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McDonald's (MCD) Gains But Lags Market: What You Should Know
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McDonald's (MCD - Free Report) closed at $268.16 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.06%.
Coming into today, shares of the world's biggest hamburger chain had lost 2.73% in the past month. In that same time, the Retail-Wholesale sector lost 4.13%, while the S&P 500 lost 3.49%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.7 billion, down 5.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.92 per share and revenue of $22.93 billion. These totals would mark changes of +6.9% and -1.24%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for 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 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 0.08% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.94. This valuation marks a premium compared to its industry's average Forward P/E of 20.65.
It is also worth noting that MCD currently has a PEG ratio of 3.3. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.18 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 172, which puts it in the bottom 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) Gains But Lags Market: What You Should Know
McDonald's (MCD - Free Report) closed at $268.16 in the latest trading session, marking a +0.34% move from the prior day. The stock lagged the S&P 500's daily gain of 1.49%. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 0.06%.
Coming into today, shares of the world's biggest hamburger chain had lost 2.73% in the past month. In that same time, the Retail-Wholesale sector lost 4.13%, while the S&P 500 lost 3.49%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.7 billion, down 5.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.92 per share and revenue of $22.93 billion. These totals would mark changes of +6.9% and -1.24%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for 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 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 0.08% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.94. This valuation marks a premium compared to its industry's average Forward P/E of 20.65.
It is also worth noting that MCD currently has a PEG ratio of 3.3. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.18 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 172, which puts it in the bottom 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.