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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 $274.53, moving +0.09% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.4% in the past month. In that same time, the Retail-Wholesale sector gained 0.94%, while the S&P 500 gained 0.89%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.7 billion, down 5.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.92 per share and revenue of $22.93 billion. These totals would mark changes of +6.9% and -1.24%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 27.65. Its industry sports an average Forward P/E of 21.48, 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 3.39. 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 2.25 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% 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 As Market Dips: What You Should Know
McDonald's (MCD - Free Report) closed the most recent trading day at $274.53, moving +0.09% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.
Coming into today, shares of the world's biggest hamburger chain had gained 2.4% in the past month. In that same time, the Retail-Wholesale sector gained 0.94%, while the S&P 500 gained 0.89%.
McDonald's will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.44, up 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.7 billion, down 5.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.92 per share and revenue of $22.93 billion. These totals would mark changes of +6.9% and -1.24%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 27.65. Its industry sports an average Forward P/E of 21.48, 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 3.39. 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 2.25 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 37% 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.