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) Stock Dips While Market Gains: Key Facts
Read MoreHide Full Article
McDonald's (MCD - Free Report) closed at $278.58 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.
The world's biggest hamburger chain's shares have seen a decrease of 4.41% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.64% and the S&P 500's gain of 1.76%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is forecasted to report an EPS of $2.72, showcasing a 3.42% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 4.86% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.38 per share and revenue of $26.96 billion. These totals would mark changes of +3.69% and +5.75%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 22.55. This denotes a premium relative to the industry's average Forward P/E of 20.9.
Investors should also note that MCD has a PEG ratio of 3.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.01.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's (MCD) Stock Dips While Market Gains: Key Facts
McDonald's (MCD - Free Report) closed at $278.58 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.
The world's biggest hamburger chain's shares have seen a decrease of 4.41% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.64% and the S&P 500's gain of 1.76%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is forecasted to report an EPS of $2.72, showcasing a 3.42% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 4.86% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.38 per share and revenue of $26.96 billion. These totals would mark changes of +3.69% and +5.75%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 22.55. This denotes a premium relative to the industry's average Forward P/E of 20.9.
Investors should also note that MCD has a PEG ratio of 3.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.01.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.