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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 $278.33 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.44% in the past month. In that same time, the Retail-Wholesale sector lost 1.56%, while the S&P 500 lost 0.12%.
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 $2.98 per share, which would represent year-over-year growth of 11.19%. 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.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-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. 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.
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 0.32% higher within the past month. McDonald's currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.98. Its industry sports an average Forward P/E of 21.71, 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 2.68 right now. 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 industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McDonald's (MCD) Gains As Market Dips: What You Should Know
McDonald's (MCD - Free Report) closed at $278.33 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.89%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.44% in the past month. In that same time, the Retail-Wholesale sector lost 1.56%, while the S&P 500 lost 0.12%.
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 $2.98 per share, which would represent year-over-year growth of 11.19%. 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.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-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. 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.
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 0.32% higher within the past month. McDonald's currently has a Zacks Rank of #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.98. Its industry sports an average Forward P/E of 21.71, 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 2.68 right now. 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 industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.