In the latest trading session, McDonald's (MCD - Free Report) closed at $179.50, marking a -0.57% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 2.99% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.24% and the S&P 500's gain of 1.81% in that time.
MCD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.80, up 0.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.95 billion, down 3.65% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $20.98 billion. These results would represent year-over-year changes of +3.2% and -0.24%, respectively.
Investors might also notice recent changes to analyst estimates for MCD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.5% lower. MCD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 22.14 right now. This represents a premium compared to its industry's average Forward P/E of 21.52.
It is also worth noting that MCD currently has a PEG ratio of 2.51. 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. MCD's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.