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Here's Why McDonald's (MCD) Fell More Than Broader Market
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In the latest trading session, McDonald's (MCD - Free Report) closed at $314.89, marking a -0.53% move from the previous day. This change lagged the S&P 500's 0.18% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.27%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 6.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46% in that time.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2024. The company's earnings per share (EPS) are projected to be $3.17, reflecting a 0.63% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.78 billion, reflecting a 1.29% rise from the equivalent quarter last year.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.72 per share and revenue of $26.04 billion. These results would represent year-over-year changes of -1.84% and +2.15%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 27.01. Its industry sports an average Forward P/E of 23.98, so one might conclude that McDonald's is trading at a premium comparatively.
It's also important to note that MCD currently trades at a PEG ratio of 4.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Here's Why McDonald's (MCD) Fell More Than Broader Market
In the latest trading session, McDonald's (MCD - Free Report) closed at $314.89, marking a -0.53% move from the previous day. This change lagged the S&P 500's 0.18% loss on the day. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq gained 0.27%.
Prior to today's trading, shares of the world's biggest hamburger chain had gained 6.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46% in that time.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 29, 2024. The company's earnings per share (EPS) are projected to be $3.17, reflecting a 0.63% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.78 billion, reflecting a 1.29% rise from the equivalent quarter last year.
MCD's full-year Zacks Consensus Estimates are calling for earnings of $11.72 per share and revenue of $26.04 billion. These results would represent year-over-year changes of -1.84% and +2.15%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. McDonald's is currently a Zacks Rank #3 (Hold).
Looking at its valuation, McDonald's is holding a Forward P/E ratio of 27.01. Its industry sports an average Forward P/E of 23.98, so one might conclude that McDonald's is trading at a premium comparatively.
It's also important to note that MCD currently trades at a PEG ratio of 4.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.