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McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with McDonald's (MCD - Free Report) standing at $293.75, reflecting a -0.99% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The world's biggest hamburger chain's shares have seen an increase of 3.18% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.37% and outstripping the S&P 500's gain of 1.54%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company's upcoming EPS is projected at $3.14, signifying a 1.57% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.75 billion, indicating a 0.84% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.67 per share and a revenue of $26.01 billion, representing changes of -2.26% and +2.04%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Right now, McDonald's possesses a Zacks Rank of #4 (Sell).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 25.43. This denotes a premium relative to the industry's average Forward P/E of 20.81.
It is also worth noting that MCD currently has a PEG ratio of 3.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 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.
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 (MCD) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with McDonald's (MCD - Free Report) standing at $293.75, reflecting a -0.99% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The world's biggest hamburger chain's shares have seen an increase of 3.18% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.37% and outstripping the S&P 500's gain of 1.54%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company's upcoming EPS is projected at $3.14, signifying a 1.57% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.75 billion, indicating a 0.84% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.67 per share and a revenue of $26.01 billion, representing changes of -2.26% and +2.04%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Right now, McDonald's possesses a Zacks Rank of #4 (Sell).
In the context of valuation, McDonald's is at present trading with a Forward P/E ratio of 25.43. This denotes a premium relative to the industry's average Forward P/E of 20.81.
It is also worth noting that MCD currently has a PEG ratio of 3.97. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.2 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 40% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.