8/6/2019 ValuEngine Rates McDonalds (MCD,$MCD) a BUY as Earnings Season Rolls On

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July 21, 2011

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You Want Fries with those Earnings?ValuEngine Rates McDonalds (MCD,$MCD) a BUY as Earnings SeasonRolls On

So far this week we have provided data on Apple, United Technologies, and US

Airways ahead of the earnings reports. Today we finish off our earnings week coverage with our data on fast food giant McDonalds (MCD,$MCD.) Analysts arelooking for revenues of $6.63 Billion. The company is expected to post EPS of $1.28.

McDonald's Corporation develops, operates, franchises and services aworldwide system of restaurants that prepare, assemble, package and sell a limited

menu of value-priced foods. The company operates primarily in the quick-servicehamburger restaurant business. All restaurants are operated by the company or,under the terms of franchise arrangements, by franchisees who are independent third

parties, or by affiliates operating under joint-venture agreements between thecompany and local business people.

ValuEngine has issued a BUY recommendation for MCDONALDS CORP on Jul.

21, 2011. Based on the information we have gathered and our resulting research, wefeel that MCDONALDS CORP has the probability to OUTPERFORM average marketperformance for the next year. The company exhibits ATTRACTIVE company size, risk 

and volatility.

Based on available data as of Jul. 21, 2011, we believe that MCD should betrading at $76.31. This makes MCD 13.05% overvalued. Fair Value indicates what webelieve the stock should be trading at today if the stock market were perfectlyefficient and everything traded at its true worth. For MCD, we base this on actual

earnings per share (EPS) for the previous four quarters of $4.87, forecasted EPS for thenext four quarters of $5.35, and correlations to the 30- year Treasury bond yield of4.26%.

8/6/2019 ValuEngine Rates McDonalds (MCD,$MCD) a BUY as Earnings Season Rolls On

http://slidepdf.com/reader/full/valuengine-rates-mcdonalds-mcdmcd-a-buy-as-earnings-season-rolls-on 2/2

Our Chief Market Strategist Richard Suttmeier discussed the technicals for thestock earlier this week in his column on Forbes.com. Suttmeier's analysis showed thatMcDonald's "has declining Momentum on its daily chart with an all time high of $86.46

set on July 14th. My annual value level is $64.93 with a semiannual pivot at $84.47 andannual risky level at $88.81."

 

MARKET OVERVIEW

Summary of VE Stock Universe

Stocks Undervalued 53.70%

Stocks Overvalued 46.30%

Stocks Undervalued by 20% 22.41%

Stocks Overvalued by 20% 17.88%

SECTOR OVERVIEWSector Change MTD YTD Valuation Last 12-

MReturnP/E

Ratio

Aerospace 0.20% 0.71% 17.60% 0.57% overvalued 32.25% 21.91

Auto-Tires-Trucks -0.59% -2.07% -6.81% 0.93% overvalued 50.20% 24.57

Basic Materials 0.33% 2.98% -2.73% 2.07% undervalued 64.01% 30.73

Business Services -0.27% -1.60% 6.68% 2.24% overvalued 26.06% 24.46

Computer and Technology -0.21% -1.58% 7.11% 3.11% undervalued 34.94% 42.74

Construction 0.03% 0.19% -10.04% 4.96% undervalued 7.46% 39.42

Consumer Discretionary -0.22% -0.91% 3.17% 0.36% undervalued 29.38% 35.93

Consumer Staples-0.24% -1.10% -2.79% 4.47% overvalued 21.00% 28.32

Finance 0.46% -1.55% 2.03% 0.38% undervalued 15.00% 26.98

Industrial Products 0.23% 0.56% 4.76% 1.31% undervalued 37.70% 29.95

Medical -0.26% -0.80% 13.19% 2.64% undervalued 29.79% 32.22

Multi-Sector Conglomerates 0.18% -3.33% 0.65% 5.52% overvalued 36.20% 25.97

Oils-Energy 0.28% 1.32% 1.84% 5.61% overvalued 50.11% 58.74

Retail-Wholesale -0.66% 0.23% 8.72% 1.23% overvalued 34.98% 30.93

Transportation -0.44% -2.48% -7.94% 5.47% overvalued 16.87% 29.39

Utilities -0.01% -1.67% 4.39% 5.91% overvalued 22.55% 28.32