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) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, McDonald's (MCD - Free Report) closed at $266.34, marking a +0.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.27% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7% and the S&P 500's loss of 5.06% 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 $2.29 per share, which would represent year-over-year growth of 0.44%. Meanwhile, our latest consensus estimate is calling for revenue of $5.54 billion, down 2.25% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.51 per share and revenue of $24.27 billion, which would represent changes of +4.06% and +4.69%, respectively, from the prior year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. McDonald's currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 25.29 right now. Its industry sports an average Forward P/E of 21.14, so we one might conclude that McDonald's is trading at a premium comparatively.
Also, we should mention that MCD has a PEG ratio of 3.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.92 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 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Gains As Market Dips: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $266.34, marking a +0.17% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.27% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 7% and the S&P 500's loss of 5.06% 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 $2.29 per share, which would represent year-over-year growth of 0.44%. Meanwhile, our latest consensus estimate is calling for revenue of $5.54 billion, down 2.25% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.51 per share and revenue of $24.27 billion, which would represent changes of +4.06% and +4.69%, respectively, from the prior year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. McDonald's currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 25.29 right now. Its industry sports an average Forward P/E of 21.14, so we one might conclude that McDonald's is trading at a premium comparatively.
Also, we should mention that MCD has a PEG ratio of 3.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.92 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 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.