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McDonald's is a STRONG BUY — Here's Why

By Dan Simms, Stock Reporter
September 18, 2024 8:47 PM UTC
McDonald's is a STRONG BUY — Here's Why

The markets went red after the Fed announced rate cuts — it’ll be interesting to see what happens next. Meantime, our research team has unearthed some of the biggest movers and the best Strong Buy selections below:

Hot or Not: Stock Market Edition 

🔥 HOT: Satellite company Intuitive Machines (NASDAQ: LUNR) gained 38.3% on Wednesday after it won a NASA bid worth billions late on Tuesday. The contract is for putting satellites in orbit around the moon over the next five years and is worth nearly $5 billion. LUNR has now gained 184% YTD.

🥶 NOT: The blistering rally the Children's Place (NASDAQ: PLCE) stock has been on since its last earnings report finally took a break on Wednesday. Shares of PLCE fell by 12.7% after gaining more than 250% in five trading days. The company’s recent earnings report showed EPS 127% higher than consensus estimates, which sparked the buying frenzy.

🔥 HOT: Edge computing company Veea (NASDAQ: VEEA) gained 132.8% on Wednesday as news broke that the company is partnering with internet of things sensor company Crowdkeep. Trading volume on VEEA was through the roof, with 6.2 million shares traded compared with a daily average of about 1,000.

🥶 NOT: T-Mobile US (NASDAQ: TMUS) stock dropped by 3.0% on Wednesday amid news that the company will supply artificial intelligence company OpenAI with customer data to “boost user experience.” While Wednesday’s move is not anomalously large for TMUS, it is a bit bigger than the stock’s volatility would predict. It is possible that Wall Street fears customers will move to a different carrier for privacy reasons.

📈 Want more? Check out the biggest winners and biggest losers on WSZ. 

3 Strong Buys From Top Wall Street Analysts 

Read me! Read me! We’ve got 3 top-notch stock suggestions from top-rated analysts below. They all come from WallStreetZen's Top Analysts feature — a premium feature on our site, but we’ve unlocked a FREE sampling below: 

1- First Solar Inc. (NASDAQ: FLSR

Analyst/Firm: Julien Dumoulin-Smith / Bank of America

Analyst ranking: Top 3% / average return +8.29% / win rate 64% 

Yesterday’s market close: $241.81

Price target: $343.00 

  • Maintaining a Strong Buy rating, Bank of America's Julien Dumoulin-Smith raised their price target on First Solar (NASDAQ: FSLR) by 7.2% from $320 to $343 on 9/16.
  • Dumoulin-Smith maintained their current valuation on First Solar based on a marginally revised FY 2026 EBITDA estimate of $2.44B, but raised their price target on a higher mark-to-market multiple to account for the current market conditions.
  • 50% upside for FSLR in the coming year? Analysts believe it.

1-year chart for FSLR, courtesy TradingView

2- Diamondback Energy Inc. (NASDAQ: FANG)

Analyst/Firm: Devin McDermott / Morgan Stanley

Analyst ranking: Top 4% / average return +9.08% / win rate 56% 

Yesterday’s market close: $178.12 

Price target: $198.00 

  • Maintaining a Strong Buy rating, Morgan Stanley's Devin McDermott raised their price target on Diamondback Energy (NASDAQ: FANG) by 7% from $185 to $198 on 9/16.
  • In a North American Energy sector review note, McDermott noted that so far in Q3, names in the group have lagged the market by 10% because of softening oil prices, slowing inflation, and potential interest rate cuts, "all of which present headwinds for performance."
  • In that context, the analyst said Morgan Stanley prefers defensive sub-sector positioning among midstream and majors, favors gas over oil in exploration and production, and recommends that investors remain selective.
  • See why analysts foresee 40% upside for FANG in the coming year.

1-year chart for FANG, courtesy TradingView

3- McDonald’s Corp. (NYSE: MCD

Analyst/Firm: John Ivankoe / JP Morgan

Analyst ranking: Top 7% / average return +14.64% / win rate 66% 

Yesterday’s market close: $292.03

Price target: $290.00 

  • Maintaining a Strong Buy rating, JP Morgan's John Ivankoe raised their price target on McDonald’s (NYSE: MCD) by 7.4% from $270 to $290 on 9/16.
  • Ivankoe told readers they have reestablished a "safe to own" position on yield-based equities like Mcdonalds, Yum Brands, and Dominos, citing "the falling 10-year Treasury."
  • See more analyst ratings + forecasts for MCD here.

1-year chart for MCD, courtesy TradingView

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