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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 $225.21 in the latest trading session, marking a +0.45% move from the prior day. This change lagged the S&P 500's 1.66% gain on the day. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.24%.
Heading into today, shares of the world's biggest hamburger chain had gained 6.28% over the past month, outpacing the Retail-Wholesale sector's gain of 0.31% and the S&P 500's gain of 1.91% in that time.
MCD will be looking to display strength as it nears its next earnings release. On that day, MCD is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 21.09%. Our most recent consensus estimate is calling for quarterly revenue of $5 billion, up 6.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $22.02 billion. These totals would mark changes of +38.51% and +14.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MCD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. MCD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 26.74 right now. This represents a discount compared to its industry's average Forward P/E of 37.88.
It is also worth noting that MCD currently has a PEG ratio of 3.09. 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. The Retail - Restaurants was holding an average PEG ratio of 3.16 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 45% 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.
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McDonald's (MCD) Gains But Lags Market: What You Should Know
McDonald's (MCD - Free Report) closed at $225.21 in the latest trading session, marking a +0.45% move from the prior day. This change lagged the S&P 500's 1.66% gain on the day. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.24%.
Heading into today, shares of the world's biggest hamburger chain had gained 6.28% over the past month, outpacing the Retail-Wholesale sector's gain of 0.31% and the S&P 500's gain of 1.91% in that time.
MCD will be looking to display strength as it nears its next earnings release. On that day, MCD is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 21.09%. Our most recent consensus estimate is calling for quarterly revenue of $5 billion, up 6.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $22.02 billion. These totals would mark changes of +38.51% and +14.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MCD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. MCD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 26.74 right now. This represents a discount compared to its industry's average Forward P/E of 37.88.
It is also worth noting that MCD currently has a PEG ratio of 3.09. 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. The Retail - Restaurants was holding an average PEG ratio of 3.16 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 142, which puts it in the bottom 45% 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.