U.S. markets closed
  • S&P 500

    4,594.62
    -106.84 (-2.27%)
     
  • Dow 30

    34,899.34
    -905.04 (-2.53%)
     
  • Nasdaq

    15,491.66
    -353.57 (-2.23%)
     
  • Russell 2000

    2,245.94
    -85.52 (-3.67%)
     
  • Crude Oil

    68.15
    -10.24 (-13.06%)
     
  • Gold

    1,788.10
    +1.20 (+0.07%)
     
  • Silver

    23.14
    -0.40 (-1.70%)
     
  • EUR/USD

    1.1322
    +0.0110 (+0.99%)
     
  • 10-Yr Bond

    1.4820
    -0.1630 (-9.91%)
     
  • GBP/USD

    1.3342
    +0.0022 (+0.16%)
     
  • USD/JPY

    113.2600
    -2.0790 (-1.80%)
     
  • BTC-USD

    54,914.85
    +550.92 (+1.01%)
     
  • CMC Crypto 200

    1,365.60
    -89.82 (-6.17%)
     
  • FTSE 100

    7,044.03
    -266.34 (-3.64%)
     
  • Nikkei 225

    28,751.62
    -747.66 (-2.53%)
     

McDonald's (MCD) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, McDonald's (MCD) closed at $248.32, marking a +0.49% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day.

Heading into today, shares of the world's biggest hamburger chain had gained 3.55% over the past month, outpacing the Retail-Wholesale sector's loss of 6.88% and the S&P 500's loss of 3.68% in that time.

Wall Street will be looking for positivity from MCD as it approaches its next earnings report date. This is expected to be October 27, 2021. On that day, MCD is projected to report earnings of $2.46 per share, which would represent year-over-year growth of 10.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.02 billion, up 11.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.03 per share and revenue of $22.95 billion, which would represent changes of +49.26% and +19.5%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MCD. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MCD is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 27.38 right now. This represents a premium compared to its industry's average Forward P/E of 21.51.

We can also see that MCD currently has a PEG ratio of 2.34. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.42 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 105, which puts 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
McDonald's Corporation (MCD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.