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Is McDonald's (MCD) Outperforming Other Retail-Wholesale Stocks This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. McDonald's (MCD - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

McDonald's is one of 221 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MCD is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for MCD's full-year earnings has moved 3.92% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, MCD has moved about 16.15% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -5.56%. This means that McDonald's is performing better than its sector in terms of year-to-date returns.

Looking more specifically, MCD belongs to the Retail - Restaurants industry, a group that includes 41 individual stocks and currently sits at #214 in the Zacks Industry Rank. On average, stocks in this group have gained 10.08% this year, meaning that MCD is performing better in terms of year-to-date returns.

MCD will likely be looking to continue its solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to the company.


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