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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 $250.38, marking a +0.44% move from the previous day. This change lagged the S&P 500's 1.84% gain on the day. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the world's biggest hamburger chain had lost 1.98% in the past month. In that same time, the Retail-Wholesale sector lost 5.5%, while the S&P 500 lost 0.5%.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.46, up 3.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.85 billion, down 0.63% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $23.45 billion. These results would represent year-over-year changes of +5.6% and +0.98%, respectively.
Investors might also notice recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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.
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 0.05% lower within the past month. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 25.44. This valuation marks a premium compared to its industry's average Forward P/E of 19.65.
Meanwhile, MCD's PEG ratio is currently 3.17. 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 1.82 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 193, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $250.38, marking a +0.44% move from the previous day. This change lagged the S&P 500's 1.84% gain on the day. At the same time, the Dow added 1.33%, and the tech-heavy Nasdaq gained 0.53%.
Coming into today, shares of the world's biggest hamburger chain had lost 1.98% in the past month. In that same time, the Retail-Wholesale sector lost 5.5%, while the S&P 500 lost 0.5%.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.46, up 3.8% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.85 billion, down 0.63% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.80 per share and revenue of $23.45 billion. These results would represent year-over-year changes of +5.6% and +0.98%, respectively.
Investors might also notice recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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.
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 0.05% lower within the past month. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 25.44. This valuation marks a premium compared to its industry's average Forward P/E of 19.65.
Meanwhile, MCD's PEG ratio is currently 3.17. 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 1.82 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 193, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.