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McDonald's (MCD) Surpasses Market Returns: Some Facts Worth Knowing
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McDonald's (MCD - Free Report) ended the recent trading session at $291.55, demonstrating a +2.07% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.52%.
The world's biggest hamburger chain's stock has dropped by 8.41% in the past month, falling short of the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 5.95%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.14, reflecting a 5.72% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.7 billion, showing a 3.18% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.25 per share and a revenue of $26.35 billion, signifying shifts of +4.52% and +1.64%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 23.33. For comparison, its industry has an average Forward P/E of 22.21, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.59.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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McDonald's (MCD) Surpasses Market Returns: Some Facts Worth Knowing
McDonald's (MCD - Free Report) ended the recent trading session at $291.55, demonstrating a +2.07% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.52%.
The world's biggest hamburger chain's stock has dropped by 8.41% in the past month, falling short of the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 5.95%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.14, reflecting a 5.72% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.7 billion, showing a 3.18% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.25 per share and a revenue of $26.35 billion, signifying shifts of +4.52% and +1.64%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. As of now, McDonald's holds a Zacks Rank of #3 (Hold).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 23.33. For comparison, its industry has an average Forward P/E of 22.21, which means McDonald's is trading at a premium to the group.
We can additionally observe that MCD currently boasts a PEG ratio of 2.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.59.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.