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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) ended the recent trading session at $304.85, demonstrating a -1.59% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.1%.
Shares of the world's biggest hamburger chain have depreciated by 6.36% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.61%, and the S&P 500's loss of 1.74%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.75, signifying a 3.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.49 billion, indicating a 8.97% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.23 per share and a revenue of $28.71 billion, indicating changes of +8.44% and +6.79%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.42. This signifies a premium in comparison to the average Forward P/E of 19.2 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCD's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note
McDonald's (MCD - Free Report) ended the recent trading session at $304.85, demonstrating a -1.59% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.18%, and the technology-centric Nasdaq increased by 0.1%.
Shares of the world's biggest hamburger chain have depreciated by 6.36% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.61%, and the S&P 500's loss of 1.74%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.75, signifying a 3.00% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.49 billion, indicating a 8.97% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $13.23 per share and a revenue of $28.71 billion, indicating changes of +8.44% and +6.79%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Right now, McDonald's possesses a Zacks Rank of #3 (Hold).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 23.42. This signifies a premium in comparison to the average Forward P/E of 19.2 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 2.76. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MCD's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.