gigafactory 4 (in Berlin) and 5 (in Austin) and the introduction of new models, including Semi and Cybertruck, are set to support long-term delivery growth. Additionally, Tesla’s energy generation and storage revenue outlook is promising. Falling debt levels and the solid potential of its charging business are other positives.

However, shrinking margins remain a near-term concern, we expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and the introduction of new models.

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

Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+52.4% vs. +34.7%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.

Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.

However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.

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

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past year (+10.6% vs. +9.6%). The company is benefiting from its strong comparable restaurant sales growth, digital initiatives, campaigns and loyalty programs.

During the second quarter of 2023, digital dales (from the top six markets) came in at $8 billion, contributing 40% to the company’s system-wide sales. Given a rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods. Also, its focus on marketing efforts and pricing strategies bodes well.

Earnings estimates for 2023 have increased in the past 60 days, depicting analysts’ optimism about the stock’s growth potential. However, inflationary pressures and stiff competition are primary headwinds.

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

Other noteworthy reports we are featuring today include Starbucks Corp. (SBUX), Lockheed Martin Corp. (LMT) and Schlumberger Ltd. (SLB).

Mark Vickery
Senior Editor

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>>>