McDonald’s (MCD) closed at $ 242.65 in the last trading session, marking a movement of -0.76% from the previous day. This move fell behind the S&P 500’s 0.3% daily gain.
As of today, shares of the world’s largest burger chain had gained 1.41% over the past month. At the same time, the Retail-Wholesale sector lost 4.97%, while the S&P 500 lost 2.37%.
MCD will look to show some strength as it approaches its next earnings release, which is scheduled for October 27, 2021. In this report, analysts expect MCD to post earnings of $ 2.46 per share . That would mark year-over-year growth of 10.81%. Our most recent consensus estimate projects quarterly revenue of $ 6.02 billion, up 11.18% from the previous year.
For the full year, our Zacks consensus estimates project earnings of $ 9.03 per share and revenue of $ 22.95 billion, which would represent changes of + 49.26% and + 19.5%, respectively, over the previous year.
Investors should also note any recent changes in analyst estimates for MCD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable track record of externally verified success, with No.1 stocks generating an average annual return of + 25% since 1988. Over the past month, Zacks Consensus’s EPS estimate has remained stagnant. MCD currently sports a Zacks rank of # 2 (Buy).
Digging into the valuation, MCD currently has a forward P / E ratio of 27.09. This valuation marks a premium over its sector’s average forward P / E of 21.74.
Also, we have to mention that MCD has a PEG ratio of 2.31. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Retail – Restaurant stocks have, on average, a PEG ratio of 2.31 based on yesterday’s closing prices.
The Retail Trade – Restaurants industry is part of the Retail-Wholesale industry. This industry currently has a Zacks Industry Rank of 85, which places it in the top 34% of all 250+ industries.
The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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