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McDonald's (MCD) Stock Moves -0.17%: What You Should Know

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McDonald's (MCD - Free Report) closed the most recent trading day at $203.92, moving -0.17% from the previous trading session. This change traded in line with S&P 500. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.32%.

Heading into today, shares of the world's biggest hamburger chain had gained 2.66% over the past month, lagging the Retail-Wholesale sector's gain of 3.59% and the S&P 500's gain of 3.07% in that time.

Investors will be hoping for strength from MCD as it approaches its next earnings release. In that report, analysts expect MCD to post earnings of $2.05 per share. This would mark year-over-year growth of 3.02%. Our most recent consensus estimate is calling for quarterly revenue of $5.30 billion, down 0.92% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.04 per share and revenue of $21 billion. These totals would mark changes of +1.77% and -0.12%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MCD. 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. 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 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. MCD is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MCD is holding a Forward P/E ratio of 25.41. Its industry sports an average Forward P/E of 23.68, so we one might conclude that MCD is trading at a premium comparatively.

We can also see that MCD currently has a PEG ratio of 2.86. 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. MCD's industry had an average PEG ratio of 2.1 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 102, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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