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 Home Depot, McDonald's, Comcast and Tile Shop
Read MoreHide Full Article
For Immediate Release
Chicago, IL – November 5, 2024 – 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: The Home Depot, Inc. (HD - Free Report) , McDonald's Corp. (MCD - Free Report) , Comcast Corp. (CMCSA - Free Report) and Tile Shop Holdings, Inc. (TTSH - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Home Depot, McDonald's and Comcast
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 Home Depot, Inc., McDonald's Corp. and Comcast Corp., as well as a micro-cap stock Tile Shop Holdings, Inc.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Shares of Home Depot have gained +15.1% over the year-to-date period against the Zacks Building Products - Retail industry's gain of +16.7%. The company gains from its "One Home Depot" plan focused on expanding supply chain facilities, technology and improving the digital experience.
The interconnected retail strategy and strong technology infrastructure have consistently boosted web traffic in recent quarters. HD is also advancing investments to build a Pro ecosystem. HD's sales saw modest recovery in second-quarter fiscal 2024 driven by contributions from the recent SRS acquisition.
However, Home Depot's stock has lagged the industry in the past three months due to higher interest rates and macroeconomic uncertainty, dampening consumer demand for home improvement. While Home Depot exceeded sales and EPS estimates in the fiscal second-quarter, EPS declined year over year. Inflationary pressures, including lumber prices, continue to hurt financial performance.
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past six months (+12.2% vs. +8.5%). The company reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. The company is benefiting from technological enhancements, unit expansion and a loyalty program.
McDonald's is focusing on menu innovation, as it believes that the strengthening of the core menu and solid marketing are likely to pave the way for additional growth in the upcoming periods. Also, the emphasis on the Accelerating the Arches strategy bodes well.
Earnings estimates for 2024 have increased in the past 30 days, depicting analysts' optimism regarding the stock growth potential. However, dismal comps, macroeconomic challenges and elevated commodity and wage costs are headwinds.
Shares of Comcast have outperformed the Zacks Cable Television industry over the year-to-date period (+2.0% vs. -0.5%). The company is benefiting from continued momentum in domestic wireless subscribers and Peacock, offset by a declining broadband subscriber base. The company's plan to transition to DOCSIS 4.0 is noteworthy.
The technology will expand it much faster and at a lower cost compared with its competitors. Decreasing programming and production costs bode well for Comcast's profitability. Its streaming service, Peacock, is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, the company persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless and fiber businesses. Additionally, a leveraged balance sheet is a major concern for the company.
Tile Shop's shares have gained +32.2% over the past year against the Zacks Building Products - Retail industry's gain of +37.3%. This microcap company with market capitalization of $304.07 million have seen strong liquidity, with $25.3 million in cash and no debt, along with a $75 million credit line, provides financial stability.
E-commerce growth of more than 25% underscores successful digital investments, while the Superior private label brand bolstered professional customer engagement and enhanced market penetration.
However, a 6.9% decline in comparable store sales, rising selling, general and administrative (SG&A) expenses, and a 75.9% decline in net income to $1.2 million raise concerns about sustained profitability. Persistent margin erosion and declining cash flow may pressure the stock amid a tough retail environment.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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 Home Depot, McDonald's, Comcast and Tile Shop
For Immediate Release
Chicago, IL – November 5, 2024 – 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: The Home Depot, Inc. (HD - Free Report) , McDonald's Corp. (MCD - Free Report) , Comcast Corp. (CMCSA - Free Report) and Tile Shop Holdings, Inc. (TTSH - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Top Stock Reports for Home Depot, McDonald's and Comcast
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 Home Depot, Inc., McDonald's Corp. and Comcast Corp., as well as a micro-cap stock Tile Shop Holdings, Inc.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
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 >>>
Shares of Home Depot have gained +15.1% over the year-to-date period against the Zacks Building Products - Retail industry's gain of +16.7%. The company gains from its "One Home Depot" plan focused on expanding supply chain facilities, technology and improving the digital experience.
The interconnected retail strategy and strong technology infrastructure have consistently boosted web traffic in recent quarters. HD is also advancing investments to build a Pro ecosystem. HD's sales saw modest recovery in second-quarter fiscal 2024 driven by contributions from the recent SRS acquisition.
However, Home Depot's stock has lagged the industry in the past three months due to higher interest rates and macroeconomic uncertainty, dampening consumer demand for home improvement. While Home Depot exceeded sales and EPS estimates in the fiscal second-quarter, EPS declined year over year. Inflationary pressures, including lumber prices, continue to hurt financial performance.
(You can read the full research report on Home Depot here >>>)
McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past six months (+12.2% vs. +8.5%). The company reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. The company is benefiting from technological enhancements, unit expansion and a loyalty program.
McDonald's is focusing on menu innovation, as it believes that the strengthening of the core menu and solid marketing are likely to pave the way for additional growth in the upcoming periods. Also, the emphasis on the Accelerating the Arches strategy bodes well.
Earnings estimates for 2024 have increased in the past 30 days, depicting analysts' optimism regarding the stock growth potential. However, dismal comps, macroeconomic challenges and elevated commodity and wage costs are headwinds.
(You can read the full research report on McDonald's here >>>)
Shares of Comcast have outperformed the Zacks Cable Television industry over the year-to-date period (+2.0% vs. -0.5%). The company is benefiting from continued momentum in domestic wireless subscribers and Peacock, offset by a declining broadband subscriber base. The company's plan to transition to DOCSIS 4.0 is noteworthy.
The technology will expand it much faster and at a lower cost compared with its competitors. Decreasing programming and production costs bode well for Comcast's profitability. Its streaming service, Peacock, is a key catalyst in driving broadband sales. Strong free cash flow generation ability is noteworthy.
However, the company persistently suffers from video-subscriber attrition due to cord-cutting. Moreover, broadband prospects are suffering from increased competition from fixed wireless and fiber businesses. Additionally, a leveraged balance sheet is a major concern for the company.
(You can read the full research report on Comcast here >>>)
Tile Shop's shares have gained +32.2% over the past year against the Zacks Building Products - Retail industry's gain of +37.3%. This microcap company with market capitalization of $304.07 million have seen strong liquidity, with $25.3 million in cash and no debt, along with a $75 million credit line, provides financial stability.
E-commerce growth of more than 25% underscores successful digital investments, while the Superior private label brand bolstered professional customer engagement and enhanced market penetration.
However, a 6.9% decline in comparable store sales, rising selling, general and administrative (SG&A) expenses, and a 75.9% decline in net income to $1.2 million raise concerns about sustained profitability. Persistent margin erosion and declining cash flow may pressure the stock amid a tough retail environment.
(You can read the full research report on Tile Shop here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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.