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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 the most recent trading day at $298.41, moving +1.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.29% in the past month. In that same time, the Retail-Wholesale sector gained 4.7%, while the S&P 500 gained 4.67%.
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 $2.75 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.
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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. 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 26.64. For comparison, its industry has an average Forward P/E of 24.35, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD 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. The Retail - Restaurants was holding an average PEG ratio of 2 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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) Outpaces Stock Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed the most recent trading day at $298.41, moving +1.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq lost 2.24%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.29% in the past month. In that same time, the Retail-Wholesale sector gained 4.7%, while the S&P 500 gained 4.67%.
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 $2.75 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.
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 revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. 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 26.64. For comparison, its industry has an average Forward P/E of 24.35, which means McDonald's is trading at a premium to the group.
Also, we should mention that MCD 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. The Retail - Restaurants was holding an average PEG ratio of 2 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 29, putting it in the top 12% 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.