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Why McDonald's (MCD) Outpaced the Stock Market Today
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In the latest trading session, McDonald's (MCD - Free Report) closed at $294.36, marking a +1.1% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.
Heading into today, shares of the world's biggest hamburger chain had gained 0.75% over the past month, outpacing the Retail-Wholesale sector's gain of 0.38% and the S&P 500's gain of 0.64% 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's earnings report is set to go public on February 5, 2024. The company is expected to report EPS of $2.81, up 8.49% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.48 billion, indicating a 9.33% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. McDonald's is currently a Zacks Rank #3 (Hold).
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 23.36. This expresses a premium compared to the average Forward P/E of 17.78 of its industry.
We can additionally observe that MCD currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MCD's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 106, this industry ranks in the top 43% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why McDonald's (MCD) Outpaced the Stock Market Today
In the latest trading session, McDonald's (MCD - Free Report) closed at $294.36, marking a +1.1% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.
Heading into today, shares of the world's biggest hamburger chain had gained 0.75% over the past month, outpacing the Retail-Wholesale sector's gain of 0.38% and the S&P 500's gain of 0.64% 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's earnings report is set to go public on February 5, 2024. The company is expected to report EPS of $2.81, up 8.49% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $6.48 billion, indicating a 9.33% increase compared to the same quarter of the previous year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. McDonald's is currently a Zacks Rank #3 (Hold).
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 23.36. This expresses a premium compared to the average Forward P/E of 17.78 of its industry.
We can additionally observe that MCD currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MCD's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 106, this industry ranks in the top 43% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.