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McDonald's (MCD) Gains But Lags Market: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $234.58, marking a +0.7% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day.
Coming into today, shares of the world's biggest hamburger chain had gained 3.91% in the past month. In that same time, the Retail-Wholesale sector lost 0.67%, while the S&P 500 gained 5.05%.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2021. The company is expected to report EPS of $1.81, up 23.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.05 billion, up 7.13% from the prior-year quarter.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8.42 per share and revenue of $22.1 billion. These results would represent year-over-year changes of +39.17% and +15.03%, respectively.
Investors should also note any 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. MCD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MCD currently has a Forward P/E ratio of 27.67. This represents a discount compared to its industry's average Forward P/E of 39.96.
We can also see that MCD currently has a PEG ratio of 3.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCD's industry had an average PEG ratio of 3.34 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.
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
In the latest trading session, McDonald's (MCD - Free Report) closed at $234.58, marking a +0.7% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day.
Coming into today, shares of the world's biggest hamburger chain had gained 3.91% in the past month. In that same time, the Retail-Wholesale sector lost 0.67%, while the S&P 500 gained 5.05%.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be April 29, 2021. The company is expected to report EPS of $1.81, up 23.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.05 billion, up 7.13% from the prior-year quarter.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8.42 per share and revenue of $22.1 billion. These results would represent year-over-year changes of +39.17% and +15.03%, respectively.
Investors should also note any 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.53% higher. MCD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MCD currently has a Forward P/E ratio of 27.67. This represents a discount compared to its industry's average Forward P/E of 39.96.
We can also see that MCD currently has a PEG ratio of 3.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCD's industry had an average PEG ratio of 3.34 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.