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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 $278.13 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 0.22%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Heading into today, shares of the world's biggest hamburger chain had lost 0.83% over the past month, lagging the Retail-Wholesale sector's gain of 1.57% and the S&P 500's gain of 2.08% in that time.
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 $2.98 per share. This would mark 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.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.52 per share and revenue of $25.46 billion. These results would represent year-over-year changes of +14.06% and +9.82%, respectively.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.27% higher. 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 24.11. Its industry sports an average Forward P/E of 21.52, 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 2.7. 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 industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% 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 $278.13 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 0.22%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Heading into today, shares of the world's biggest hamburger chain had lost 0.83% over the past month, lagging the Retail-Wholesale sector's gain of 1.57% and the S&P 500's gain of 2.08% in that time.
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 $2.98 per share. This would mark 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.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.52 per share and revenue of $25.46 billion. These results would represent year-over-year changes of +14.06% and +9.82%, respectively.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.27% higher. 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 24.11. Its industry sports an average Forward P/E of 21.52, 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 2.7. 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 industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% 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.