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Here's Why McDonald's (MCD) Gained But Lagged the Market Today September 19, 2024
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The most recent trading session ended with McDonald's (MCD - Free Report) standing at $293.85, reflecting a +0.62% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.7% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 2.51%.
The world's biggest hamburger chain's stock has climbed by 0.8% in the past month, falling short of the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. On that day, McDonald's is projected to report earnings of $3.15 per share, which would represent a year-over-year decline of 1.25%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.76 billion, indicating a 1.04% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.69 per share and a revenue of $26.04 billion, representing changes of -2.09% and +2.15%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 0.17% upward. McDonald's presently features a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 24.99. For comparison, its industry has an average Forward P/E of 20.58, which means McDonald's is trading at a premium to the group.
We can also see that MCD currently has a PEG ratio of 3.9. 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. The Retail - Restaurants industry had an average PEG ratio of 2.18 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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The most recent trading session ended with McDonald's (MCD - Free Report) standing at $293.85, reflecting a +0.62% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.7% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 2.51%.
The world's biggest hamburger chain's stock has climbed by 0.8% in the past month, falling short of the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. On that day, McDonald's is projected to report earnings of $3.15 per share, which would represent a year-over-year decline of 1.25%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.76 billion, indicating a 1.04% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.69 per share and a revenue of $26.04 billion, representing changes of -2.09% and +2.15%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 shifted 0.17% upward. McDonald's presently features a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 24.99. For comparison, its industry has an average Forward P/E of 20.58, which means McDonald's is trading at a premium to the group.
We can also see that MCD currently has a PEG ratio of 3.9. 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. The Retail - Restaurants industry had an average PEG ratio of 2.18 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »