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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $280.94, marking a -0.07% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the world's biggest hamburger chain had lost 3.39% over the past month, lagging the Retail-Wholesale sector's loss of 0.88% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.98, up 11.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.56 billion, up 11.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.49 per share and revenue of $25.46 billion, which would represent changes of +13.76% and +9.82%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.32% higher. McDonald's currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 24.75. Its industry sports an average Forward P/E of 22.63, so we one might conclude that McDonald's is trading at a premium comparatively.
We can also see that MCD currently has a PEG ratio of 2.77. 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. MCD's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $280.94, marking a -0.07% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Heading into today, shares of the world's biggest hamburger chain had lost 3.39% over the past month, lagging the Retail-Wholesale sector's loss of 0.88% and the S&P 500's loss of 1.63% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.98, up 11.19% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.56 billion, up 11.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.49 per share and revenue of $25.46 billion, which would represent changes of +13.76% and +9.82%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.32% higher. McDonald's currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 24.75. Its industry sports an average Forward P/E of 22.63, so we one might conclude that McDonald's is trading at a premium comparatively.
We can also see that MCD currently has a PEG ratio of 2.77. 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. MCD's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.