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McDonald's (MCD) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $249.17, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.09%.
Coming into today, shares of the world's biggest hamburger chain had gained 10.73% in the past month. In that same time, the Retail-Wholesale sector gained 5.46%, while the S&P 500 gained 5.03%.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be April 28, 2022. On that day, McDonald's is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 14.58%. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 8.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.98 per share and revenue of $24.12 billion. These totals would mark changes of +7.54% and +3.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-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. 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 1.96% lower within the past month. McDonald's is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 25.1. This represents a premium compared to its industry's average Forward P/E of 21.25.
Investors should also note that MCD has a PEG ratio of 2.73 right now. 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 2.09 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% 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) Dips More Than Broader Markets: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $249.17, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.09%.
Coming into today, shares of the world's biggest hamburger chain had gained 10.73% in the past month. In that same time, the Retail-Wholesale sector gained 5.46%, while the S&P 500 gained 5.03%.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be April 28, 2022. On that day, McDonald's is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 14.58%. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 8.93% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.98 per share and revenue of $24.12 billion. These totals would mark changes of +7.54% and +3.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-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. 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 1.96% lower within the past month. McDonald's is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 25.1. This represents a premium compared to its industry's average Forward P/E of 21.25.
Investors should also note that MCD has a PEG ratio of 2.73 right now. 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 2.09 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 145, putting it in the bottom 43% 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.