McDonald's (MCD) Stock Drops Despite Market Gains: Important Facts to Note

McDonald's (MCD) closed the most recent trading day at $305.94, moving -2.11% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, added 0.03%. Prior to today's trading, shares of the world's biggest hamburger chain had gained 3.61% lagged the Retail-Wholesale sector's gain of 5% and outpaced the S&P 500's gain of 2.09%.Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.4, signifying a 5.26% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.07 billion, up 2.81% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.36 per share and revenue of $26.68 billion. These totals would mark changes of +5.46% and +2.94%, respectively, from last year. Investors should also pay attention to any latest changes in analyst estimates for McDonald's. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.19% higher. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold). In terms of valuation, McDonald's is presently being traded at a Forward P/E ratio of 25.29. This indicates a premium in contrast to its industry's Forward P/E of 19.91. It's also important to note that MCD currently trades at a PEG ratio of 3.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.31. The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McDonald's Corporation (MCD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks