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McDonald's (MCD) Gains But Lags Market: What You Should Know
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McDonald's (MCD - Free Report) closed at $238.92 in the latest trading session, marking a +0.61% move from the prior day. This change lagged the S&P 500's 1.17% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.31%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 5.36% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.14% and the S&P 500's gain of 0.88% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. In that report, analysts expect McDonald's to post earnings of $2.22 per share. This would mark year-over-year growth of 15.63%. Our most recent consensus estimate is calling for quarterly revenue of $5.63 billion, up 9.84% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $10.13 per share and revenue of $24.56 billion. These results would represent year-over-year changes of +9.16% and +5.76%, respectively.
It is also important to note the recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 23.45. Its industry sports an average Forward P/E of 20.46, so we one might conclude that McDonald's is trading at a premium comparatively.
Meanwhile, MCD's PEG ratio is currently 2.55. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.
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
McDonald's (MCD - Free Report) closed at $238.92 in the latest trading session, marking a +0.61% move from the prior day. This change lagged the S&P 500's 1.17% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 0.31%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 5.36% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.14% and the S&P 500's gain of 0.88% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. In that report, analysts expect McDonald's to post earnings of $2.22 per share. This would mark year-over-year growth of 15.63%. Our most recent consensus estimate is calling for quarterly revenue of $5.63 billion, up 9.84% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $10.13 per share and revenue of $24.56 billion. These results would represent year-over-year changes of +9.16% and +5.76%, respectively.
It is also important to note the recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 23.45. Its industry sports an average Forward P/E of 20.46, so we one might conclude that McDonald's is trading at a premium comparatively.
Meanwhile, MCD's PEG ratio is currently 2.55. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.