McDonald's (MCD - Free Report) closed at $211.11 in the latest trading session, marking a -0.38% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.56%. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 1.67%.
Heading into today, shares of the world's biggest hamburger chain had lost 2.46% over the past month, outpacing the Retail-Wholesale sector's loss of 3.42% and lagging the S&P 500's loss of 1.22% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2019. On that day, MCD is projected to report earnings of $2.22 per share, which would represent year-over-year growth of 5.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.49 billion, up 2.32% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $8 per share and revenue of $21.12 billion. These results would represent year-over-year changes of +1.27% and +0.43%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.08% lower. MCD currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 26.49 right now. For comparison, its industry has an average Forward P/E of 22, which means MCD is trading at a premium to the group.
It is also worth noting that MCD currently has a PEG ratio of 3.15. 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 was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.