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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed at $293.30 in the latest trading session, marking a -0.41% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.
Coming into today, shares of the world's biggest hamburger chain had gained 3.01% in the past month. In that same time, the Retail-Wholesale sector gained 3.11%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. In that report, analysts expect McDonald's to post earnings of $2.75 per share. This would mark 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 revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. McDonald's is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.64. For comparison, its industry has an average Forward P/E of 23.84, which means McDonald's is trading at a premium to the group.
It is also worth noting that MCD currently has a PEG ratio of 3.1. 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 1.98 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 33, which puts 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) Stock Sinks As Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $293.30 in the latest trading session, marking a -0.41% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.
Coming into today, shares of the world's biggest hamburger chain had gained 3.01% in the past month. In that same time, the Retail-Wholesale sector gained 3.11%, while the S&P 500 gained 4.31%.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. In that report, analysts expect McDonald's to post earnings of $2.75 per share. This would mark 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 revisions help to show the ever-changing nature of near-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. 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. McDonald's is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 26.64. For comparison, its industry has an average Forward P/E of 23.84, which means McDonald's is trading at a premium to the group.
It is also worth noting that MCD currently has a PEG ratio of 3.1. 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 1.98 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 33, which puts 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.