Top Stock Reports for SAP, McDonald's & Shopify

Thursday, February 5, 2026

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 SAP SE (SAP), McDonald's Corp. (MCD) and Shopify Inc. (SHOP), as well as two micro-cap stocks Comstock Holding Companies, Inc. (CHCI) and SIFCO Industries, Inc. (SIF). 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 >>>

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> Jobless Claims Pop Up a Bit, Major Morning for Earnings

Today's Featured Research Reports

Shares of SAP have underperformed the Zacks Computer - Software industry over the past six months (-31.6% vs. -25.3%). The company’s cloud backlog was pressured by deal mix and longer sales cycles, delaying near-term recognition. Continued weak software license and services revenues hurt. 

Nevertheless, SAP’s fourth-quarter results reflected strong Cloud ERP growth and uptake of its Rise with SAP and Grow with SAP solutions amid macro and geopolitical tensions. Solid booking momentum sets up SAP for faster top-line growth through 2027. Steady adoption of Business Data Cloud and Business AI innovations is a catalyst. Current cloud backlog rose 25% at constant currency, despite structural headwinds from large enterprise contracts with termination-for-convenience clauses. 

SAP forecasts record €10 billion free cash flow in 2026, driven by efficiency, disciplined capital allocation and AI adoption, while a new €10 billion buyback signals strength in long-term cash flows, margin expansion and disciplined shareholder returns.

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

McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the past six months (+7.3% vs. +5.6%). The company continues to benefit from strong international comparable sales, effective brand marketing campaigns, expanding loyalty programs and ongoing menu innovation.  

McDonald remains confident in its long-term strategy and is pushing ahead with aggressive unit expansion, targeting 50,000 restaurants worldwide by 2027. Earnings estimates for fiscal 2026 have moved up in the past 30 days, depicting analysts’ optimism. 

However, despite solid same-store sales performance, financial pressures remain. A key concern highlighted in the last earnings call was the sharp decline in traffic from lower-income consumers, which dropped by nearly double digits in the quarter, extending a troubling trend over the past two years.

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

Shares of Shopify have underperformed the Zacks Internet - Services industry over the past six months (-29.2% vs. +59.1%). The company faces gross margin pressure due to higher hosting costs, the three-month paid trial program, and the expanded PayPal partnership, which carries lower margins. Higher operating expenses are expected to hurt margins in the near term. 

Nevertheless, Shopify’s prospects are benefiting from an expanding merchant base. New merchant-friendly tools like Shop Minis, Shop Cash, and Sign in with Shop along with Shop Pay solutions is helping SHOP win merchants regularly. The company’s investment in AI-driven tools, such as Catalog, Universal Cart, and Sidekick, is helping merchants improve customer engagement and streamline operations. 

Shopify’s expanding international footprint with strong growth in Europe is a key catalyst. A rich partner base is helping SHOP expand its merchant base. Strong free cash flow margin reflects solid liquidity.

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

Comstock's shares have outperformed the Zacks Building Products - Home Builders industry over the past year (+34.1% vs. +5.9%). This microcap company with a market capitalization of $114.39 million has its strategic execution reinforces its position as a premier developer of transit-oriented, mixed-use real estate. A landmark lease with Booz Allen Hamilton at Reston Station enhances cash flow stability and brand prestige. 

The JW Marriott Reston Station opening elevates Comstock’s hospitality footprint, offering premium amenities and strong recurring income. The Rockville multifamily acquisition via the Institutional Venture Platform supports growth, diversification and capital efficiency. However, rising labor costs, excessive reliance on related-party revenues and weak free cash flow pressure margins and liquidity. 

Additionally, compliance risks and geographic concentration in the D.C. metro area expose the firm to regulatory and regional volatility. Despite these headwinds, the stock has significantly outperformed peers, and valuation remains attractive relative to its growth potential. 

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

Shares of SIFCO Industries have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+74.8% vs. +33.1%). This microcap company with a market capitalization of $38.09 million is leveraged to structurally resilient aerospace and defense markets, with revenue largely tied to long-cycle, high-barrier programs. 

Fiscal 2025 sales rose 6.5%, supported by military, space and commercial aircraft demand, while backlog rose to $119.2 million, providing revenue visibility. Profitability improved, with EBITDA rebounding to $5.9 million and operating income turning positive, aided by cost discipline, lower interest expense and portfolio simplification after the European divestiture. 

Yet, margin quality remains fragile, with gains partly driven by non-recurring ERC benefits, thin operating leverage and high working capital intensity. Liquidity is constrained, cash generation is modest and reliance on military programs has increased. Valuation remains depressed, implying upside if execution improves but reflecting persistent structural risks.

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

Other noteworthy reports we are featuring today include NextEra Energy, Inc. (NEE), Illinois Tool Works Inc. (ITW) and Teradyne, Inc. (TER).

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

SAP Rides on Strength in Cloud Business and AI Advancements

Expansion, Loyalty Drive McDonald's (MCD), Traffic Pressures Linger

Product Rollouts and Growing Merchant Base Aid Shopify (SHOP)

Featured Reports

NextEra (NEE) Gains from Renewable Focus, Steady Investment
Per the Zacks analyst, NextEra's long-term investment in the range of $295-$325B to enhance clean electricity generation and strengthen its infrastructure will boost its profitability.

Food Equipment Unit Aids Illinois Tool (ITW) Amid Forex Woes
Per the Zacks analyst, Illinois Tool is benefitting from its Food Equipment unit, driven by strength in the institutional end market in North America. However, forex woes are an added concern.

Strategic Efforts Aids Hartford (HIG), Catastrophe Loss Ails
Per the Zacks analyst, a number of strategic initiatives such as vending of non-core businesses to focus on its U.S. operations bode well. However, exposure to catastrophic events remains a concern.

Solid Bookings Aid Dover (DOV) Despite Low Vehicle Services Volumes
Per the Zacks analyst, Dover will gain from strong bookings and acquisitions while grappling with vehicle services volumes.

Teleflex (TFX) Rides on Interventional Momentum, Macro Woes Stay
The Zacks analyst is impressed with Teleflex's Interventional segment gaining from its key growth drivers and the Vascular Intervention acquisition. Yet, macroeconomic impacts can weigh on margins.

Credit Sales, Receivables Growth Drive Bread Financial (BFH)
Per the Zacks analyst, Bread Financial is set to grow on credit sales growth driven by existing partners, as well as new product and brand partner additions. Yet, high expenses weighing on margin ail.

Diversification Aids ManpowerGroup (MAN), Competition High
Per the Zacks analyst, ManpowerGroup's diversified business mix supports recurring revenues, concentration risks reduction and widening global presence. Rising competition is an overhang.

New Upgrades

AI-Powered Semiconductor Test Demand Aids Teradyne's (TER) Prospects
Per the Zacks analyst, Teradyne benefits from strong semiconductor test demand as customers accelerates production of a wide range of AI accelerators, networking, memory and power devices.

Loan Growth Aids UMB Financial (UMBF), Capital Level Solid
Per the Zacks analyst, Organic growth remains a key strength of UMB Financial, aided by rising loan and deposit balances. Decent liquidity position is an added advantage.

Menu Pricing and Marketing Efforts Aids Brinker's (EAT) Performance
Per the Zacks analyst, Brinker benefits from strong comps growth driven by menu pricing, marketing strategies and higher traffic. Also, focus on menu innovation and remodel activity bode well.

New Downgrades

Summit's (SMMT) Lack of Pipeline Diversification A Woe
While Summit's progress with its experimental cancer drug is encouraging, the lack of pipeline diversification beyond this drug concerns the Zacks Analyst.

Venture Global (VG) Faces Arbitration Overhang at Calcasieu Pass
Per the Zacks analyst, VG faces a key downside risk from Calcasieu Pass arbitration, with limited reserves, large customer claims and uncertainty persisting into 2026.

Diageo (DEO) Sees Volume Slump Across North America and Europe
Per the Zacks analyst, Diageo's fiscal 2025 volumes fell in North America and Europe, with mature markets pressuring growth, leaving the company dependent on price gains and emerging markets.

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

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