We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's (MCD) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
McDonald's (MCD - Free Report) closed at $184.88 in the latest trading session, marking a +0.3% move from the prior day. This move lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 0.66%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.7% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.51% and the S&P 500's loss of 1.56% in that time.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be July 28, 2020. The company is expected to report EPS of $0.75, down 63.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, down 31.67% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $5.81 per share and revenue of $18.60 billion. These results would represent year-over-year changes of -25.89% and -11.77%, respectively.
It is also important to note the recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.86% higher. MCD is currently a Zacks Rank #2 (Buy).
Digging into valuation, MCD currently has a Forward P/E ratio of 31.72. Its industry sports an average Forward P/E of 40.87, so we one might conclude that MCD is trading at a discount comparatively.
We can also see that MCD currently has a PEG ratio of 4.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 5.04 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Gains But Lags Market: What You Should Know
McDonald's (MCD - Free Report) closed at $184.88 in the latest trading session, marking a +0.3% move from the prior day. This move lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 0.66%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.7% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.51% and the S&P 500's loss of 1.56% in that time.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be July 28, 2020. The company is expected to report EPS of $0.75, down 63.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.65 billion, down 31.67% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $5.81 per share and revenue of $18.60 billion. These results would represent year-over-year changes of -25.89% and -11.77%, respectively.
It is also important to note the recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.86% higher. MCD is currently a Zacks Rank #2 (Buy).
Digging into valuation, MCD currently has a Forward P/E ratio of 31.72. Its industry sports an average Forward P/E of 40.87, so we one might conclude that MCD is trading at a discount comparatively.
We can also see that MCD currently has a PEG ratio of 4.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 5.04 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.