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McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $272.46, marking a -0.82% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.31% over the past month. This has lagged the Retail-Wholesale sector's gain of 10.13% and the S&P 500's gain of 5.73% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, McDonald's is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 9.87%. Meanwhile, our latest consensus estimate is calling for revenue of $5.7 billion, down 5.08% from the prior-year quarter.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.98% higher within the past month. McDonald's is currently a Zacks Rank #2 (Buy).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.06. This represents a premium compared to its industry's average Forward P/E of 22.19.
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. The Retail - Restaurants industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $272.46, marking a -0.82% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.31% over the past month. This has lagged the Retail-Wholesale sector's gain of 10.13% and the S&P 500's gain of 5.73% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release, which is expected to be January 31, 2023. On that day, McDonald's is projected to report earnings of $2.45 per share, which would represent year-over-year growth of 9.87%. Meanwhile, our latest consensus estimate is calling for revenue of $5.7 billion, down 5.08% from the prior-year quarter.
Investors should also note any 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.98% higher within the past month. McDonald's is currently a Zacks Rank #2 (Buy).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 26.06. This represents a premium compared to its industry's average Forward P/E of 22.19.
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. The Retail - Restaurants industry currently had an average PEG ratio of 2.03 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.