McDonald's Corporation's (NYSE:MCD) Price Is Out Of Tune With Earnings
Nov 28
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U.S. Consumer Discretionary Sector Analysis
UpdatedNov 29, 2024
DataAggregated Company Financials
Companies778
- 7D1.3%
- 3M16.6%
- 1Y26.3%
- YTD22.3%
Amazon.com is up 1.4%, leading the way for the Consumer Discretionary industry, which has gained 1.9%. This takes the industry's 12 month performance to a gain of 28%. Earnings are forecast to grow by 16% annually.
Sector Valuation and Performance
Has the U.S. Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 29 Nov 2024 | US$6.8t | US$3.3t | US$199.8b | 19x | 34.2x | 2x |
| Sun, 27 Oct 2024 | US$5.9t | US$3.2t | US$179.8b | 17.9x | 32.9x | 1.9x |
| Tue, 24 Sep 2024 | US$5.8t | US$3.2t | US$177.7b | 17.8x | 32.5x | 1.8x |
| Thu, 22 Aug 2024 | US$5.5t | US$3.2t | US$173.0b | 17.8x | 31.9x | 1.7x |
| Sat, 20 Jul 2024 | US$5.6t | US$3.1t | US$167.3b | 17.7x | 33.7x | 1.8x |
| Mon, 17 Jun 2024 | US$5.4t | US$3.1t | US$167.8b | 17.7x | 32x | 1.7x |
| Wed, 15 May 2024 | US$5.4t | US$3.1t | US$166.9b | 18.3x | 32.6x | 1.8x |
| Fri, 12 Apr 2024 | US$5.3t | US$3.1t | US$160.5b | 17.8x | 33.3x | 1.7x |
| Sun, 10 Mar 2024 | US$5.3t | US$3.1t | US$155.6b | 16.7x | 33.9x | 1.7x |
| Tue, 06 Feb 2024 | US$5.1t | US$3.1t | US$159.9b | 17x | 32x | 1.7x |
| Thu, 04 Jan 2024 | US$5.1t | US$3.1t | US$141.5b | 17.6x | 36.3x | 1.7x |
| Sat, 02 Dec 2023 | US$5.0t | US$3.1t | US$139.5b | 16.1x | 36x | 1.6x |
| Mon, 30 Oct 2023 | US$4.4t | US$3.0t | US$121.6b | 14.3x | 36.5x | 1.5x |
| Wed, 27 Sep 2023 | US$4.6t | US$3.0t | US$112.2b | 14.8x | 41.3x | 1.6x |
| Fri, 25 Aug 2023 | US$4.7t | US$3.0t | US$111.9b | 15.4x | 42.4x | 1.6x |
| Sun, 23 Jul 2023 | US$5.0t | US$2.9t | US$100.4b | 15.5x | 49.6x | 1.7x |
| Tue, 20 Jun 2023 | US$4.8t | US$2.9t | US$98.9b | 14.9x | 49x | 1.7x |
| Thu, 18 May 2023 | US$4.3t | US$2.9t | US$94.4b | 14.2x | 46x | 1.5x |
| Sat, 15 Apr 2023 | US$4.4t | US$2.9t | US$81.6b | 14.1x | 53.4x | 1.5x |
| Mon, 13 Mar 2023 | US$4.3t | US$3.1t | US$87.0b | 13.8x | 49.1x | 1.4x |
| Wed, 08 Feb 2023 | US$4.8t | US$3.1t | US$86.6b | 13.6x | 55.8x | 1.6x |
| Fri, 06 Jan 2023 | US$4.1t | US$3.0t | US$108.5b | 11.9x | 37.7x | 1.3x |
| Sun, 04 Dec 2022 | US$4.5t | US$3.0t | US$108.2b | 12.2x | 41.9x | 1.5x |
| Tue, 01 Nov 2022 | US$4.4t | US$3.0t | US$111.6b | 11.1x | 39x | 1.4x |
| Thu, 29 Sep 2022 | US$4.7t | US$3.0t | US$111.0b | 10.8x | 42.6x | 1.6x |
| Sat, 27 Aug 2022 | US$5.1t | US$3.0t | US$110.3b | 11.6x | 46.4x | 1.7x |
| Mon, 25 Jul 2022 | US$4.9t | US$2.9t | US$121.4b | 11.3x | 40.8x | 1.7x |
| Wed, 22 Jun 2022 | US$4.6t | US$2.9t | US$120.2b | 10.7x | 37.9x | 1.6x |
| Fri, 20 May 2022 | US$4.5t | US$2.9t | US$119.0b | 11.2x | 37.8x | 1.6x |
| Sun, 17 Apr 2022 | US$5.8t | US$2.9t | US$135.2b | 12.3x | 42.9x | 2x |
| Tue, 15 Mar 2022 | US$5.2t | US$2.8t | US$129.7b | 12.9x | 39.8x | 1.8x |
| Thu, 10 Feb 2022 | US$6.2t | US$2.8t | US$141.6b | 14.7x | 44x | 2.2x |
| Sat, 08 Jan 2022 | US$6.5t | US$2.7t | US$116.9b | 15.7x | 55.5x | 2.4x |
| Mon, 06 Dec 2021 | US$6.6t | US$2.7t | US$117.5b | 15.4x | 56x | 2.4x |
Price to Earnings Ratio
56x
Current Industry PE
- Investors are pessimistic on the American Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 34.4x which is lower than its 3-year average PE of 41.2x.
- The 3-year average PS ratio of 1.7x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Consumer Discretionary industry have grown 19% per year over the last three years.
- Revenues for these companies have grown 7.0% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Discretionary sector?
| US Market | 0.49% | |
| Consumer Discretionary | 1.26% | |
| General Merchandise and Department Stores | 3.97% | |
| Consumer Durables | 2.73% | |
| Specialty Stores | 2.41% | |
| Luxury | 1.89% | |
| Retail Distributors | 1.85% | |
| Consumer Services | 1.71% | |
| Hospitality | 0.58% | |
| Leisure | 0.52% | |
| Online Retail and Ecommerce | 0% | |
| Auto Components | -0.15% | |
| Auto | -4.72% | |
Industry PE
- Investors are most optimistic about the Leisure industry which is trading above its 3-year average PE ratio of 18.1x.
- Analysts are expecting annual earnings growth of 28.2%, which is higher than its past year's earnings decline of 42.1% per year.
- Investors are most pessimistic about the Consumer Durables industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 10.8x.
Forecasted Growth
- Analysts are most optimistic on the Leisure industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings decline of 42% per year.
- In contrast, the Specialty Stores industry is expected to see its earnings grow by 8.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| AMZN Amazon.com | US$205.74 | 4.4% +US$90.6b | 39.9% | PE43.4x | |
| BABA Alibaba Group Holding | US$86.59 | 4.2% +US$7.9b | 17.0% | PE16.6x | |
| HD Home Depot | US$427.19 | 1.7% +US$7.1b | 33.7% | PE29x | |
| TJX TJX Companies | US$126.36 | 4.0% +US$5.5b | 41.9% | PE29.3x | |
| LOW Lowe's Companies | US$273.19 | 3.2% +US$4.7b | 34.0% | PE22.6x |
