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McDonald's (MCD) Gains But Lags Market: What You Should Know
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McDonald's (MCD - Free Report) closed at $164.07 in the latest trading session, marking a +0.24% move from the prior day. This move lagged the S&P 500's daily gain of 2.15%. Meanwhile, the Dow gained 2.17%, and the Nasdaq, a tech-heavy index, added 2.89%.
Heading into today, shares of the world's biggest hamburger chain had gained 3.5% over the past month, outpacing the Retail-Wholesale sector's loss of 9.79% and the S&P 500's loss of 5.16% in that time.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be October 23, 2018. In that report, analysts expect MCD to post earnings of $1.99 per share. This would mark year-over-year growth of 13.07%. Our most recent consensus estimate is calling for quarterly revenue of $5.28 billion, down 8.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.65 per share and revenue of $20.97 billion, which would represent changes of +14.86% and -8.1%, respectively, from the prior year.
Any recent changes to analyst estimates for MCD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. MCD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MCD is holding a Forward P/E ratio of 21.39. For comparison, its industry has an average Forward P/E of 22.08, which means MCD is trading at a discount to the group.
Meanwhile, MCD's PEG ratio is currently 2.43. 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 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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McDonald's (MCD) Gains But Lags Market: What You Should Know
McDonald's (MCD - Free Report) closed at $164.07 in the latest trading session, marking a +0.24% move from the prior day. This move lagged the S&P 500's daily gain of 2.15%. Meanwhile, the Dow gained 2.17%, and the Nasdaq, a tech-heavy index, added 2.89%.
Heading into today, shares of the world's biggest hamburger chain had gained 3.5% over the past month, outpacing the Retail-Wholesale sector's loss of 9.79% and the S&P 500's loss of 5.16% in that time.
Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be October 23, 2018. In that report, analysts expect MCD to post earnings of $1.99 per share. This would mark year-over-year growth of 13.07%. Our most recent consensus estimate is calling for quarterly revenue of $5.28 billion, down 8.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.65 per share and revenue of $20.97 billion, which would represent changes of +14.86% and -8.1%, respectively, from the prior year.
Any recent changes to analyst estimates for MCD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. MCD is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MCD is holding a Forward P/E ratio of 21.39. For comparison, its industry has an average Forward P/E of 22.08, which means MCD is trading at a discount to the group.
Meanwhile, MCD's PEG ratio is currently 2.43. 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 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.