McDonald's (MCD) Stock Moves -0.49%: What You Should Know
McDonald's (MCD) closed at $267.19 in the latest trading session, marking a -0.49% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.94%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.39%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.31% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.08% and lagged the S&P 500's gain of 5.72% in that time.
McDonald's will be looking to display strength as it nears its next earnings release. On that day, McDonald's is projected to report earnings of $2.32 per share, which would represent year-over-year growth of 36.47%. Our most recent consensus estimate is calling for quarterly revenue of $6.03 billion, up 13.5% from the year-ago period.
It is also important to note the recent changes to analyst estimates for McDonald's. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% higher. McDonald's is currently a Zacks Rank #2 (Buy).
Digging into valuation, McDonald's currently has a Forward P/E ratio of 26.43. Its industry sports an average Forward P/E of 21.83, so we one might conclude that McDonald's is trading at a premium comparatively.
Investors should also note that MCD has a PEG ratio of 2.31 right now. 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. 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 industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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McDonald's Corporation (MCD) : Free Stock Analysis Report
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