McDonald's (MCD) Stock Moves -0.28%: What You Should Know

In the latest trading session, McDonald's (MCD) closed at $312.69, showing a small decline of -0.28% from the previous day's close. This decrease is in contrast to the S&P 500, which experienced a loss of 0.33%. The Dow Jones Industrial Average slipped by 0.37%, while the tech-focused Nasdaq Composite fell by 0.53% over the same period.

Despite this minor dip, McDonald's stock has shown positive momentum over the last month, gaining 3.06%. This performance stands out compared to the Retail-Wholesale sector, which has declined by 6.29%, and the S&P 500, which is down by 4.03%.

Investors and analysts are now looking forward to the upcoming earnings report from McDonald's. The expected earnings per share (EPS) is forecasted at $2.68, which indicates a slight decrease of 0.74% from the same quarter last year. Additionally, the Zacks Consensus Estimate anticipates net sales of $6.13 billion, representing a minor drop of 0.58% compared to the previous year.

For the complete fiscal year, projections from Zacks suggest an EPS of $12.25 and total revenue of $26.4 billion. These figures reflect an increase of 4.52% in earnings and 1.87% in revenue from the past year.

Investors are also advised to observe any recent changes in analyst estimates for McDonald's, as these revisions can provide insight into the company's near-term business trends. Positive changes in estimates are generally interpreted as favorable indicators for the company’s outlook.

Research indicates a correlation between estimate changes and subsequent stock performance. The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has demonstrated a strong track record of outperforming the market, with stocks rated #1 yielding an average annual return of 25% since 1988. In the last 30 days, the consensus EPS estimate for McDonald's has increased by 0.11%, and the stock currently holds a Zacks Rank of #3 (Hold).

Examining McDonald's valuation metrics, the company has a Forward P/E ratio of 25.59, which is higher than the average Forward P/E ratio of 23.09 for its sector.

Moreover, McDonald's PEG ratio stands at 3.21. The PEG ratio differs from the traditional P/E ratio by accounting for anticipated earnings growth. The Retail-Restaurant industry's average PEG ratio was observed to be 2.2 at market close yesterday.

This sector is categorized under the Retail-Wholesale classification and currently holds a Zacks Industry Rank of 165, which indicates it is placed within the lower 35% of over 250 industries, as ranked by the average Zacks Rank of companies.

Being part of the top-rated industries can significantly influence stock returns, where the upper half tends to outperform the lower half by nearly 2 to 1. Investors interested in tracking McDonald's performance and related metrics should stay updated on Zacks.com in the upcoming trading sessions.

Stock, Performance, Earnings