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The Zacks Analyst Blog Highlights: McDonald's, Coca-Cola, T-Mobile, PPG Industries And Corning

Published 04/26/2017, 09:30 PM
Updated 07/09/2023, 06:31 AM

For Immediate Release

Chicago, IL – April 27, 2017 – 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 (NYSE: MCD Free Report ), Coca-Cola (NYSE: KO Free Report ), T-Mobile (NASDAQ: TMUS Free Report ), PPG Industries (NYSE:PPG) (NYSE: PPG Free Report ) and Corning (NYSE: GLW Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Wednesday’s Analyst Blog:

Top Research Reports for Today: MCD, KO, TMUS

Today's Research Daily features new research reports on 16 major stocks, including McDonald's (NYSE: MCD Free Report ), Coca-Cola (NYSE:KO Free Report ) and T-Mobile (NASDAQ: TMUS Free Report ).

McDonald's shares have gained +26.4% over the last six months easily outperforming many of its peers which have been struggling to survive the restaurant space’s tough operating environment lately. McDonald’s Q1 earnings and revenues exceeded expectations, but revenues fell year over year mainly due to the impact of refranchising.

Meanwhile, the company recorded the seventh consecutive quarter of global comps growth. The Zacks analyst likes the company’s attempts to attract customers in international lead markets as the positive global comps over the past 7 quarters show. Increased focus on refranchising will cut the company’s capital requirements and facilitate EPS growth and ROE expansion over the long-term. On the flip side, higher labor costs, currency headwinds and concerns about the efficiencies of an ever expanding menu remain issues. (You can read the full research report on McDonald's here. )

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Shares of Coca-Cola have gained +3.9% in the year-to-date period underperforming the Zacks Consumer Staples sector as a whole, which has gained +8.4%. Coca-Cola failed to meet earnings expectations in the first quarter of 2017. Earnings also decreased year over year due to higher costs related to refranchising efforts in Coca-Cola's North America bottling operations.

Further, Coca-Cola's total sales fell 11%, marking the eighth consecutive quarterly decline in revenue. But the Zacks analyst likes the company’s efforts in boosting its current productivity and reinvestment program that is expected to generate an incremental $800 million in annualized savings by 2019.

This brings the total annualized savings target of its six-year program to $3.8 billion. Though refranchising efforts will hurt sales/profits in the near term, the company will see higher operating margins, lower capital spending, and improved return on invested capital in the long run. (You can read the full research report on Coca-Cola here. )

T-Mobile shares have been strong performers lately - the stock is up +69.6% over the last 12 months, handily outperforming the Zacks National Wireless industry (up +5%) and the broader Zacks Telecom Services industry (down -0.4%). T-Mobile US posted strong first quarter 2017 financial results with net customer additions of 1.142 million.

Driving this outperformance is the success of the carrier's cultivation of an 'insurgent' persona through promotional measures like the 'Un-carrier' initiatives. Being the fourth national carrier, the company regularly gets mentioned in industry consolidation rumors, which helps the stock price.

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The Zacks analyst also likes the company's network expansion plans such as 5G trials with Ericsson (BS:ERICAs) as well as 4G LTE network improvement and expansion. On the flip side, T-Mobile US operates in a highly competitive and saturated wireless market where it has to work hard to maintain its growth momentum. (You can read the full research report on T-Mobile here. )

Other noteworthy reports we are featuring today include PPG Industries (NYSE:PPG Free Report ) and Corning (NYSE:GLW Free Report ).

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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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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McDonald's Corporation (NYSE:MCD

Coca-Cola Company (The) (NYSE:KO

T-Mobile US, Inc. (TMUS): Free Stock Analysis Report

PPG Industries, Inc. (PPG): Free Stock Analysis Report

Corning Incorporated (NYSE:GLW

Original post

Zacks Investment Research

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