3 Red-Hot Stocks Still Worth Buying

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Although the latest performances by the major benchmark indexes reflect bullish investor sentiment, analysts expect the stock market to suffer a correction in the nea- term on concerns over the rapid spread of the COVID-19 Delta variant worldwide. Impressive second-quarter corporate results are the primary factor helping the market stay steady, offsetting the negativity related to the resurgence of COVID-19 cases.

But even if the robust corporate earnings cannot offset the concerns surrounding the potential that a resurgence will slow economic growth in the near-term, there are still some fundamentally sound stocks that should keep performing well. We believe industry tailwinds and fundamental strength make McDonald’s Corporation (MCD), Zoetis Inc. (ZTS), and Republic Services, Inc. (RSG) solid bets now.

McDonald’s Corporation (MCD)

MCD is one of the most popular global foodservice retailers with over 39,000 locations in more than 100 countries. Approximately 93% of MCD’s restaurants are owned and operated by independent local business owners. On May 20, MCD announced new investment plans to accelerate the allocation of advertising dollars to diverse-owned media companies, production houses, and content creators, which should contribute significantly to its overall marketing strategy and goals.

MCD’s revenues increased 57% year-over-year to $5.89 billion in its fiscal second quarter, ended June 30. Its operating income grew 180% from its year-ago value to $2.69 billion, while its net income improved 358.7% year-over-year to $2.22 billion. The company’s EPS increased 353.8% year-over-year to $2.95.

Analysts expect MCD’s revenues to increase 16.8% year-over-year to $22.44 billion in the current year. The $8.63 consensus EPS estimate for the current year indicates a 42.6% rise versus the last year. Shares of MCD have gained 23.2% over the past year. The stock has gained 16.9% over the past six months and has been recently trading at around $242.71.

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