In the latest trading session, McDonald's (MCD - Free Report) closed at $182.71, marking a +1.29% move from the previous day. This move outpaced the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.64%.
Heading into today, shares of the world's biggest hamburger chain had gained 7.52% over the past month, outpacing the Retail-Wholesale sector's loss of 3.45% and the S&P 500's loss of 4.95% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. On that day, MCD is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.16 billion, down 3.36% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $7.75 per share and revenue of $21.03 billion. These results would represent year-over-year changes of +16.37% and -7.85%, respectively.
Investors should also note any recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team 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 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. Within the past 30 days, our consensus EPS projection has moved 1.3% higher. MCD is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 23.28 right now. For comparison, its industry has an average Forward P/E of 23.78, which means MCD is trading at a discount to the group.
Meanwhile, MCD's PEG ratio is currently 2.65. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 108, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MCD in the coming trading sessions, be sure to utilize Zacks.com.