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McDonald's (MCD) Stock Moves -0.88%: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $253.47, marking a -0.88% move from the previous day. This change was narrower than the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.16% in the past month. In that same time, the Retail-Wholesale sector lost 6.28%, while the S&P 500 lost 7.59%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.59, down 6.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.77 billion, down 6.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.83 per share and revenue of $22.76 billion. These totals would mark changes of +5.93% and -1.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.02. For comparison, its industry has an average Forward P/E of 19.71, which means McDonald's is trading at a premium to the group.
Investors should also note that MCD has a PEG ratio of 3.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Stock Moves -0.88%: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $253.47, marking a -0.88% move from the previous day. This change was narrower than the S&P 500's 1.13% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.16% in the past month. In that same time, the Retail-Wholesale sector lost 6.28%, while the S&P 500 lost 7.59%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.59, down 6.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.77 billion, down 6.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.83 per share and revenue of $22.76 billion. These totals would mark changes of +5.93% and -1.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.02. For comparison, its industry has an average Forward P/E of 19.71, which means McDonald's is trading at a premium to the group.
Investors should also note that MCD has a PEG ratio of 3.11 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.