Top Stock Reports for McDonald's, RTX & S&P Global

Friday, May 16, 2025

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 McDonald's Corp. (MCD), RTX Corp. (RTX) and S&P Global Inc. (SPGI), as well as a micro-cap stock New England Realty Associates Limited Partnership (NEN). 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 >>> Housing Numbers, Imports & Exports Close Out Eventful Week

Today's Featured Research Reports

McDonald’s shares have outperformed the Zacks Retail - Restaurants industry over the past year (+19.1% vs. +7.5%). The company reported first-quarter 2025 results, with earnings beating the Zacks Consensus Estimate but revenues missing. The bottom line rose, but the top line decreased 3% year over year.

McDonald’s results in the quarter were hurt by a decline in comparable guest counts. It reported negative comparable sales in the United States and International Operated Markets segments. Also, inflationary pressures are still posing threats to the increase in consumer spending. It expects to witness labor, food, paper and commodity inflation in 2025.

That said, the company is benefiting from menu innovation, value offerings and global expansion strategies. It plans to open approximately 2,200 restaurants globally in 2025.

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

Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past year (+36.2% vs. +12.3%). The company continues to receive ample orders for its wide range of combat-proven defense products, from the Pentagon and its foreign allies. This resulted in RTX registering a robust defense backlog of $92 billion as of March 31, 2025.

Steadily improving commercial air traffic worldwide has also been boosting the company's sales. RTX also holds a solid solvency position, at least in the short term.

However, the uncertainties created by the recent imposition of U.S. government-issued import tariffs and the counter-tariffs from other nations pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely affect RTX’s performance. The stock’s forward 12-month EV/SALES ratio is unimpressive when compared to its industry.

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

S&P Global’s shares have outperformed the Zacks Business - Information Services industry over the past year (+19% vs. +13.5%). The company remains well-poised to gain from the growing demand for business information services. Buyouts help innovate, increase differentiated content and develop products.

The latest service launches have been aiding the company's growth and enhancing its market reach. The stock is appealing for the dividend-seeking investors. Share buybacks boost investors' confidence and positively impact earnings per share.

On the flip side, growth initiatives, higher compensations and incentives raise the company's expenses. A highly competitive environment strains the company's market share. Declining liquidity position due to reduction in cash troubles the company. The stock has gained 18% in a year and we have a Neutral recommendation on it in anticipation of a correction.

(You can read the full research report on S&P Global here >>>)

Shares of New England Realty Associates’ have outperformed the Zacks Real Estate - Operations industry over the past year (+17.8% vs. +13.8%). This microcap company with market capitalization of $279.34 million have made a $175 million acquisition of Hill Estates which marks a transformative expansion, adding 396 residential units and commercial assets in high-demand Massachusetts markets. Funded via cash, T-bill liquidation, and debt, the deal enhances scale without dilutive equity issuance.

Q1 2025 results show 4.0% rental income growth and a 1.6% residential vacancy rate, underscoring pricing power and leasing strength. Liquidity exceeds $88 million, including high-yielding Treasuries, supporting strategic flexibility. The 72-unit Mill Street project adds future income, while joint ventures contribute accretive, low-risk cash flows. Capital returns remain disciplined, with steady repurchases and dividends.

However, risks include negative partner equity, rising costs, and regional concentration in New England. Modest lease softness and limited exposure to high-growth sectors like industrial real estate may dampen long-term appeal.

(You can read the full research report on New England Realty Associates here >>>)

Other noteworthy reports we are featuring today include Exxon Mobil Corp. (XOM), Danaher Corp. (DHR) and MercadoLibre, Inc. (MELI).

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

Menu Innovation Aids McDonald's (MCD) Amid Dismal Comps

Defense Orders Drive RTX Corporation (RTX), Despite Supply Chain Woes

ProntoNLP Buyout Aids S&P Global (SPGI) Amid Rising Costs

Featured Reports

Strong Biotechnology Segment to Aid Danaher, High Debt Ails
Per the Zacks analyst, solid performance of Danaher's Biotechnology unit, driven by an increase in demand for consumables, will continue to lend momentum to it. However, high debt remains a woe.

MercadoLibre (MELI) Gains From Total Payment Volume Growth
Per the Zacks analyst, MercadoLibre benefits from solid total payment volume growth, driven by strong momentum across Mercado Pago and mobile-point-of-sale business.

Cadence (CDNS) Thrives on AI Tailwinds & Buyouts Amid FX Woes
Per the Zacks analyst, Cadence's growth is driven by AI-led chip innovation and rising computing demand, though FX volatility from international exposure poses a challenge.

IDEXX (IDXX) Sees Strong Catalyst Uptake, Boosts CAG Growth
Per the Zacks analyst, the solid organic growth trend within IDEXX' Companion Animal Group (CAG) revenues will sustain on strong global placement of high-premium Catalyst instruments.

Mission Critical Assets' Demand Aid VICI Properties (VICI)
Per the Zacks Analyst, VICI Properties is set to benefit from high demand for its mission-critical assets, long-term leases and decent balance sheet. Steady dividend payouts enhance shareholder value.

Coty (COTY) to Keep Gaining From Cost Reduction Initiatives
Per the Zacks analyst, Coty is on track to achieve $120 million in cost-saving productivity improvements for fiscal 2025, boosting margins and supporting growth through its All In to Win program.

Rocket's (RCKT) Gene Therapy Pipeline Progresses, CRL Hurts
Per the Zacks analyst, Rocket Pharmaceuticals is progressing well with the development of its gene therapy candidates. However, the FDA's CRL to the BLA for Kresladi was a major setback.

New Upgrades

ExxonMobil's (XOM) Starbroek & Permian Basin Presence Aids
Per the Zacks analyst, ExxonMobil's strong presence in the Starbroek Block and Permian Basin should boost its production outlook. However, softening refining profits raise concerns.

Hims & Hers Health (HIMS) Gains from Personalized Solutions
Per the Zacks analyst, Hims & Hers Health's personalized solution for individual health needs is driving demand as well as retention rates higher and keeping it ahead in competition.

Solid Pipeline Aids Canadian Solar (CSIQ), Tariff Issue Woes
Per the Zacks analyst, Canadian Solar boasts a solid solar and energy storage project pipeline that should boost its growth. Yet the impact of U.S. tariff on imports might hurt the stock

New Downgrades

Petrobras (PBR) Wrecked by Rising Debt Burden
The Zacks analyst is concerned about Petrobras' rising net debt, which has increased in recent quarters and signals financial pressure amid large investment commitments.

Increase In Medical Cost Hurt UnitedHealth's (UNH) Growth
Per the Zacks analyst, Rising utilization will increase medical cost and affect profit level. Moreover, the company's deteriorating MCR is concerning.

Shrinking Margins Hurts Steven Madden's (SHOO) Profitability
Per the Zacks analyst, Steven Madden's direct-to-consumer gross margin faces pressure from increased promotional activity. This metric declined 180 bps year-over-year to 60.1% in the first quarter.

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

Zacks Investment Research