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McDonald's (MCD) Stock Moves -0.76%: What You Should Know
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McDonald's (MCD - Free Report) closed at $267.72 in the latest trading session, marking a -0.76% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 1.57%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.9% in the past month. In that same time, the Retail-Wholesale sector lost 1.09%, while the S&P 500 lost 1.43%.
Investors will be hoping for strength from McDonald's as it approaches 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, our latest consensus estimate is calling for revenue of $6.56 billion, up 11.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.52 per share and revenue of $25.45 billion. These totals would mark changes of +14.06% and +9.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. 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 0.27% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 23.42. This represents a premium compared to its industry's average Forward P/E of 20.73.
It is also worth noting that MCD currently has a PEG ratio of 2.62. 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 1.66 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 75, which puts it in the top 30% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Stock Moves -0.76%: What You Should Know
McDonald's (MCD - Free Report) closed at $267.72 in the latest trading session, marking a -0.76% move from the prior day. This change was narrower than the S&P 500's 1.47% loss on the day. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq lost 1.57%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.9% in the past month. In that same time, the Retail-Wholesale sector lost 1.09%, while the S&P 500 lost 1.43%.
Investors will be hoping for strength from McDonald's as it approaches 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, our latest consensus estimate is calling for revenue of $6.56 billion, up 11.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.52 per share and revenue of $25.45 billion. These totals would mark changes of +14.06% and +9.79%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. 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 0.27% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 23.42. This represents a premium compared to its industry's average Forward P/E of 20.73.
It is also worth noting that MCD currently has a PEG ratio of 2.62. 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 1.66 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 75, which puts it in the top 30% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.