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McDonald's (MCD) Gains As Market Dips: What You Should Know
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McDonald's (MCD - Free Report) closed at $274.11 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 1.15% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.12% and the S&P 500's gain of 4.01% 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 January 31, 2023. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, down 4.98% from the year-ago period.
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. 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. 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 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 currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.73. This represents a premium compared to its industry's average Forward P/E of 21.89.
We can also see that MCD currently has a PEG ratio of 3.15. 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. MCD's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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) Gains As Market Dips: What You Should Know
McDonald's (MCD - Free Report) closed at $274.11 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 1.15% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.12% and the S&P 500's gain of 4.01% 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 January 31, 2023. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.71 billion, down 4.98% from the year-ago period.
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. 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. 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 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 currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.73. This represents a premium compared to its industry's average Forward P/E of 21.89.
We can also see that MCD currently has a PEG ratio of 3.15. 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. MCD's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.