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Why the Market Dipped But McDonald's (MCD) Gained Today
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In the latest trading session, McDonald's (MCD - Free Report) closed at $296.51, marking a +0.23% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the world's biggest hamburger chain had gained 4.97% over the past month, lagging the Retail-Wholesale sector's gain of 6.15% and the S&P 500's gain of 5.24% in that time.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.82, showcasing an 8.88% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.48 billion, up 9.35% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.75 per share and revenue of $25.57 billion, indicating changes of +16.34% and +10.29%, respectively, compared to the previous 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.17. For comparison, its industry has an average Forward P/E of 22.29, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.99.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But McDonald's (MCD) Gained Today
In the latest trading session, McDonald's (MCD - Free Report) closed at $296.51, marking a +0.23% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the world's biggest hamburger chain had gained 4.97% over the past month, lagging the Retail-Wholesale sector's gain of 6.15% and the S&P 500's gain of 5.24% in that time.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.82, showcasing an 8.88% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.48 billion, up 9.35% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.75 per share and revenue of $25.57 billion, indicating changes of +16.34% and +10.29%, respectively, compared to the previous 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 25.17. For comparison, its industry has an average Forward P/E of 22.29, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.99.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.