We are in the heart of earnings season at this point and a number of earnings reports are coming out each day. This coming Tuesday we will get earnings results from four companies that are members of the Dow 30—McDonalds (NYSE: MCD), Procter & Gamble (NYSE: PG), Travelers Companies (NYSE: TRV), and United Technologies (NYSE: UTX).
Rather than breaking down each stock one by one, I thought tables would make it easier to compare how the companies are expected to do for this quarter and how they each stack up with their Tickeron Fundamental Ratings. I took the liberty of highlighting particular stats that are positive (green highlight) and ones that are a concern. We see that Travelers is expected to see an earnings decline for this quarter while the other three are expected to report earnings growth.
United Technologies has the best valuation rating of the bunch with Travelers just behind it, McDonalds and Procter & Gamble both have Profit vs. Risk ratings that are in the top quartile, while Procter & Gamble has the only P/E growth rating that is in the top quartile. In fact P&G’s P/E growth rating is in the 95th percentile.
In addition to looking at the ratings from Tickeron, I also looked at some of the ratings from Investor’s Business Daily. We see that P&G and United Technologies have Composite Ratings in the 80th percentile, while all four have EPS ratings in the 60 to 80 range. On the Relative Price Strength Rating, Travelers lags the other three. The SMR ratings (Sales, Profit Margin, and ROE) show that United Technologies is a grade above P&G while Travelers has been average.
Sentiment on the four shows that McDonalds buy percentage is average at 74.2% and United Technologies’ buy percentage is above average at 78.9%. Procter & Gamble’s buy percentage is below average at 52.2% and Travelers’ buy percentage is well below average at only 13%.
None of the four have a very high short interest ratio, but Procter & Gamble’s is slightly above average while McDonalds and United Technologies both have ratios that are slightly below average.
Looking at the weekly charts of the four stocks, McDonalds and Travelers both show weekly stochastic readings that are approaching oversold territory. Procter & Gamble and United Technologies both have stochastics that just below overbought levels. Out of the four charts, Procter & Gamble’s was the most impressive.
The stock has been trending higher within a trend channel for the last 18 months and the slope of the channel is incredibly steep. The stock has seen a little selling in the last three weeks and that was enough to bring the stock down to the lower rail of the channel.
Taking all of the information above in to account—the Tickeron ratings, the IBD ratings, the sentiment, and the charts—I like Procter & Gamble the best of the four. It has a good Profit vs. Risk rating and the best P/E Growth rating from Tickeron. It has the best composite rating from IBD and the EPS rating and SMR rating are solid as well. The sentiment toward the stock shows some signs of pessimism with a low buy percentage and an above average short interest ratio. All of those things suggest to me that Procter & Gamble could continue the impressive rally.
The 10-day moving average for MCD crossed bullishly above the 50-day moving average on February 10, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on January 27, 2025. You may want to consider a long position or call options on MCD as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MCD just turned positive on January 24, 2025. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
MCD moved above its 50-day moving average on February 06, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MCD broke above its upper Bollinger Band on February 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MCD entered a downward trend on January 28, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.241). P/E Ratio (27.078) is within average values for comparable stocks, (57.419). MCD's Projected Growth (PEG Ratio) (2.962) is slightly higher than the industry average of (1.872). Dividend Yield (0.022) settles around the average of (0.040) among similar stocks. P/S Ratio (8.591) is also within normal values, averaging (8.661).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MCD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of food restaurant chain
Industry Restaurants