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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $209.58, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the world's biggest hamburger chain had gained 3.78% over the past month, lagging the Retail-Wholesale sector's gain of 9.29% and the S&P 500's gain of 7.86% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2019. On that day, MCD is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 3.52%. Our most recent consensus estimate is calling for quarterly revenue of $5.32 billion, down 0.62% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8.06 per share and revenue of $21.03 billion. These results would represent year-over-year changes of +2.03% and +0.02%, respectively.
Investors might also notice recent changes to analyst estimates for MCD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.23% higher within the past month. MCD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MCD currently has a Forward P/E ratio of 25.6. Its industry sports an average Forward P/E of 23.73, so we one might conclude that MCD is trading at a premium comparatively.
Investors should also note that MCD has a PEG ratio of 2.88 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $209.58, marking a +1.59% move from the previous day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.22%.
Heading into today, shares of the world's biggest hamburger chain had gained 3.78% over the past month, lagging the Retail-Wholesale sector's gain of 9.29% and the S&P 500's gain of 7.86% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2019. On that day, MCD is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 3.52%. Our most recent consensus estimate is calling for quarterly revenue of $5.32 billion, down 0.62% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8.06 per share and revenue of $21.03 billion. These results would represent year-over-year changes of +2.03% and +0.02%, respectively.
Investors might also notice recent changes to analyst estimates for MCD. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.23% higher within the past month. MCD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MCD currently has a Forward P/E ratio of 25.6. Its industry sports an average Forward P/E of 23.73, so we one might conclude that MCD is trading at a premium comparatively.
Investors should also note that MCD has a PEG ratio of 2.88 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.