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 Moves -0.27%: What You Should Know
Read MoreHide Full Article
In the latest trading session, McDonald's (MCD - Free Report) closed at $266.84, marking a -0.27% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.95% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 4.26% and the S&P 500's loss of 4.4% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $5.7 billion, down 5.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.92 per share and revenue of $22.93 billion, which would represent changes of +6.9% and -1.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.98. This valuation marks a premium compared to its industry's average Forward P/E of 20.76.
We can also see that MCD currently has a PEG ratio of 3.3. 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 was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Stock Moves -0.27%: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $266.84, marking a -0.27% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.41%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 6.67%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 1.95% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 4.26% and the S&P 500's loss of 4.4% in that time.
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. Our most recent consensus estimate is calling for quarterly revenue of $5.7 billion, down 5.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.92 per share and revenue of $22.93 billion, which would represent changes of +6.9% and -1.24%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.98. This valuation marks a premium compared to its industry's average Forward P/E of 20.76.
We can also see that MCD currently has a PEG ratio of 3.3. 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 was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.