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McDonald's (MCD) Stock Moves -0.46%: What You Should Know

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McDonald's (MCD - Free Report) closed at $267.39 in the latest trading session, marking a -0.46% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.46%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 1.63%.

Prior to today's trading, shares of the world's biggest hamburger chain had lost 4.65% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.17% and the S&P 500's gain of 1.6% in that time.

The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is slated to reveal its earnings on April 30, 2024. In that report, analysts expect McDonald's to post earnings of $2.71 per share. This would mark year-over-year growth of 3.04%. At the same time, our most recent consensus estimate is projecting a revenue of $6.18 billion, reflecting a 4.79% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.35 per share and a revenue of $26.95 billion, indicating changes of +3.43% and +5.72%, respectively, from the former year.

Any recent changes to analyst estimates for McDonald's should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% downward. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).

In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 21.75. This expresses a premium compared to the average Forward P/E of 21.23 of its industry.

It is also worth noting that MCD currently has a PEG ratio of 2.91. 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 1.83.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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