Yahoo Finance McDonald's (MCD) Stock Slides as Market Rises: Facts to Know Before You Trade
McDonald's (MCD) ended the recent trading session at $253.51, demonstrating a -0.03% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.95%.
The the stock of world's biggest hamburger chain has fallen by 6.9% in the past month, lagging the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 3.71%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.10, signifying a 2.21% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.68 billion, indicating a 2.85% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.17 per share and revenue of $26.62 billion, indicating changes of +1.93% and +4.41%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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, there's been a 0.04% fall in the Zacks Consensus EPS estimate. At present, McDonald's boasts a Zacks Rank of #3 (Hold).
In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 20.84. This signifies a premium in comparison to the average Forward P/E of 19.07 for its industry.
It is also worth noting that MCD currently has a PEG ratio of 2.86. 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 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 164, putting it in the bottom 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
