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McDonald's (MCD) Stock Moves -0.39%: What You Should Know
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McDonald's (MCD - Free Report) closed at $249.77 in the latest trading session, marking a -0.39% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.13% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7.11% and the S&P 500's loss of 5.13% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be October 27, 2022. The company is expected to report EPS of $2.57, down 6.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, down 7.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.79 per share and revenue of $22.62 billion, which would represent changes of +5.5% and -2.58%, respectively, from the prior year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 25.61 right now. Its industry sports an average Forward P/E of 21.23, so we one might conclude that McDonald's is trading at a premium comparatively.
We can also see that MCD currently has a PEG ratio of 2.75. 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 1.9 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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McDonald's (MCD) Stock Moves -0.39%: What You Should Know
McDonald's (MCD - Free Report) closed at $249.77 in the latest trading session, marking a -0.39% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.13% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7.11% and the S&P 500's loss of 5.13% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be October 27, 2022. The company is expected to report EPS of $2.57, down 6.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, down 7.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.79 per share and revenue of $22.62 billion, which would represent changes of +5.5% and -2.58%, respectively, from the prior year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 25.61 right now. Its industry sports an average Forward P/E of 21.23, so we one might conclude that McDonald's is trading at a premium comparatively.
We can also see that MCD currently has a PEG ratio of 2.75. 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 1.9 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.