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McDonald's (MCD) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $311.70, marking a +1.25% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 0.77%.
Shares of the world's biggest hamburger chain witnessed a loss of 7.57% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.96%, and the S&P 500's loss of 4.71%.
The upcoming earnings release of McDonald's will be of great interest to investors. It is anticipated that the company will report an EPS of $2.75, marking a 3% rise compared to the same quarter of the previous year. 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 full year, the Zacks Consensus Estimates project earnings of $13.23 per share and a revenue of $28.71 billion, demonstrating changes of +8.44% and +6.78%, respectively, from the preceding 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 23.26 right now. This valuation marks a premium compared to its industry average Forward P/E of 18.56.
It is also worth noting that MCD currently has a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.89.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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McDonald's (MCD) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $311.70, marking a +1.25% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 0.77%.
Shares of the world's biggest hamburger chain witnessed a loss of 7.57% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.96%, and the S&P 500's loss of 4.71%.
The upcoming earnings release of McDonald's will be of great interest to investors. It is anticipated that the company will report an EPS of $2.75, marking a 3% rise compared to the same quarter of the previous year. 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 full year, the Zacks Consensus Estimates project earnings of $13.23 per share and a revenue of $28.71 billion, demonstrating changes of +8.44% and +6.78%, respectively, from the preceding 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 23.26 right now. This valuation marks a premium compared to its industry average Forward P/E of 18.56.
It is also worth noting that MCD currently has a PEG ratio of 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.89.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.