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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
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McDonald's (MCD - Free Report) closed at $255.40 in the latest trading session, marking a +1.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.61%. At the same time, the Dow added 1.45%, and the tech-heavy Nasdaq gained 0.36%.
Coming into today, shares of the world's biggest hamburger chain had gained 6.69% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 1.42%.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $2.19, up 14.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 8.93% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $24.11 billion. These results would represent year-over-year changes of +6.79% and +3.8%, respectively.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 1.48% lower within the past month. McDonald's is currently a Zacks Rank #4 (Sell).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 25.33. This represents a premium compared to its industry's average Forward P/E of 21.25.
It is also worth noting that MCD currently has a PEG ratio of 2.94. 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. 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Outpaces Stock Market Gains: What You Should Know
McDonald's (MCD - Free Report) closed at $255.40 in the latest trading session, marking a +1.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.61%. At the same time, the Dow added 1.45%, and the tech-heavy Nasdaq gained 0.36%.
Coming into today, shares of the world's biggest hamburger chain had gained 6.69% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 1.42%.
McDonald's will be looking to display strength as it nears its next earnings release, which is expected to be April 28, 2022. The company is expected to report EPS of $2.19, up 14.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.58 billion, up 8.93% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $24.11 billion. These results would represent year-over-year changes of +6.79% and +3.8%, respectively.
Investors should also note any recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 1.48% lower within the past month. McDonald's is currently a Zacks Rank #4 (Sell).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 25.33. This represents a premium compared to its industry's average Forward P/E of 21.25.
It is also worth noting that MCD currently has a PEG ratio of 2.94. 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. 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.