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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 $247.90 in the latest trading session, marking a +1.77% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the world's biggest hamburger chain had lost 1.82% over the past month, lagging the Retail-Wholesale sector's gain of 4.03% and outpacing the S&P 500's loss of 4.31% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. On that day, McDonald's is projected to report earnings of $2.46 per share, which would represent year-over-year growth of 3.8%. Our most recent consensus estimate is calling for quarterly revenue of $5.85 billion, down 0.63% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.78 per share and revenue of $23.45 billion. These results would represent year-over-year changes of +5.39% and +0.98%, respectively.
Investors might also notice recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 24.91. Its industry sports an average Forward P/E of 17.71, so we one might conclude that McDonald's is trading at a premium comparatively.
Also, we should mention that MCD has a PEG ratio of 3.11. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
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 $247.90 in the latest trading session, marking a +1.77% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Meanwhile, the Dow gained 2.68%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the world's biggest hamburger chain had lost 1.82% over the past month, lagging the Retail-Wholesale sector's gain of 4.03% and outpacing the S&P 500's loss of 4.31% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. On that day, McDonald's is projected to report earnings of $2.46 per share, which would represent year-over-year growth of 3.8%. Our most recent consensus estimate is calling for quarterly revenue of $5.85 billion, down 0.63% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $9.78 per share and revenue of $23.45 billion. These results would represent year-over-year changes of +5.39% and +0.98%, respectively.
Investors might also notice recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 24.91. Its industry sports an average Forward P/E of 17.71, so we one might conclude that McDonald's is trading at a premium comparatively.
Also, we should mention that MCD has a PEG ratio of 3.11. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.