McDonald’s Corporation Stock Forecast:
The average analyst target price for McDonald’s Corporation stock over the next 12 months is USD 282.33, and the average analyst rating is Buy. Stock Target Advisor‘s analysis is Slightly Bullish, based on 9 positive signals and 5 negative signals. McDonald’s Corporation’s current stock price is USD 282.89, which has increased by +1.17% over the past week, +8.13% over the past month, and +12.50% over the last year.
Analysts Coverage Change:
Northcoast Research Upgrades McDonald’s Corp to a “Buy” rating with a price target of $321 on the company’s stock.
Positive Fundamentals:
- High market capitalization, among the largest entities in its sector and in the top quartile, indicating stability.
- Superior risk-adjusted returns compared to its sector peers for a hold period of at least 12 months and in the top quartile.
- Low volatility, with stable and consistent annual returns compared to its sector peers for a hold period of at least 12 months and in the top quartile.
- Superior total returns, outperforming its sector peers on average annual total returns basis for the past 5 years for a hold period of at least 12 months and in the top quartile.
- High dividend returns, outperforming its sector peers on average annual dividend returns basis for the past 5 years for a hold period of at least 12 months and in the top quartile.
- Superior capital utilization, delivering better return on invested capital than its peers in the most recent 4 quarters, placing it in the top quartile.
- Superior return on assets, delivering better return on assets than its peers in the most recent 4 quarters, placing it in the top quartile.
- Positive total cash flow and positive total free cash flow in the most recent four quarters.
Negative Fundamentals:
- Stock is overpriced compared to earnings
- Stock is overpriced on cashflow basis
- Stock is overpriced on free cash flow basis
- Low revenue growth in previous 5 years compared to sector
- Low dividend growth in previous 5 years compared to sector
FA Score (Fundamental Analysis):
The fundamental analysis of McDonald’s Corp. is “Slightly Bullish” with a FA score of 6.4 out of 10, where 0 is very bearish and 10 is very bullish.
