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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed at $273.84 in the latest trading session, marking a +0.93% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 2.9% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.16% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $5.54 billion, down 2.25% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. 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. 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 0.25% lower. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.82. This represents a premium compared to its industry's average Forward P/E of 21.43.
Investors should also note that MCD has a PEG ratio of 3.2 right now. 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 1.94 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $273.84 in the latest trading session, marking a +0.93% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 2.9% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.16% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $5.54 billion, down 2.25% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. 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. 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 0.25% lower. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.82. This represents a premium compared to its industry's average Forward P/E of 21.43.
Investors should also note that MCD has a PEG ratio of 3.2 right now. 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 1.94 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.