We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why McDonald's (MCD) Fell More Than Broader Market
Read MoreHide Full Article
In the latest close session, McDonald's (MCD - Free Report) was down 4.81% at $238.32. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 6.62% lagged the Retail-Wholesale sector's loss of 3.45% and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company is forecasted to report an EPS of $3.39, showcasing a 5.28% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.29 billion, indicating a 2.98% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.88 per share and a revenue of $28.18 billion, signifying shifts of +5.57% and +4.81%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.03% lower. At present, McDonald's boasts a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 19.44. This valuation marks a discount compared to its industry average Forward P/E of 21.17.
It's also important to note that MCD currently trades at a PEG ratio of 2.71. 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. The average PEG ratio for the Retail - Restaurants industry stood at 1.73 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 35% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why McDonald's (MCD) Fell More Than Broader Market
In the latest close session, McDonald's (MCD - Free Report) was down 4.81% at $238.32. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 1.13%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 6.62% lagged the Retail-Wholesale sector's loss of 3.45% and the S&P 500's gain of 1.26%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company is forecasted to report an EPS of $3.39, showcasing a 5.28% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.29 billion, indicating a 2.98% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.88 per share and a revenue of $28.18 billion, signifying shifts of +5.57% and +4.81%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.03% lower. At present, McDonald's boasts a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is currently trading at a Forward P/E ratio of 19.44. This valuation marks a discount compared to its industry average Forward P/E of 21.17.
It's also important to note that MCD currently trades at a PEG ratio of 2.71. 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. The average PEG ratio for the Retail - Restaurants industry stood at 1.73 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 35% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.