McDonald's (MCD) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, McDonald's (MCD) closed at $183.48, marking a -0.06% move from the previous day. This move lagged the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.95%.
Prior to today's trading, shares of the world's biggest hamburger chain had lost 0.23% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 4.97% 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 January 29, 2019. On that day, MCD is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $5.16 billion, down 3.37% from the prior-year quarter.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $7.76 per share and revenue of $21.03 billion. These results would represent year-over-year changes of +16.52% and -7.86%, respectively.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. MCD is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, MCD currently has a Forward P/E ratio of 23.66. For comparison, its industry has an average Forward P/E of 22.95, which means MCD is trading at a premium to the group.
We can also see that MCD currently has a PEG ratio of 2.69. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.83 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 186, which puts it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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McDonald's Corporation (MCD) : Free Stock Analysis Report
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