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Is McDonald's (MCD) Stock Outpacing Its Retail-Wholesale Peers This Year?

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Investors focused on the Retail-Wholesale space have likely heard of McDonald's (MCD - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of MCD and the rest of the Retail-Wholesale group's stocks.

McDonald's is a member of our Retail-Wholesale group, which includes 227 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. MCD is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MCD's full-year earnings has moved 1.38% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that MCD has returned about 6.49% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have gained about 2.17% on average. This means that McDonald's is outperforming the sector as a whole this year.

Looking more specifically, MCD belongs to the Retail - Restaurants industry, a group that includes 50 individual stocks and currently sits at #168 in the Zacks Industry Rank. On average, stocks in this group have gained 9.52% this year, meaning that MCD is slightly underperforming its industry in terms of year-to-date returns.

Investors in the Retail-Wholesale sector will want to keep a close eye on MCD as it attempts to continue its solid performance.


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