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McDonald's (MCD) Gains But Lags Market: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $215.71, marking a +1% move from the previous day. The stock lagged the S&P 500's daily gain of 2.02%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 2.71%.
Coming into today, shares of the world's biggest hamburger chain had gained 4.19% in the past month. In that same time, the Retail-Wholesale sector gained 1.86%, while the S&P 500 lost 0.39%.
MCD will be looking to display strength as it nears its next earnings release. On that day, MCD is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 14.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.24 billion, down 3.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.85 per share and revenue of $19.05 billion, which would represent changes of -25.38% and -9.6%, respectively, from the prior year.
Any recent changes to analyst estimates for MCD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. MCD currently has a Zacks Rank of #3 (Hold).
Investors should also note MCD's current valuation metrics, including its Forward P/E ratio of 36.53. This represents a premium compared to its industry's average Forward P/E of 33.99.
Meanwhile, MCD's PEG ratio is currently 4.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCD's industry had an average PEG ratio of 3.79 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McDonald's (MCD) Gains But Lags Market: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $215.71, marking a +1% move from the previous day. The stock lagged the S&P 500's daily gain of 2.02%. At the same time, the Dow added 1.6%, and the tech-heavy Nasdaq gained 2.71%.
Coming into today, shares of the world's biggest hamburger chain had gained 4.19% in the past month. In that same time, the Retail-Wholesale sector gained 1.86%, while the S&P 500 lost 0.39%.
MCD will be looking to display strength as it nears its next earnings release. On that day, MCD is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 14.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.24 billion, down 3.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.85 per share and revenue of $19.05 billion, which would represent changes of -25.38% and -9.6%, respectively, from the prior year.
Any recent changes to analyst estimates for MCD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. MCD currently has a Zacks Rank of #3 (Hold).
Investors should also note MCD's current valuation metrics, including its Forward P/E ratio of 36.53. This represents a premium compared to its industry's average Forward P/E of 33.99.
Meanwhile, MCD's PEG ratio is currently 4.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCD's industry had an average PEG ratio of 3.79 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.