McDonald's Corp (MCD, $294.58)after its earning report on April 25
On Thursday, April 25, McDonald's Corp (MCD) released its earnings report, showing a decline in the company's stock. Following this release, MCD has been on a downward trend for three consecutive days, with a total decline of 1.17% as of April 26, 2023. This article examines the significance of this bearish sign and the odds of a continued downward trend for the fast-food giant in the coming month.
Three-Day Downward Trend: A Bearish Sign for McDonald's Corp
Market analysts view a three-day downward trend as a bearish sign, often prompting investors to keep a close eye on the stock for potential further declines. McDonald's Corp's recent slide in stock price has caught the attention of investors and analysts alike, as the company's stock has moved lower for three straight days following the earnings report.
Historical Data: Analyzing the Odds of a Continued Decline
To better understand the implications of this three-day decline for McDonald's Corp's future stock performance, it's essential to examine historical data. When looking at past situations where MCD experienced a similar three-day decline, we find that in 98 of 258 cases, the stock price continued to decline within the following month. This translates to a 38% chance of a continued downward trend.
What This Means for Investors
While a 38% probability of a continued downward trend for McDonald's Corp's stock might seem concerning, it's crucial for investors to remember that this figure is not a guarantee. The historical data serves as a useful reference, but it doesn't provide a definitive prediction for the stock's future performance.
Investors should consider other factors affecting McDonald's Corp's stock price, such as recent earnings reports, industry trends, and overall market performance. Furthermore, it's essential to assess one's risk tolerance and investment strategy when deciding whether to hold, buy, or sell MCD shares.
McDonald's Corp's recent three-day downward trend is considered a bearish sign, leading many investors to keep a close eye on the stock for potential further declines. Historical data suggests that there is a 38% chance of a continued downward trend in the following month. However, investors should be cautious not to rely solely on this probability and should consider a variety of factors when making investment decisions regarding McDonald's Corp's stock.
MCD's RSI Indicator climbs out of oversold territory
The RSI Indicator for MCD moved out of oversold territory on June 27, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In of the 20 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 52 cases where MCD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 01, 2025. You may want to consider a long position or call options on MCD as a result. In of 94 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 July 01, 2025. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
MCD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
MCD moved below its 50-day moving average on June 05, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MCD crossed bearishly below the 50-day moving average on June 09, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for MCD entered a downward trend on July 01, 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 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (7.700). P/E Ratio (26.257) is within average values for comparable stocks, (42.877). Projected Growth (PEG Ratio) (2.648) is also within normal values, averaging (1.925). Dividend Yield (0.023) settles around the average of (0.051) among similar stocks. P/S Ratio (8.333) is also within normal values, averaging (8.714).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. MCD’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an operator of food restaurant chain
Industry Restaurants
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