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McDonald's (MCD) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $296.29, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
Coming into today, shares of the world's biggest hamburger chain had lost 5.24% in the past month. In that same time, the Retail-Wholesale sector lost 3.2%, while the S&P 500 gained 1.67%.
The upcoming earnings release of McDonald's will be of great interest to investors. In that report, analysts expect McDonald's to post earnings of $3.14 per share. This would mark year-over-year growth of 5.72%. Our most recent consensus estimate is calling for quarterly revenue of $6.7 billion, up 3.18% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.25 per share and revenue of $26.35 billion. These totals would mark changes of +4.52% and +1.64%, respectively, from last 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 24.66. This represents a premium compared to its industry average Forward P/E of 23.21.
Meanwhile, MCD's PEG ratio is currently 3.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MCD's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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McDonald's (MCD) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $296.29, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
Coming into today, shares of the world's biggest hamburger chain had lost 5.24% in the past month. In that same time, the Retail-Wholesale sector lost 3.2%, while the S&P 500 gained 1.67%.
The upcoming earnings release of McDonald's will be of great interest to investors. In that report, analysts expect McDonald's to post earnings of $3.14 per share. This would mark year-over-year growth of 5.72%. Our most recent consensus estimate is calling for quarterly revenue of $6.7 billion, up 3.18% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.25 per share and revenue of $26.35 billion. These totals would mark changes of +4.52% and +1.64%, respectively, from last 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. McDonald's currently has a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 24.66. This represents a premium compared to its industry average Forward P/E of 23.21.
Meanwhile, MCD's PEG ratio is currently 3.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MCD's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.