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McDonald's (MCD) Rises Higher Than Market: Key Facts
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The latest trading session saw McDonald's (MCD - Free Report) ending at $282.02, denoting a +1.22% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.86%. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
The world's biggest hamburger chain's stock has dropped by 5.15% in the past month, falling short of the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is predicted to post an EPS of $2.71, indicating a 3.04% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.18 billion, indicating a 4.79% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.38 per share and revenue of $26.95 billion, which would represent changes of +3.69% and +5.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, the Zacks Consensus EPS estimate has shifted 0.03% upward. McDonald's currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 22.5. This signifies a premium in comparison to the average Forward P/E of 20.05 for its industry.
One should further note that MCD currently holds a PEG ratio of 3.01. 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 1.8 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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McDonald's (MCD) Rises Higher Than Market: Key Facts
The latest trading session saw McDonald's (MCD - Free Report) ending at $282.02, denoting a +1.22% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.86%. On the other hand, the Dow registered a gain of 1.22%, and the technology-centric Nasdaq increased by 0.51%.
The world's biggest hamburger chain's stock has dropped by 5.15% in the past month, falling short of the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is predicted to post an EPS of $2.71, indicating a 3.04% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.18 billion, indicating a 4.79% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.38 per share and revenue of $26.95 billion, which would represent changes of +3.69% and +5.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, the Zacks Consensus EPS estimate has shifted 0.03% upward. McDonald's currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 22.5. This signifies a premium in comparison to the average Forward P/E of 20.05 for its industry.
One should further note that MCD currently holds a PEG ratio of 3.01. 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 1.8 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.