Top Research Reports for McDonald's, Abbott & O'Reilly Automotive

Friday, March 28, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 12 major stocks, including McDonald's Corp. (MCD), Abbott Laboratories (ABT) and O'Reilly Automotive, Inc. (ORLY), as well as a micro-cap stock MIND Technology, Inc. (MIND). 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 >>>

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You can read today's AWS here >>> PCE Levels Steady-to-Warmer; Pre-Markets Down

Today's Featured Research Reports

McDonald's shares have outperformed the Zacks Retail - Restaurants industry year-to-date (+7.2% vs. +3.8%). The company is benefiting from its in-house initiatives like the Accelerating the Arches strategy, menu innovation, value offerings and global expansion strategies. It plans to open approximately 2,200 restaurants globally in 2025, with opening 50,000 restaurants by 2027. 

Earnings estimates for 2025 have moved north in the past seven days, depicting analysts’ optimism about the stock’s growth potential. However, the decline in average checks in the United States and negative comparable sales in the United Kingdom and China are concerning. 

Also, inflationary pressures are still weighing down consumer spending. It expects to witness labor, food, paper and commodity inflation in 2025.

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

Shares of Abbott have outperformed the Zacks Medical - Products industry over the past year (+18.0% vs. +9.0%). The company’s pipeline is unlocking new growth opportunities, supporting the company’s positive momentum and strong growth outlook for 2025. Freestyle Libre, Lingo and Libre Rio CGM devices are on a great trajectory. Alinity, the company’s next-generation suite of systems, is a key driver in the core lab diagnostics business. 

Abbott is optimistic about its latest progress with biosimilars and expects this to significantly boost EPD sales, beginning 2025. Within Nutrition, despite softness in its international pediatric arm, Abbott is regaining market share banking on strong Adult Nutrition business. 

Yet, the significant runoff of COVID-19 testing-related sales is hurting Abbott’s Diagnostics growth. Headwinds such as tough macro conditions and foreign exchange also adds to the worry. 

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

O'Reilly Automotive’s shares have outperformed the Zacks Automotive - Retail and Wholesale - Parts industry over the past year (+24.4% vs. +10.3%). The company has been generating record revenues for 32 consecutive years and the trend is likely to continue on the back of growth in the auto parts market, vehicle longevity, store expansion, a strong distribution network and a customer-centric business model. 

O'Reilly Automotive plans to increase its inventory level for the rest of the year to keep products available in all the markets it serves. However, the company has slashed guidance for comps growth and operating margins due to the unpredictability associated with the fourth quarter. 

It also expects challenges in its DIY business as sales with higher margins have slowed more than expected. The company’s high capex needs to develop advanced superior offerings might limit its cash flows. Thus, the stock warrants a cautious stance.

(You can read the full research report on O'Reilly Automotive here >>>)

Shares of MIND Technology have outperformed the Zacks Technology Services industry over the past year (+27.5% vs. +9.9%). This microcap company with market capitalization of $8.63 million is benefiting from strong revenue growth, reaching $31.8 million for the nine months ended Oct. 31, 2024, driven by a robust $26.2 million backlog and a sales pipeline exceeding twice that amount. Net income of $3 million marks a turnaround from a $1.2 million prior-year loss, reflecting cost efficiencies and restructuring. 

Recurring after market services, which comprise 40% of revenues, provide stable, high-margin income. Gross margins improved to 45%, supported by pricing power, higher-margin product sales and operational efficiencies. A debt-free balance sheet with $3.5 million in cash enhances financial flexibility. 

However, elevated inventory levels pose liquidity risks, and reliance on energy exploration exposes MIND to sector cyclicality. Competition from larger players, geopolitical risks, R&D uncertainties, and slow software adoption present additional challenges.

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

Other noteworthy reports we are featuring today include Equinor ASA (EQNR), DuPont de Nemours, Inc. (DD) and Mettler-Toledo International Inc. (MTD).

Mark Vickery
Senior Editor

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

Accretive Business Plans Aid McDonald's (MCD), High Costs Ail

Market Expansion, EPD Business Growth Aid Abbott (ABT)

International Expansion to Aid O'Reilly Amid Rising Expenses

Featured Reports

Equinor's (EQNR) Strong Project Lineup Fuels Future Growth
Per the Zacks analyst, Equinor's strong project pipeline, including Johan Sverdrup and Northern Lights CCS, drives long-term growth. However, rising costs and high debt could strain profitability.

Productivity Actions, New Products Aid DuPont (DD)
While DuPont faces headwinds from weaker pricing and hefty business separation costs, it should gain from productivity improvement actions and new product launches, per the Zacks analyst.

Mettler-Toledo (MTD) Rides on Solid Process Analytics Demand
Per the Zacks analyst, strong demand for process analytics and analytical instruments is benefiting Mettler-Toledo's prospects.

Loan Growth Supports Huntington (HBAN) Amid Rising Costs
Per the Zacks analyst, Huntington's accelerated loan growth, along with a rise in deposit balance, supports its financials. Yet, rising costs are concerning.

Air Lease (AL) Benefits From Fleet Growth Amid Rising Costs
The Zacks Analyst is impressed with the fact that constant fleet growth is aiding Air Lease's (AL) top line. However, rising operating expenses might weigh on its bottom line.

New Upgrades

Solid Collectibles Business to Lift GameStop's (GME) Sales
Per the Zacks analyst, GameStop's collectibles business demonstrated impressive growth in the fiscal fourth quarter, with sales increasing 15.8% year over year to $270.6 million from $233.7 million.

Solid Growth Momentum, New Launches Aid CommScope (COMM)
Per the Zacks analyst, solid growth momentum and product innovation are boosting CommScope's top line. Portfolio enhancements further aid the company.

New Downgrades

Falling Module Prices Continue to Hit Canadian Solar (CSIQ)
Per the Zacks analyst, falling module selling price may continue to hurt Canadian Solar's revenue in the near term. Yet, it boasts solid project pipeline that may boost growth in long run.

Expenses, Volatile Trading Revenues to Hurt Jefferies (JEF)
Per the Zacks analyst, rising operating expenses, volatile trading revenues given reliance on capital markets, and regulatory risks in light of global presence, will likely hurt Jefferies' financials.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research