We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's (MCD) Rises Higher Than Market: Key Facts
Read MoreHide Full Article
McDonald's (MCD - Free Report) closed the most recent trading day at $294.09, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow experienced a rise of 0.46%, and the technology-dominated Nasdaq saw an increase of 0.75%.
The world's biggest hamburger chain's shares have seen a decrease of 0.19% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2024. The company's upcoming EPS is projected at $2.82, signifying an 8.88% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 9.3% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 23.34. This denotes a premium relative to the industry's average Forward P/E of 18.98.
We can additionally observe that MCD currently boasts a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Rises Higher Than Market: Key Facts
McDonald's (MCD - Free Report) closed the most recent trading day at $294.09, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.57% gain on the day. Meanwhile, the Dow experienced a rise of 0.46%, and the technology-dominated Nasdaq saw an increase of 0.75%.
The world's biggest hamburger chain's shares have seen a decrease of 0.19% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on February 5, 2024. The company's upcoming EPS is projected at $2.82, signifying an 8.88% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.48 billion, showing a 9.3% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 23.34. This denotes a premium relative to the industry's average Forward P/E of 18.98.
We can additionally observe that MCD currently boasts a PEG ratio of 2.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.