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McDonald's (MCD) Dips More Than Broader Market: What You Should Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $309.58, marking a -1.95% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.
The world's biggest hamburger chain's stock has dropped by 3.71% in the past month, exceeding the Retail-Wholesale sector's loss of 3.76% and lagging the S&P 500's loss of 3.59%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. In that report, analysts expect McDonald's to post earnings of $2.75 per share. This would mark year-over-year growth of 3%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.48 billion, indicating a 8.84% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.24 per share and a revenue of $28.71 billion, signifying shifts of +8.52% and +6.78%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 23.85. This valuation marks a premium compared to its industry average Forward P/E of 19.23.
Also, we should mention that MCD has a PEG ratio of 2.81. 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 industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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McDonald's (MCD) Dips More Than Broader Market: What You Should Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $309.58, marking a -1.95% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.44%, and the technology-centric Nasdaq decreased by 0.28%.
The world's biggest hamburger chain's stock has dropped by 3.71% in the past month, exceeding the Retail-Wholesale sector's loss of 3.76% and lagging the S&P 500's loss of 3.59%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. In that report, analysts expect McDonald's to post earnings of $2.75 per share. This would mark year-over-year growth of 3%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.48 billion, indicating a 8.84% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $13.24 per share and a revenue of $28.71 billion, signifying shifts of +8.52% and +6.78%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. McDonald's is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 23.85. This valuation marks a premium compared to its industry average Forward P/E of 19.23.
Also, we should mention that MCD has a PEG ratio of 2.81. 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 industry currently had an average PEG ratio of 1.9 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.