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McDonald's (MCD) Gains But Lags Market: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $269.29, marking a +0.26% move from the previous day. This change lagged the S&P 500's 1.19% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 0.38% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.04% and the S&P 500's gain of 4.06% in that time.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. The company is expected to report EPS of $2.45, up 9.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, down 4.96% from the year-ago period.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.32% higher. McDonald's is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.55. For comparison, its industry has an average Forward P/E of 22.01, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD has a PEG ratio of 3.13. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McDonald's (MCD) Gains But Lags Market: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $269.29, marking a +0.26% move from the previous day. This change lagged the S&P 500's 1.19% gain on the day. At the same time, the Dow added 0.76%, and the tech-heavy Nasdaq gained 0.29%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 0.38% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.04% and the S&P 500's gain of 4.06% in that time.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2023. The company is expected to report EPS of $2.45, up 9.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.71 billion, down 4.96% from the year-ago period.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.32% higher. McDonald's is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.55. For comparison, its industry has an average Forward P/E of 22.01, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD has a PEG ratio of 3.13. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.09 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.