The Zacks Analyst Blog Highlights Microsoft, Broadcom, McDonald's and Kingsway Financial Services

For Immediate ReleaseChicago, IL – April 29, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. MSFT, Broadcom Inc. AVGO, McDonald's Corp. MCD and Kingsway Financial Services Inc. KFS.Here are highlights from Monday’s Analyst Blog:Top Analyst Reports for Microsoft, Broadcom and McDonald'sThe 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 Microsoft Corp., Broadcom Inc. and McDonald's Corp., as well as a micro-cap stock Kingsway Financial Services Inc. 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 StreetThe 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 and attempts 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 >>> Big Week Ahead for the Stock MarketToday's Featured Research ReportsShares of Microsoft have declined -6.8% over the year-to-date period against the Zacks Computer - Software industry’s decline of -7.1%. The company is benefiting from steady growth in its AI business and Copilot adoption amid decelerating growth in the Azure cloud infrastructure unit. Productivity and Business Processes revenues continue to rise due to strong adoption of Office 365 Commercial solutions.ARPU growth is driven by E5 as well as M365 Copilot. Intelligent Cloud revenues are gaining from growth in Azure AI services and a rise in AI Copilot business. Non-AI growth trends are experiencing sluggishness due to go-to-market execution challenges.The Zacks analyst expects fiscal 2025 net sales to grow 12.7% from fiscal 2024. However, Microsoft Office's declining commercial licensing due to the continued customer shift to cloud offerings is an overhand. Higher operating expenses and spending on Azure amid stiff competition in the cloud space from Google Cloud and Amazon Web Services remain concerns.(You can read the full research report on Microsoft here >>>)Broadcom’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past year (+45.4% vs. +10.3%). The company is benefiting from strong demand for its networking products and custom AI accelerators (XPUs) as witnessed in first-quarter fiscal 2025. Strong demand for Broadcom’s application-specific integrated chips (ASICs), designed to support AI and machine learning, aids top-line growth.Broadcom expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of fiscal first quarter, roughly 70% of Broadcom’s largest 10,000 customers have adopted the VMware Cloud Foundation.Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. However, gross margin in fiscal second quarter is expected to contract sequentially on unfavorable revenue and product mix. High debt levels are a headwind.(You can read the full research report on Broadcom here >>>)McDonald's shares have outperformed the Zacks Retail - Restaurants industry over the year-to-date period (+9.9% vs. -0.5%). 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.However, the decline in average checks in the U.S. and negative comparable sales in the U.K. and China are concerning. Also, inflationary pressures are still posing threats to consumer spending increase.McDonald's expects to witness labor, food, paper and commodity inflation in 2025. Earnings estimates for 2025 have declined in the past 30 days, depicting analysts’ concern about the stock’s growth potential.(You can read the full research report on McDonald's here >>>)Shares of Kingsway Financial Services have underperformed the Zacks Insurance - Property and Casualty industry over the past year (-7.6% vs. +28.7%). This microcap company with a market capitalization of $228.01 million has seen its asset-light model and Search Fund strategy underpin scalable growth, but rising net debt ($52 million at year-end from $35.3 million in 2023) and persistent net losses ($8.3 million in 2024 against net income of $24 million) raise caution.Margin pressure in Extended Warranty, integration risks, macroeconomic risks and equity dilution from preferred issuances pose headwinds to long-term earnings stability.Nevertheless, Kingsway Financial reported 2024 revenue growth of 5.9% to $109.4 million from $103.2 million in 2023, driven by strength in KSX (up 15.7%) and Extended Warranty gains (up 0.9%). Adjusted EBITDA rose 16.9% to $10.6 million in 2024 from $9.1 million in 2023, reflecting operating efficiency and accretive M&A. Strategic acquisitions like Image Solutions and Bud’s Plumbing expanded recurring-revenue exposure and launched new verticals.(You can read the full research report on Kingsway Financial Services here >>>)Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt'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 Microsoft Corporation (MSFT): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Kingsway Financial Services, Inc. (KFS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks