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McDonald's (MCD) Gains As Market Dips: What You Should Know
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McDonald's (MCD - Free Report) closed the most recent trading day at $253.99, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.93% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the world's biggest hamburger chain had gained 4.06% over the past month, lagging the Retail-Wholesale sector's gain of 9.23% and the S&P 500's gain of 6.31% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be July 26, 2022. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $5.88 billion, down 0.09% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.75 per share and revenue of $23.41 billion, which would represent changes of +5.06% and +0.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 25.99. Its industry sports an average Forward P/E of 18, so we one might conclude that McDonald's is trading at a premium comparatively.
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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.9 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 213, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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McDonald's (MCD) Gains As Market Dips: What You Should Know
McDonald's (MCD - Free Report) closed the most recent trading day at $253.99, moving +0.21% from the previous trading session. This change outpaced the S&P 500's 0.93% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the world's biggest hamburger chain had gained 4.06% over the past month, lagging the Retail-Wholesale sector's gain of 9.23% and the S&P 500's gain of 6.31% in that time.
Wall Street will be looking for positivity from McDonald's as it approaches its next earnings report date. This is expected to be July 26, 2022. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $5.88 billion, down 0.09% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.75 per share and revenue of $23.41 billion, which would represent changes of +5.06% and +0.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 25.99. Its industry sports an average Forward P/E of 18, so we one might conclude that McDonald's is trading at a premium comparatively.
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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.9 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 213, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.