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McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note
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McDonald's (MCD - Free Report) closed the most recent trading day at $305.94, moving -2.11% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.61% lagged the Retail-Wholesale sector's gain of 5% and outpaced the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.4, signifying a 5.26% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.07 billion, up 2.81% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.36 per share and revenue of $26.68 billion. These totals would mark changes of +5.46% and +2.94%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 0.19% higher. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 25.29. This indicates a premium in contrast to its industry's Forward P/E of 19.91.
It's also important to note that MCD currently trades at a PEG ratio of 3.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.31.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note
McDonald's (MCD - Free Report) closed the most recent trading day at $305.94, moving -2.11% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.61% lagged the Retail-Wholesale sector's gain of 5% and outpaced the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.4, signifying a 5.26% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.07 billion, up 2.81% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.36 per share and revenue of $26.68 billion. These totals would mark changes of +5.46% and +2.94%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 0.19% higher. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 25.29. This indicates a premium in contrast to its industry's Forward P/E of 19.91.
It's also important to note that MCD currently trades at a PEG ratio of 3.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.31.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.