Yahoo Finance McDonald's (MCD) Increases Despite Market Slip: Here's What You Need to Know
In the latest market close, McDonald's (MCD) reached $260.38, with a +0.38% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.31%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq lost 1.09%.
Shares of the world's biggest hamburger chain have appreciated by 0.5% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.85% and the S&P 500's gain of 2.73%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company is forecasted to report an EPS of $3.10, showcasing a 2.21% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $6.68 billion, showing a 2.85% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.19 per share and revenue of $26.62 billion, which would represent changes of +2.09% and +4.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. At present, McDonald's boasts a Zacks Rank of #3 (Hold).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 21.28. This indicates a premium in contrast to its industry's Forward P/E of 19.19.
It is also worth noting that MCD currently has a PEG ratio of 2.92. 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 1.74 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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McDonald's Corporation (MCD) : Free Stock Analysis Report
