Tuesday, July 11, 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 The Coca-Cola Company (KO), Toyota Motor Corporation (TM) and McDonald's Corporation (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 >>>

Coca-Cola shares have underperformed rival Pepsi (PEP) (-7.1% vs. +1.4%) as well as the broader market (-7.1% vs. +15.7%) this year. The company is witnessing pressures from higher supply chain costs, higher marketing spends and currency headwinds.

Nevertheless, KO’s results benefited from the continued momentum in its business in the last quarterly release on April 24th. Sales gained from revenue growth across its operating segments, aided by an improved price/mix and a rise in concentrate sales. It is poised to gain from innovations and accelerating digital investments. It provided an upbeat guidance for 2023.

(You can read the full research report on Coca-Cola here >>>)

Shares of Toyota Motor have outperformed the Zacks Automotive - Foreign industry over the past year (+5.9% vs. -0.2%). Continued demand for vehicles and robust product line-up is set to fuel sales volumes of Toyota. To capitalize on the accelerated global shift to green cars, the auto giant is deepening focus on manufacturing electric and fuel-cell vehicles, which will bolster the company’s product competitiveness.

Toyota Motor’s commitment to return capital to shareholders and upbeat fiscal 2024 view spark confidence. However, commodity cost inflation is expected to weigh on gross margins. Supply-chain disruptions and tough labor market will play spoilsports.

Unfavorable foreign currency translations and high R&D expenses are also likely to limit profits. Also, elevated leverage of the firm may restrict its financial flexibility to tap onto growth opportunities. Thus, investors are advised to wait for a better entry point.

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

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past six months (+11.6% vs. +6.8%). The company’s upside is fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs.

McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu, solid marketing and improved pricing are likely to pave the way for additional growth in the upcoming periods. The company is also undertaking efforts to drive growth in international markets.

Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have moved north in the past 30 days, depicting analysts’ optimism over the stock’s growth prospects.

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

Other noteworthy reports we are featuring today include Shopify Inc. (SHOP), Equinix, Inc. (EQIX) and Enbridge Inc. (ENB).

Director of Research

Sheraz Mian

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>>>