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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 $291.74 in the latest trading session, marking a +0.15% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.24% in the past month. In that same time, the Retail-Wholesale sector gained 5.35%, while the S&P 500 gained 4.22%.
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 $2.75 per share, which would represent year-over-year growth of 7.84%. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 8.4% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.05 per share and revenue of $24.97 billion, which would represent changes of +9.41% and +7.73%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 26.35. Its industry sports an average Forward P/E of 23.91, so we one might conclude that McDonald's is trading at a premium comparatively.
Investors should also note that MCD has a PEG ratio of 3.07 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 1.96 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.
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 $291.74 in the latest trading session, marking a +0.15% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 2.93%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.24% in the past month. In that same time, the Retail-Wholesale sector gained 5.35%, while the S&P 500 gained 4.22%.
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 $2.75 per share, which would represent year-over-year growth of 7.84%. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 8.4% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.05 per share and revenue of $24.97 billion, which would represent changes of +9.41% and +7.73%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 26.35. Its industry sports an average Forward P/E of 23.91, so we one might conclude that McDonald's is trading at a premium comparatively.
Investors should also note that MCD has a PEG ratio of 3.07 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 1.96 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.