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McDonald's (MCD) Gains As Market Dips: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $249.03, marking a +0.35% move from the previous day. This move outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.56% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.75% and the S&P 500's gain of 6.02% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. In that report, analysts expect McDonald's to post earnings of $2.21 per share. This would mark year-over-year growth of 15.1%. Our most recent consensus estimate is calling for quarterly revenue of $5.6 billion, up 9.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.98 per share and revenue of $24.12 billion, which would represent changes of +7.54% and +3.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.06% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 24.86. This represents a premium compared to its industry's average Forward P/E of 21.25.
Meanwhile, MCD's PEG ratio is currently 2.7. 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 was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% 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 As Market Dips: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $249.03, marking a +0.35% move from the previous day. This move outpaced the S&P 500's daily loss of 0.63%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.34%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.56% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.75% and the S&P 500's gain of 6.02% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. In that report, analysts expect McDonald's to post earnings of $2.21 per share. This would mark year-over-year growth of 15.1%. Our most recent consensus estimate is calling for quarterly revenue of $5.6 billion, up 9.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.98 per share and revenue of $24.12 billion, which would represent changes of +7.54% and +3.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.06% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 24.86. This represents a premium compared to its industry's average Forward P/E of 21.25.
Meanwhile, MCD's PEG ratio is currently 2.7. 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 was holding an average PEG ratio of 2.2 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% 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.