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) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
McDonald's (MCD - Free Report) closed at $211 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 1.48% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.09% and the S&P 500's gain of 0.83% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2021. In that report, analysts expect MCD to post earnings of $1.78 per share. This would mark a year-over-year decline of 9.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, up 0.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. MCD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MCD's current valuation metrics, including its Forward P/E ratio of 25.58. This valuation marks a discount compared to its industry's average Forward P/E of 29.14.
Also, we should mention that MCD has a PEG ratio of 3.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCD's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 122, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $211 in the latest trading session, marking a -0.23% move from the prior day. This change lagged the S&P 500's daily gain of 0.57%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 1.48% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.09% and the S&P 500's gain of 0.83% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2021. In that report, analysts expect MCD to post earnings of $1.78 per share. This would mark a year-over-year decline of 9.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, up 0.06% from the year-ago period.
It is also important to note the recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. MCD is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MCD's current valuation metrics, including its Forward P/E ratio of 25.58. This valuation marks a discount compared to its industry's average Forward P/E of 29.14.
Also, we should mention that MCD has a PEG ratio of 3.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MCD's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 122, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.