We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, McDonald's (MCD - Free Report) closed at $251.46, marking a -0.33% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the world's biggest hamburger chain had gained 1.35% over the past month, outpacing the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% in that time.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. On that day, McDonald's is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 3.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.88 billion, down 0.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.76 per share and revenue of $23.55 billion. These totals would mark changes of +5.17% and +1.4%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. McDonald's currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 25.85. This represents a premium compared to its industry's average Forward P/E of 18.84.
Also, we should mention that MCD has a PEG ratio of 3.23. 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. MCD's industry had an average PEG ratio of 1.8 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 220, which puts it in the bottom 13% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $251.46, marking a -0.33% move from the previous day. This move lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the world's biggest hamburger chain had gained 1.35% over the past month, outpacing the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% in that time.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. On that day, McDonald's is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 3.38%. Meanwhile, our latest consensus estimate is calling for revenue of $5.88 billion, down 0.13% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.76 per share and revenue of $23.55 billion. These totals would mark changes of +5.17% and +1.4%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. McDonald's currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 25.85. This represents a premium compared to its industry's average Forward P/E of 18.84.
Also, we should mention that MCD has a PEG ratio of 3.23. 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. MCD's industry had an average PEG ratio of 1.8 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 220, which puts it in the bottom 13% 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.