Each evaluation criterion defines ‘buy’, ‘hold’ or ‘sell’. The overall evaluation results from the individual findings of this analysis.
1. Fundamental: The lower the price-earnings ratio (P/E) of a stock, the cheaper it appears at first glance. Growth stocks tend to have higher P/E ratios. With a value of 23.94, McDonald’s is below the industry average. The exact gap is currently 68 percent with an average price-to-earnings ratio for the “hotels, restaurants and entertainment” sector of 74.84. Due to the relatively low price-earnings ratio, the stock can be described as “cheap” and therefore receives a “buy” on the basis of the underlying criteria.
2. Sentiment and Noise: Strong positive or negative fluctuations in online communication can be accurately and early identified by our analysis. However, the mood for McDonald’s has not changed in recent weeks. We give the stock a “Hold” rating for this. Discussion power measures the attention of market participants in social media. For McDonald’s, our programs have not measured any exceptional activity over the past four weeks. McDonald’s has a “Hold” rating. Overall, the stake is rated ‘booking’ at this level.
Should investors sell immediately? Or is it worth starting at McDonald’s?
3. Dividend: With a dividend of 2.47%, McDonald’s ranks just below the industry average for hotels, restaurants and entertainment (3.1%) in terms of payments, with a difference of 0.63 percentage points. The classification “Hold” can currently be derived from this classification.
4. Investors: Discussions about McDonald’s on social media platforms give a clear indication of the valuations and moods surrounding the stock. Currently, negative opinions have been accumulated in comments and opinions over the past two weeks. Additionally, mostly negative value-related topics have been addressed in the past few days. Our editorial team came to the conclusion that the company should be classified as a “sell”. After all, four trading signals can also be identified at this level in the past period. The picture gives 0 buy and 4 sell signals. This result eventually leads to it being classified as a “sell” share. In short, the editors see McDonald’s stock appropriately classified as “sell” based on investor sentiment.
5. Industry comparison stock price: McDonald’s has had a performance of 10.38 percent in the last twelve months. Similar stocks in the hotel, restaurant, and entertainment industry rose 23.57% on average, dragging the industry down -13.19% for McDonald’s. The Consumer Appreciation segment generated an average return of 40.93% over last year. McDonald’s was 30.56 percent below that average. Poor performance in industry and sector comparisons leads to a “sell” rating in this category.
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6. Relative Strength Index: Based on the Relative Strength Index, McDonald’s stock is a holding stock. The indicator measures the rise and fall of different periods (seven-day RSI7, 25-day RSI25) and assigns them a number between 0 and 100. McDonald’s stock has an RSI7 reading of 92.17, which leads to a sell recommendation, and an RSI25 reading of 56.72, which leads to Hold rating for this period. This general arrangement results in a “sell” at the RSI level.
7. Technical Analysis: McDonald’s 200-Day Moving Average (GD200) is currently at $248.2. This gives the stock a “Hold” rating, as the share price itself closed at $241.63, building a gap of -2.65 percent. The percentage varies compared to the moving average of the last 50 days. GD50 is currently trading at $244.57. That, in turn, corresponds to the current -1.2 percent difference for McDonald’s shares and thus a “suspension” signal. So the total score based on the two periods is ‘suspension’.
8. Analyst rating: In the past 12 months, a total of 27 analyst ratings have been given to McDonald’s shares. Of these, there were 23 “buy”, 4 “hold” and 0 “sell”. In short, McDonald’s stock has a “buy” rating. Eligible analyzes are also available for the past month. There were 2 buy, 0 hold and 0 sell. From a short-term perspective, this fits in with the overall rating of “buy” for us. Analysts’ valuations resulted in an average price target of $276.52. The stock has a bullish potential of 14.44 percent based on its last closing price ($241.63). This results in a ‘buy’ recommendation. The bottom line is that McDonald’s gets a “buy” rating for this point of the analysis.
This gives McDonald’s stock a “hold” rating (when all eight factors evaluated) are considered.
Should McDonald’s Investors Sell Immediately? Or is it worth starting?
How will McDonald’s develop now? Is the entry worthwhile, or should investors sell instead? Find out the answers to these questions and why you need to act now on McDonald’s current analysis.