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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 $307.29, marking a -1.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 6.44% lagged the Retail-Wholesale sector's loss of 4.19% and the S&P 500's loss of 4.99%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.75, reflecting a 3% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.48 billion, reflecting a 8.84% rise from the equivalent quarter last year.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $13.23 per share and revenue of $28.71 billion. These results would represent year-over-year changes of +8.44% and +6.78%, respectively.
Investors should also note any recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 23.49. This signifies a premium in comparison to the average Forward P/E of 18.82 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 2.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.83.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 25% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.
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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 $307.29, marking a -1.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 6.44% lagged the Retail-Wholesale sector's loss of 4.19% and the S&P 500's loss of 4.99%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.75, reflecting a 3% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.48 billion, reflecting a 8.84% rise from the equivalent quarter last year.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $13.23 per share and revenue of $28.71 billion. These results would represent year-over-year changes of +8.44% and +6.78%, respectively.
Investors should also note any recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% lower. McDonald's is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 23.49. This signifies a premium in comparison to the average Forward P/E of 18.82 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 2.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.83.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 25% 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.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.