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McDonald's (MCD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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McDonald's (MCD - Free Report) ended the recent trading session at $264.54, demonstrating a -3.41% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.
The world's biggest hamburger chain's shares have seen a decrease of 2.51% over the last month, surpassing the Retail-Wholesale sector's loss of 5.64% and falling behind the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.34, marking a 4.7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 4.53% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.93 per share and revenue of $28.42 billion, which would represent changes of +5.98% and +5.71%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. At present, McDonald's boasts a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 21.19. This denotes a premium relative to the industry average Forward P/E of 19.32.
It's also important to note that MCD currently trades at a PEG ratio of 2.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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McDonald's (MCD) Sees a More Significant Dip Than Broader Market: Some Facts to Know
McDonald's (MCD - Free Report) ended the recent trading session at $264.54, demonstrating a -3.41% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.
The world's biggest hamburger chain's shares have seen a decrease of 2.51% over the last month, surpassing the Retail-Wholesale sector's loss of 5.64% and falling behind the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.34, marking a 4.7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 4.53% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.93 per share and revenue of $28.42 billion, which would represent changes of +5.98% and +5.71%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. At present, McDonald's boasts a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 21.19. This denotes a premium relative to the industry average Forward P/E of 19.32.
It's also important to note that MCD currently trades at a PEG ratio of 2.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.