We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's (MCD) Declines More Than Market: Some Information for Investors
Read MoreHide Full Article
In the latest trading session, McDonald's (MCD - Free Report) closed at $291.74, marking a -0.9% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.56%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 2.63% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.02% and outpaced the S&P 500's gain of 2.56% in that time.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's upcoming EPS is projected at $2.82, signifying an 8.88% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.48 billion, indicating a 9.26% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. McDonald's presently features a Zacks Rank of #3 (Hold).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 23.63. For comparison, its industry has an average Forward P/E of 19.74, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Declines More Than Market: Some Information for Investors
In the latest trading session, McDonald's (MCD - Free Report) closed at $291.74, marking a -0.9% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.56%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 2.63% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.02% and outpaced the S&P 500's gain of 2.56% in that time.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's upcoming EPS is projected at $2.82, signifying an 8.88% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.48 billion, indicating a 9.26% upward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. McDonald's presently features a Zacks Rank of #3 (Hold).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 23.63. For comparison, its industry has an average Forward P/E of 19.74, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 96, this industry ranks in the top 39% 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.