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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed the most recent trading day at $211.56, moving -0.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.59% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.15% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from MCD as it approaches its next earnings release. The company is expected to report EPS of $1.78, down 9.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, up 0.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.18 per share and revenue of $19.25 billion. These totals would mark changes of -21.17% and -8.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MCD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.76% lower. MCD is currently a Zacks Rank #3 (Hold).
Digging into valuation, MCD currently has a Forward P/E ratio of 34.42. For comparison, its industry has an average Forward P/E of 34.95, which means MCD is trading at a discount to the group.
Investors should also note that MCD has a PEG ratio of 4.24 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 3.08 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 129, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed the most recent trading day at $211.56, moving -0.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.59% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.15% and the S&P 500's gain of 2.59% in that time.
Investors will be hoping for strength from MCD as it approaches its next earnings release. The company is expected to report EPS of $1.78, down 9.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, up 0.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.18 per share and revenue of $19.25 billion. These totals would mark changes of -21.17% and -8.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MCD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.76% lower. MCD is currently a Zacks Rank #3 (Hold).
Digging into valuation, MCD currently has a Forward P/E ratio of 34.42. For comparison, its industry has an average Forward P/E of 34.95, which means MCD is trading at a discount to the group.
Investors should also note that MCD has a PEG ratio of 4.24 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 3.08 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 129, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.