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Top Stock Reports for Facebook, Thermo Fisher & McDonalds

Sheraz Mian

Wednesday, July 01, 2020

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 Facebook (FB), Thermo Fisher Scientific (TMO) and McDonalds (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 >>>

Facebook shares have held their own, despite the ongoing drumbeat of ad boycot announcements, with the stock up +19.1% over the past year vs. the +4.9% gain for the S&P 500 index. The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and an expanding user base in Asia Pacific. In effect, the company has emerged as a must-have platform for advertizers, along with Alphabet, that is hard to ignore. 

The company helped people connect during the coronavirus pandemic. Notably, voice and video calling more than doubled on Messenger and WhatsApp. The launch of Messenger Rooms for video call, which can accommodate 50 people, and WhatsApp video support for up to eight users are noteworthy in this regard.

However, Facebook expects ad-sales to be hurt by weakness in travel and automotive industries. Further, a number of companies have announced plans to freeze ad spending on Facebook due to its failure to eradicate hate speech and misinformation. This is expected to hurt top-line growth, at least in the near term. Higher operating expense is also expected to dent the operating margin in 2020. 

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

Shares of Thermo Fisher have gained +10% over the past six months against the Zacks Medical Instruments industry’s rise of +4.1%. The Zacks analyst is encouraged by the strong year-over-year revenue growth at Life Sciences Solutions and Laboratory Products and Services segments.

The company’s end- market underlying growth performance was strong before the outbreak in China. Meanwhile, the company is optimistic about the progress related to its COVID-19 diagnostic test. In the first quarter, the company reported rapid uptake of these diagnostic kits.

However, the coronavirus outbreak has massively disrupted the global supply chain. Two of the end markets registered loss in the first quarter, largely due to customer shutdowns in China.

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

McDonalds’ shares have gained +14.4% over the past three months against the Zacks Restaurants industry’s rise of +23.8%. The Zacks analyst believes that the company is benefitting from increase in drive-thru sales.

Also, its increased focus on delivery and accelerated deployment of EOTF restaurants in the United States is commendable. Additionally, the company is making every effort to drive growth in international markets as well. Notably, earning estimates for 2020 have increased over the past 60 days, depicting analyst’s optimism regarding the stock growth potential.

However, coronavirus related woes remain a concern. This along with costs associated with brand positioning in all the key markets and ongoing investments in initiatives might weigh on margins, at least in the near term. Also, decline in comps pose threat for the company.  

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

Other noteworthy reports we are featuring today include NIKE (NKE), Royal Dutch Shell (RDS.A) and QUALCOMM (QCOM).

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Sheraz Mian

Director of Research

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>>>

Today's Must Read

Instagram Strength Aids Facebook (FB) Amid Advertiser Exodus

QIAGEN Buy, COVID-19 Tests Launch to Aid Thermo Fisher (TMO)

McDonald's (MCD) Banks on Digitalization, Soft Comps a Worry

Featured Reports

NIKE (NKE) Digital Business Cushions Top Line Amid Pandemic

Per the Zacks analyst, NIKE's digital ecosystem that includes its website as well as commercial and activity apps cushioned the soft sales due to store closures in Q4.

Royal Dutch Shell (RDS.A) to Gain from Growing LNG Demand

The Zacks analyst believes that Shell's position as a major supplier of LNG should help it to improve cash flow.

Qualcomm (QCOM) Rides on Chipset Leadership Amid Pricing Woes

Per the Zacks analyst, Qualcomm is focused on retaining its position in the chipset market and mobile connectivity with cutting-edge technologys.

HIV, Coronavirus Drug Fuel Gilead (GILD) Amid Competition

Per the Zacks analyst, Gilead's HIV franchise maintains momentum on new approvals as HCV business dwindles.

AMD Banks on Strength in Product Portfolio Amid Competition

Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.

Micron (MU) Benefits from Growing Memory-Chip Demand

Per the Zacks analyst, Micron is growing on solid memory-chip demand from data-center operators as the coronavirus crisis has boosted the work-and-learn-from-home and online services trends.

VALE (VALE) to Gain on Higher Iron Prices, Low Debt Levels

Per the Zacks analyst, Vale will benefit from rising iron ore prices due to the imminent demand-supply imbalance as well as lower debt levels.

New Upgrades

Yum China (YUMC) Rides on Menu Innovation and Digital efforts

Per the Zacks analyst, Yum China has been benefiting from continual menu innovation and digitalization initiatives. Also, rise in its digital orders bode well.

Masco (MAS) Banks on Leading Brand Portfolio and Acquisitions

Per the Zacks analyst, Masco benefits from its market leading brand portfolio, inorganic moves and cost-saving initiatives.

Increasing Assets Support Federated's (FHI) Top-Line Growth

Per the Zacks Analyst, Federated's strategic acquisitions have supported asset growth and expansion in market share.

New Downgrades

Coronavirus-Led Restrictions Mar FEMSA's (FMX) Fuel Division

Per the Zacks analyst, FEMSA Comercio's Fuel Division is the most exposed to the current coronavirus situation due to reduced mobility and social distancing which reflected in its Q1 results.

Sluggish Mainstream Products Hurt Amkor Technology (AMKR)

Per the Zacks analyst, coronavirus-led supply chain disruptions are hurting the performance of Amkor Technology's Mainstream product lines.

High R&D Costs, Integration Risks Ails InterDigital (IDCC)

Per the Zacks analyst, high R&D expenses, decline in return on capital and increased capitalized patent costs along with significant integration risks is likely to dent InterDigital's profitability.

Click to get this free report

Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report

Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

NIKE, Inc. (NKE) : Free Stock Analysis Report

McDonalds Corporation (MCD) : Free Stock Analysis Report

Facebook, Inc. (FB) : Free Stock Analysis Report

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