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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed at $179.50 in the latest trading session, marking a +0.93% move from the prior day. This move outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.66%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 29.53% over the past month. This has outpaced the Retail-Wholesale sector's gain of 10.51% and the S&P 500's gain of 3.15% in that time.
Investors will be hoping for strength from MCD as it approaches its next earnings release, which is expected to be April 30, 2020. On that day, MCD is projected to report earnings of $1.60 per share, which would represent a year-over-year decline of 6.98%. Our most recent consensus estimate is calling for quarterly revenue of $4.72 billion, down 4.72% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $6.14 per share and revenue of $18.22 billion. These results would represent year-over-year changes of -21.68% and -13.56%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 28.12% lower. MCD is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, MCD is holding a Forward P/E ratio of 28.98. This valuation marks a premium compared to its industry's average Forward P/E of 25.02.
Also, we should mention that MCD has a PEG ratio of 3.87. 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 2.91 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $179.50 in the latest trading session, marking a +0.93% move from the prior day. This move outpaced the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.66%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 29.53% over the past month. This has outpaced the Retail-Wholesale sector's gain of 10.51% and the S&P 500's gain of 3.15% in that time.
Investors will be hoping for strength from MCD as it approaches its next earnings release, which is expected to be April 30, 2020. On that day, MCD is projected to report earnings of $1.60 per share, which would represent a year-over-year decline of 6.98%. Our most recent consensus estimate is calling for quarterly revenue of $4.72 billion, down 4.72% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $6.14 per share and revenue of $18.22 billion. These results would represent year-over-year changes of -21.68% and -13.56%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 28.12% lower. MCD is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, MCD is holding a Forward P/E ratio of 28.98. This valuation marks a premium compared to its industry's average Forward P/E of 25.02.
Also, we should mention that MCD has a PEG ratio of 3.87. 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 2.91 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 175, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.