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The Zacks Analyst Blog Highlights McDonald's, ConocoPhillips, RTX, Merck and Emerson Electric

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For Immediate Release

Chicago, IL – November 10, 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: McDonald’s Corp. (MCD - Free Report) , ConocoPhillips (COP - Free Report) , RTX Corp. (RTX - Free Report) , Merck & Co., Inc. (MRK - Free Report) and Emerson Electric Co. (EMR - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

Top Analyst Reports for McDonald's, ConocoPhillips and RTX

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, ConocoPhillips and RTX Corp. 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 struggled this year, lagging the broader market (+1.4% vs. +15.2% for the S&P 500 index) and the Zacks Restaurants industry (+1.4% vs. +2.9%) on the back of lingering worries about the expected economic slowdown on the fast-food giant's business.

These worries notwithstanding, MacDonald's continues to outperform in operating results, as was more than clear from the company's better-than-expected results on October 30th. The company’s top and the bottom line increased on a year-over-year basis. Robust comparable sales, menu price increase and positive guest counts backed the upside. Also, its emphasis on digital initiatives, campaigns and loyalty programs bodes well.

During the quarter, digital sales came in at $9 billion, contributing 40% to the company’s system-wide sales. Given the rise in digital adoption, the company remains optimistic and anticipates the initiatives to drive sales and average checks in the upcoming periods.

Earnings estimates for 2023 have increased in the past 30 days, depicting analysts’ optimism. However, inflationary pressures and stiff competition are primary headwinds.

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

Shares of ConocoPhillips have outperformed the Zacks Oil and Gas - Integrated - United States industry over the past six months (+16.3% vs. +12.9%). The company has secured a solid production outlook, thanks to its decades of drilling inventories across its low-cost and diversified upstream asset base.

The resource base represents the company’s strong footprint in prolific acres in the United States, comprising Eagle Ford shale, Permian Basin and Bakken shale. Also, the company is better positioned to rely on its strong balance sheet to withstand any adverse business scenario.

However, due to the inflationary market, the company’s overall operating and production expenses continue to increase, hurting the bottom line. ConocoPhillips’ exploration and production activities are exposed to extreme volatility in oil and gas prices, making the overall business scenario of the upstream energy player extremely choppy.

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

Shares of RTX have underperformed the Zacks Aerospace - Defense industry over the past year (-12.9% vs. -11.2%). The Zacks analyst believes that appreciating U.S. dollar has been burdening airlines, which may hurt the stock. Also, removals and inspections of engines from A32neo might increase costs for RTX.

It may also be affected if China enforces its announced sanctions against RTX’s missile and defense unit. Nevertheless, its wide range of combat-proven defense products, RTX continues to receive ample orders from the Pentagon and its foreign allies, which, in turn, bolsters its backlog count.

A steady recovery in commercial air traffic is boosting commercial OEM as well as commercial aftermarket sales for RTX. The stock holds a solid solvency position.

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

Other noteworthy reports we are featuring today include Merck & Co., Inc. and Emerson Electric Co.

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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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