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McDonald's (MCD) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, McDonald's (MCD - Free Report) closed at $290.23, marking a +1.03% move from the previous day. This change outpaced the S&P 500's 0.45% gain on the day.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.82, marking an 8.88% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 9.35% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.75 per share and revenue of $25.57 billion. These totals would mark changes of +16.34% and +10.29%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 24.44 right now. This signifies a premium in comparison to the average Forward P/E of 22.03 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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McDonald's (MCD) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, McDonald's (MCD - Free Report) closed at $290.23, marking a +1.03% move from the previous day. This change outpaced the S&P 500's 0.45% gain on the day.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.82, marking an 8.88% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 9.35% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.75 per share and revenue of $25.57 billion. These totals would mark changes of +16.34% and +10.29%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 24.44 right now. This signifies a premium in comparison to the average Forward P/E of 22.03 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 45, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.