Analysts Offer Insights on Consumer Cyclical Companies: Amazon (AMZN), McDonald's (MCD) and Aptiv (APTV)
There's a lot to be optimistic about in the Consumer Cyclical sector as 3 analysts just weighed in on Amazon (AMZN – Research Report), McDonald's (MCD – Research Report) and Aptiv (APTV – Research Report) with bullish sentiments.
Protect Your Portfolio Against Market Uncertainty
Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Amazon (AMZN)
RBC Capital analyst Brad Erickson maintained a Buy rating on Amazon today and set a price target of $230.00. The company's shares closed last Thursday at $190.20.
According to TipRanks.com, Erickson is a 5-star analyst with an average return of 16.6% and a 50.0% success rate. Erickson covers the Technology sector, focusing on stocks such as Uber Technologies, GoDaddy, and Bumble. ;'>
Currently, the analyst consensus on Amazon is a Strong Buy with an average price target of $243.12, a 27.5% upside from current levels. In a report issued on April 21, Raymond James also downgraded the stock to Buy with a $195.00 price target.
McDonald's (MCD)
In a report released today, Dennis Geiger from UBS maintained a Buy rating on McDonald's, with a price target of $350.00. The company's shares closed last Thursday at $313.64, close to its 52-week high of $326.32.
According to TipRanks.com, Geiger is a 4-star analyst with an average return of 5.3% and a 60.0% success rate. Geiger covers the NA sector, focusing on stocks such as Papa John's International, Cheesecake Factory, and Dine Brands Global. ;'>
Currently, the analyst consensus on McDonald's is a Moderate Buy with an average price target of $327.19, representing a 4.5% upside. In a report issued on April 22, Barclays also maintained a Buy rating on the stock with a $347.00 price target.
Aptiv (APTV)
In a report released yesterday, Tom Narayan from RBC Capital maintained a Buy rating on Aptiv, with a price target of $77.00. The company's shares closed last Thursday at $56.96, close to its 52-week low of $51.47.
According to TipRanks.com, Narayan is a 3-star analyst with an average return of 0.5% and a 39.5% success rate. Narayan covers the NA sector, focusing on stocks such as Bayerische Motoren Werke Aktiengesellschaft, Mobileye Global, Inc. Class A, and Mercedes-Benz Group. ;'>
Currently, the analyst consensus on Aptiv is a Moderate Buy with an average price target of $73.00, a 32.2% upside from current levels. In a report issued on April 21, Bank of America Securities also maintained a Buy rating on the stock with a $80.00 price target.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 hours ago
- Globe and Mail
Shopify vs. Amazon: Which E-Commerce Stock Has The Edge Now?
Shopify SHOP and Amazon AMZN are strong players in the e-commerce industry. While Shopify is growing its presence in the e-commerce domain by offering user-friendly tools and an extensive app marketplace, AMZN is expanding its footprint in the e-commerce space by diversifying its product offerings, enhancing delivery infrastructure and entering new global markets to solidify its dominance. According to the Morder Intelligence report, the e-commerce market is projected to be worth $10.19 trillion in 2025. It is expected to reach $21.22 trillion by 2030, with a compound annual growth rate of 15.8% over the 2025-2030 period. Both SHOP and AMZN are likely to gain from the massive growth opportunity. So, Shopify or Amazon— Which of these e-commerce stocks has the greater upside potential? Let's find out. The Case for SHOP Stock Shopify is benefiting from robust growth in its merchant base. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. Growth was driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. Strong adoption of these solutions holds promise for Shopify's prospects. Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny were adopted by Shop Pay, enhancing Shopify's portfolio. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify enhances its platform's power and user-friendliness. An expanding partner base that includes TikTok, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, PayPal, Roblox, YouTube, Target, Manhattan Associates, COACH, Oracle and Adyen is expected to expand its merchant base further. The Case for AMZN Stock Amazon is expanding its footprint in the e-commerce space by continuously expanding its product offerings. The company's expanding global presence, growing capabilities in grocery, pharmacy, healthcare and autonomous driving are key positives. In the first quarter of 2025, the company expanded its product offerings by welcoming well-known brands like Oura Rings, Michael Kors, and The Ordinary, as well as introducing a luxury shopping experience with Saks featuring high-end brands like Dolce&Gabbana and Balmain. During the first quarter, Amazon held multiple deal events worldwide, helping customers save more than $500 million across the Big Spring Sale in the United States and Canada, Spring Deal Days in Europe, and Ramadan/Eid sales in the Middle East. In the reported quarter, Amazon set new delivery speed records for Prime members and delivered more items same-day or next-day than in any previous quarter. Amazon's focus on everyday essentials has been a key catalyst in bolstering its e-commerce growth. Everyday essentials grew more than twice as fast as the rest of Amazon's business and represented one out of every three units sold in the United States. With more than $100 billion in gross sales from grocery items alone, Amazon solidified its position as one of the largest grocers in the United States. Price Performance and Valuation of SHOP and AMZN Year-to-date, SHOP shares have gained 4.8% while AMZN shares have lost 2.7%. The increase in SHOP shares can be attributed to robust growth in its merchant base, driven by its merchant-friendly tools. However, Amazon's shares declined due to the challenging macroeconomic environment. A broader market weakness in the tech sector and persistent fear over mounting tariffs have added to the pressure. SHOP and AMZN Stock Performance Image Source: Zacks Investment Research Valuation-wise, SHOP and AMZN's shares are currently overvalued, as suggested by a Value Score of F and D, respectively. In terms of forward 12-month Price/Sales, SHOP shares are trading at 12.28X, higher than AMZN's 3.14X. Price/Sales (F12M) Image Source: Zacks Investment Research How Do Earnings Estimates Compare for SHOP & AMZN? The Zacks Consensus Estimate for SHOP's 2025 earnings is pegged at $1.40 per share, which has declined 3.4% over the past 30 days, indicating a 10.77% increase year over year. The Zacks Consensus Estimate for AMZN's 2025 earnings is pegged at $6.31 per share, which has increased by a penny over the past 30 days, indicating a 7.69% increase year over year. SHOP's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, with an average surprise of 14.87%. AMZN's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 20.68%. The average surprise of AMZN is higher than that of SHOP. Conclusion Shopify is benefiting from strong growth in its merchant base and growing enterprise customer base. However, challenging macroeconomic conditions and new tariffs are expected to hurt SHOP's near-term prospects. However, despite market challenges, Amazon's diverse product offerings, strong global presence, and stronger earnings surprises position it as the better pick. With faster deliveries and a focus on everyday essentials, Amazon is better positioned to succeed in the long run. Shopify and Amazon carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shopify Inc. (SHOP): Free Stock Analysis Report
Globe and Mail
4 hours ago
- Globe and Mail
Analysts: 1 Thing Apple Could Do to Make AAPL Stock a Buy Again Now
Apple (AAPL) remains one of the world's most valuable companies, but recent market performance and analyst sentiment suggest cracks in its premium valuation. Needham downgraded AAPL to 'Hold,' in part based on decelerating earnings growth, constrained innovation in generative AI, and mounting pressures on the commission-based model of the App Store. Analyst Laura Martin also emphasized that Apple could materially improve its bull case by 'aggressively pursuing' advertising revenue, an underdeveloped but potentially lucrative growth channel. With the stock still trading at over 26 times forward earnings, above the company's 10-year median and the S&P 500 Index ($SPX) in general, shareholders are questioning the growth thesis. Apple's Q2 FY2025 results displayed modest gains, with a 5% year-over-year increase in revenue to $95.4 billion and a rise in EPS of 8% to $1.65. Those gains, however, are behind those of competitors such as Amazon (AMZN) and Google (GOOGL), which exhibited much greater margin expansion and accelerating revenue. While Apple is still a powerhouse in premium hardware, analysts contend that its ecosystem requires a fresh growth trigger, such as advertising. About Apple Stock Apple (AAPL) is mega-cap tech giant focused on consumer electronics, software, and online services. Based in Cupertino, California, Apple has a market cap above $3 trillion fueled by flagship devices like the iPhone, iPad, and Mac, and cloud-based services like iCloud and Apple Music. AAPL shares have fallen about 21% from their 52-week high point of $260.10, most recently priced at about $205. After a brief recovery, the stock continues to trail the S&P 500's small YTD return of 2.1%. Some analysts now see lower levels, in the range of $170 to $180, as a reasonable point to enter, citing valuation issues and competition concerns. The company is priced at 28.2x forward earnings and 7.66x price-sales. While these are roughly in line with its five-year averages, they are rich valuations that are causing some investors to take a second look. Although Apple does pay a dividend, it is modest at $1.04 per share, and the company's recent share buyback authorization of $100 billion is still the focal point of its capital return policy. Apple Beats Q2 Earnings, But Forward Momentum Slows Apple reported fiscal Q2 results, besting Wall Street forecasts in terms of both revenue and EPS. It reported $95.4 billion in revenue, an increase of 5% year-over-year, and EPS of $1.65, an increase of 8%. Operating cash flow totaled $24 billion, powering a staggering $29 billion return to shareholders in the form of dividends and repurchases. In the future, however, Apple's growth trajectory looks to be less impressive. Already priced in is the iPhone 16e launch, so flat top-line growth is predicted by analysts for fiscal 2025. Further, Apple's heavy exposure to hardware sales makes it susceptible to macroeconomic slowdowns and competition. Regulatory danger also lurks in the wings. Apple's App Store 'platform tax,' a 15%–30% cut on in-app transaction income, is under international scrutiny. Regulators and competitors are trying to dismantle this stream of income, presently one of the major drivers of Services segment profits. What Analysts Project for Apple Stock Apple is graded a 'Moderate Buy' by Barchart's 37 analysts in coverage, but recent sentiment is weaker. The average 12-month target price of AAPL is at $231.02, signaling 13% upside from current prices. The highest estimate is at $300, signaling best-case upside of almost 50%, and the lowest of $141, signaling worst-case downside of roughly 30%. This broad range is a reflection of the unclear path of Apple's growth story.
Toronto Sun
4 hours ago
- Toronto Sun
Amazon to spend $20B on data centres in Pennsylvania
Published Jun 09, 2025 • Last updated 3 minutes ago • 2 minute read FILE - A data center owned by Amazon Web Services, front right, is under construction next to the Susquehanna nuclear power plant in Berwick, Pa., on Tuesday, Jan. 14, 2024. Photo by Ted Shaffrey / AP HARRISBURG, Pa. (AP) — Amazon said Monday that it will spend $20 billion on two data center complexes in Pennsylvania, including one it is building alongside a nuclear power plant that has drawn federal scrutiny over an arrangement to essentially plug right into the power plant. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Kevin Miller, vice president of global data centers at Amazon's cloud computing subsidiary, Amazon Web Services, told The Associated Press that the company will build another data center complex just north of Philadelphia. One data center is being built next to northeastern Pennsylvania's Susquehanna nuclear power plant. The other will be in Fairless Hills at a logistics campus, the Keystone Trade Center, on what was once a U.S. Steel mill. In a statement, Gov. Josh Shapiro called it the largest capital investment in Pennsylvania's history. The announcements add to the billions of dollars in Big Tech's data center cash already flowing into the state. Since 2024 started, Amazon has committed to about $10 billion apiece to data center projects in Mississippi, Indiana, Ohio and North Carolina as it ramps up its investment in infrastructure to compete with other tech giants to meet growing demand for artificial intelligence products. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The rapid growth of cloud computing and artificial intelligence has fueled demand for data centers that need power to run servers, storage systems, networking equipment and cooling systems. The majority owner of the Susquehanna nuclear power plant, Talen Energy, announced last year that it had sold its data center to Amazon for $650 million in a deal to eventually provide 960 megawatts. That's 40% of the output of one of the nation's largest nuclear power plants, or enough to power more than a half-million homes. However, the arrangement between Talen and Amazon — called a 'behind the meter' connection — has been held up by the Federal Energy Regulatory Commission in the first such case to come before the agency. This advertisement has not loaded yet, but your article continues below. It has raised questions over whether diverting power to higher-paying customers will leave enough for others and whether it's fair to excuse big power users from paying for the grid. For Big Tech, plugging energy-hungry data centers directly into a power plant can take years off their development timelines and is a much faster route to procuring power than having to connect to the congested electricity grid. It's not clear when FERC, which blocked the deal on a procedural grounds, will decide the matter, leaving in limbo regulatory treatment of the deal and others that likely would follow. Already in Pennsylvania, Microsoft announced a deal with the owner of the shuttered Three Mile Island nuclear power plant to restart the reactor under a 20-year agreement to supply its data centers in four states with energy. Meanwhile, the owners of what was once Pennsylvania's biggest coal-fired power plant say they will turn it into a $10 billion natural gas-powered data center campus. Canada World Sunshine Girls Golf Editorial Cartoons
