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McDonald's (MCD) Increases Despite Market Slip: Here's What You Need to Know
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In the latest trading session, McDonald's (MCD - Free Report) closed at $238.31, marking a +1.06% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The world's biggest hamburger chain's stock has dropped by 6.71% in the past month, falling short of the Retail-Wholesale sector's gain of 0.5% and the S&P 500's gain of 2.06%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is forecasted to report an EPS of $3.37, showcasing a 4.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.28 billion, up 2.88% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.84 per share and revenue of $28.17 billion. These totals would mark changes of +5.25% and +4.76%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. McDonald's presently features a Zacks Rank of #4 (Sell).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 18.36. This denotes a discount relative to the industry average Forward P/E of 19.79.
One should further note that MCD currently holds a PEG ratio of 2.64. 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. MCD's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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) Increases Despite Market Slip: Here's What You Need to Know
In the latest trading session, McDonald's (MCD - Free Report) closed at $238.31, marking a +1.06% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The world's biggest hamburger chain's stock has dropped by 6.71% in the past month, falling short of the Retail-Wholesale sector's gain of 0.5% and the S&P 500's gain of 2.06%.
The upcoming earnings release of McDonald's will be of great interest to investors. The company is forecasted to report an EPS of $3.37, showcasing a 4.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.28 billion, up 2.88% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.84 per share and revenue of $28.17 billion. These totals would mark changes of +5.25% and +4.76%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. McDonald's presently features a Zacks Rank of #4 (Sell).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 18.36. This denotes a discount relative to the industry average Forward P/E of 19.79.
One should further note that MCD currently holds a PEG ratio of 2.64. 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. MCD's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% 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.