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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 $293.70 in the latest trading session, marking a +0.37% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.49% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 7.18% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. On that day, McDonald's is projected to report earnings of $2.75 per share, which would represent year-over-year growth of 7.84%. Our most recent consensus estimate is calling for quarterly revenue of $6.2 billion, up 8.4% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.05 per share and revenue of $24.97 billion. These results would represent year-over-year changes of +9.41% and +7.73%, respectively.
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. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. McDonald's is currently a Zacks Rank #2 (Buy).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 26.47. This represents a premium compared to its industry's average Forward P/E of 24.07.
Also, we should mention that MCD has a PEG ratio of 3.08. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.99 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 33, putting it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McDonald's (MCD) Gains As Market Dips: What You Should Know
McDonald's (MCD - Free Report) closed at $293.70 in the latest trading session, marking a +0.37% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.37%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.49% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 7.18% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. On that day, McDonald's is projected to report earnings of $2.75 per share, which would represent year-over-year growth of 7.84%. Our most recent consensus estimate is calling for quarterly revenue of $6.2 billion, up 8.4% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.05 per share and revenue of $24.97 billion. These results would represent year-over-year changes of +9.41% and +7.73%, respectively.
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. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. McDonald's is currently a Zacks Rank #2 (Buy).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 26.47. This represents a premium compared to its industry's average Forward P/E of 24.07.
Also, we should mention that MCD has a PEG ratio of 3.08. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.99 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 33, putting it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.