McDonald's (MCD) Stock Moves -1.69%: What You Should Know

In the latest trading session, McDonald's (MCD) closed at $251.08, marking a -1.69% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.71%. At the same time, the Dow lost 1.7%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the world's biggest hamburger chain had lost 1.97% in the past month. In that same time, the Retail-Wholesale sector lost 7.43%, while the S&P 500 lost 8.68%.

Investors will be hoping for strength from McDonald's as it approaches its next earnings release. The company is expected to report EPS of $2.59, down 6.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.77 billion, down 6.98% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.83 per share and revenue of $22.76 billion. These totals would mark changes of +5.93% and -1.99%, respectively, from last year.

Any recent changes to analyst estimates for McDonald's should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. McDonald's currently has a Zacks Rank of #3 (Hold).

Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 25.98. This represents a premium compared to its industry's average Forward P/E of 19.68.

We can also see that MCD currently has a PEG ratio of 3.11. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.