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McDonald's (MCD) Ascends While Market Falls: Some Facts to Note
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McDonald's (MCD - Free Report) closed at $256.03 in the latest trading session, marking a +1.95% move from the prior day. This change outpaced the S&P 500's 1.34% loss on the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.62%.
Heading into today, shares of the world's biggest hamburger chain had lost 9.7% over the past month, lagging the Retail-Wholesale sector's loss of 4.5% and the S&P 500's loss of 1.57% in that time.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2023. The company is forecasted to report an EPS of $2.99, showcasing a 11.57% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.57 billion, up 11.9% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.52 per share and a revenue of $25.46 billion, indicating changes of +14.06% and +9.83%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 shifted 0.03% upward. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 21.8. This denotes a premium relative to the industry's average Forward P/E of 19.17.
Investors should also note that MCD has a PEG ratio of 2.44 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McDonald's (MCD) Ascends While Market Falls: Some Facts to Note
McDonald's (MCD - Free Report) closed at $256.03 in the latest trading session, marking a +1.95% move from the prior day. This change outpaced the S&P 500's 1.34% loss on the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 1.62%.
Heading into today, shares of the world's biggest hamburger chain had lost 9.7% over the past month, lagging the Retail-Wholesale sector's loss of 4.5% and the S&P 500's loss of 1.57% in that time.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to go public on October 30, 2023. The company is forecasted to report an EPS of $2.99, showcasing a 11.57% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.57 billion, up 11.9% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.52 per share and a revenue of $25.46 billion, indicating changes of +14.06% and +9.83%, respectively, from the former year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 shifted 0.03% upward. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 21.8. This denotes a premium relative to the industry's average Forward P/E of 19.17.
Investors should also note that MCD has a PEG ratio of 2.44 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.