In the latest trading session, McDonald's (MCD) closed at $211.60, marking a -1.23% move from the previous day. This change lagged the S&P 500's 0.04% gain on the day. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.28%.
Heading into today, shares of the world's biggest hamburger chain had gained 1.09% over the past month, outpacing the Retail-Wholesale sector's loss of 0.75% and lagging the S&P 500's gain of 3.84% in that time.
MCD will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2021. In that report, analysts expect MCD to post earnings of $1.76 per share. This would mark a year-over-year decline of 10.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.32 billion, down 0.52% from the year-ago period.
Any recent changes to analyst estimates for MCD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.08% higher. MCD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that MCD has a Forward P/E ratio of 25.93 right now. This represents a discount compared to its industry's average Forward P/E of 30.59.
Meanwhile, MCD's PEG ratio is currently 3.2. 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. MCD's industry had an average PEG ratio of 2.71 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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McDonalds Corporation (MCD) : Free Stock Analysis Report
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