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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $184, marking a -1.8% move from the previous day. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.
Coming into today, shares of the world's biggest hamburger chain had gained 6.64% in the past month. In that same time, the Retail-Wholesale sector gained 15.41%, while the S&P 500 gained 12.44%.
Investors will be hoping for strength from MCD as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, MCD is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 10.53%. Our most recent consensus estimate is calling for quarterly revenue of $5.16 billion, down 3.44% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. MCD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 22.67 right now. This represents a premium compared to its industry's average Forward P/E of 21.71.
Also, we should mention that MCD has a PEG ratio of 2.58. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $184, marking a -1.8% move from the previous day. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow gained 0.75%, and the Nasdaq, a tech-heavy index, added 1.29%.
Coming into today, shares of the world's biggest hamburger chain had gained 6.64% in the past month. In that same time, the Retail-Wholesale sector gained 15.41%, while the S&P 500 gained 12.44%.
Investors will be hoping for strength from MCD as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, MCD is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 10.53%. Our most recent consensus estimate is calling for quarterly revenue of $5.16 billion, down 3.44% from the year-ago period.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. MCD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 22.67 right now. This represents a premium compared to its industry's average Forward P/E of 21.71.
Also, we should mention that MCD has a PEG ratio of 2.58. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 36% 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.