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McDonald's (MCD) Ascends But Remains Behind Market: Some Facts to Note
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The most recent trading session ended with McDonald's (MCD - Free Report) standing at $254.28, reflecting a +0.19% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.27%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.88%.
Shares of the world's biggest hamburger chain witnessed a loss of 6.45% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.48% and the S&P 500's gain of 2.85%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.10, reflecting a 2.21% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 2.85% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.17 per share and revenue of $26.62 billion, which would represent changes of +1.93% and +4.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 20.86. This signifies a premium in comparison to the average Forward P/E of 19.13 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.86. 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 1.78.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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McDonald's (MCD) Ascends But Remains Behind Market: Some Facts to Note
The most recent trading session ended with McDonald's (MCD - Free Report) standing at $254.28, reflecting a +0.19% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.27%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq added 0.88%.
Shares of the world's biggest hamburger chain witnessed a loss of 6.45% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.48% and the S&P 500's gain of 2.85%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.10, reflecting a 2.21% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 2.85% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.17 per share and revenue of $26.62 billion, which would represent changes of +1.93% and +4.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 20.86. This signifies a premium in comparison to the average Forward P/E of 19.13 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.86. 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 1.78.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.