McDonald's (MCD) Stock Moves -1.39%: What You Should Know
McDonald's (MCD) closed at $261.63 in the latest trading session, marking a -1.39% move from the prior day. This change was narrower than the S&P 500's 1.85% loss on the day. At the same time, the Dow lost 1.66%, and the tech-heavy Nasdaq lost 10.91%.
Heading into today, shares of the world's biggest hamburger chain had gained 0.96% over the past month, outpacing the Retail-Wholesale sector's loss of 4.96% and the S&P 500's loss of 2.85% in that time.
Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.29, up 0.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.54 billion, down 2.25% from the year-ago period.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $10.51 per share and revenue of $24.27 billion. These results would represent year-over-year changes of +4.06% and +4.69%, respectively.
Investors might also notice recent changes to analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 has moved 0.18% lower. McDonald's currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 25.24 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.98.
Also, we should mention that MCD has a PEG ratio of 3.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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McDonald's Corporation (MCD) : Free Stock Analysis Report
