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McDonald's (MCD) Stock Moves -0.71%: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $251.48, marking a -0.71% move from the previous day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the world's biggest hamburger chain had gained 6.21% over the past month, outpacing the Retail-Wholesale sector's gain of 0.17% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect McDonald's to post earnings of $2.45 per share. This would mark 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.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.74 per share and revenue of $23.43 billion. These results would represent year-over-year changes of +4.96% and +0.88%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. McDonald's is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26. For comparison, its industry has an average Forward P/E of 18.97, which means McDonald's is trading at a premium to the group.
Investors should also note that MCD has a PEG ratio of 3.24 right now. 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 1.78 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Stock Moves -0.71%: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $251.48, marking a -0.71% move from the previous day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the world's biggest hamburger chain had gained 6.21% over the past month, outpacing the Retail-Wholesale sector's gain of 0.17% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect McDonald's to post earnings of $2.45 per share. This would mark 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.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.74 per share and revenue of $23.43 billion. These results would represent year-over-year changes of +4.96% and +0.88%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. McDonald's is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26. For comparison, its industry has an average Forward P/E of 18.97, which means McDonald's is trading at a premium to the group.
Investors should also note that MCD has a PEG ratio of 3.24 right now. 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 1.78 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.