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McDonald's (MCD) Gains As Market Dips: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $264.33, marking a +0.3% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 2.97% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 6.99% and the S&P 500's loss of 5.57% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. On that day, McDonald's is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 9.42%. Our most recent consensus estimate is calling for quarterly revenue of $5.7 billion, down 5.2% from the year-ago period.
Investors might also notice 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. McDonald's is currently a Zacks Rank #4 (Sell).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.57. This represents a premium compared to its industry's average Forward P/E of 20.67.
Also, we should mention that MCD has a PEG ratio of 3.25. 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 2.18 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 171, which puts it in the bottom 33% 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 As Market Dips: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $264.33, marking a +0.3% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 4.72%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 2.97% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 6.99% and the S&P 500's loss of 5.57% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. On that day, McDonald's is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 9.42%. Our most recent consensus estimate is calling for quarterly revenue of $5.7 billion, down 5.2% from the year-ago period.
Investors might also notice 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% higher. McDonald's is currently a Zacks Rank #4 (Sell).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.57. This represents a premium compared to its industry's average Forward P/E of 20.67.
Also, we should mention that MCD has a PEG ratio of 3.25. 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 2.18 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 171, which puts it in the bottom 33% 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.