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McDonald's (MCD) Registers a Bigger Fall Than the Market: Important Facts to Note
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McDonald's (MCD - Free Report) ended the recent trading session at $278.25, demonstrating a -1.4% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the world's biggest hamburger chain had lost 0.01% over the past month, lagging the Retail-Wholesale sector's gain of 0.18% and the S&P 500's gain of 1.64%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company is expected to report EPS of $3.34, up 4.7% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $7.15 billion, showing a 4.53% escalation compared to the year-ago quarter.
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.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. McDonald's is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 21.83. This signifies a premium in comparison to the average Forward P/E of 20.29 for its industry.
Investors should also note that MCD has a PEG ratio of 2.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.95.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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McDonald's (MCD) Registers a Bigger Fall Than the Market: Important Facts to Note
McDonald's (MCD - Free Report) ended the recent trading session at $278.25, demonstrating a -1.4% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the world's biggest hamburger chain had lost 0.01% over the past month, lagging the Retail-Wholesale sector's gain of 0.18% and the S&P 500's gain of 1.64%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company is expected to report EPS of $3.34, up 4.7% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $7.15 billion, showing a 4.53% escalation compared to the year-ago quarter.
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.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. McDonald's is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 21.83. This signifies a premium in comparison to the average Forward P/E of 20.29 for its industry.
Investors should also note that MCD has a PEG ratio of 2.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.95.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.