Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Aug 05, 2019
McDonald’s (MCD) pulls back to lower rail of upwardly sloped channel after earnings report

McDonald’s (MCD) pulls back to lower rail of upwardly sloped channel after earnings report

McDonald’s (MCD) reported second quarter earnings results back on July 26. The company reported earnings of $2.05 per share on the quarter and that matched the estimates of analysts. Initially the stock moved higher after the report, but it pulled back with the rest of the market over the past week.

Over the last three years, the company has been averaging earnings growth of 15% per year and the second quarter results were up 3% from the previous year. Sales have been declining by 7% per year over the last three years and they were flat in the second quarter of 2019 compared to the second quarter of 2018. The sales results are being impacted by the company’s plans to shift locations from corporate ownership to more franchise status.

Looking at the company’s management efficiency measurements we see a profit margin of 28.3% and an operating margin of 41.8%. I looked at three different sites for a return on equity, but none of them had an ROE for McDonald’s. Regardless, the margins are well above average. It is also worth noting that the company doesn’t have any long-term debt.

As far as valuations for McDonald’s, the P/E ratio is a very reasonable 28.2 and the stock is trading at a discount to its book value.

As far as the technical picture, the stock has performed very well over the last three years. It has been trending higher within a trend channel on the weekly chart and the stock was at the upper rail of that channel ahead of earnings. The more immediate outlook is on the daily chart and it shows how the stock has been climbing in the last six months. Like on the weekly chart, the daily chart shows a trend channel defining the various cycles within the overall trend.

The stock dropped to the lower rail of the channel in the past week and that rail was formed by connecting the lows from February and May.

We also see that the daily stochastic readings dipped down to oversold territory in the past week and made a bullish crossover on August 2. In addition to this bullish signal, the Tickeron overview for McDonald’s shows other bullish signs for the stock.

We this from that overview:

MCD in Uptrend: price expected to rise as it breaks its lower Bollinger Band on July 31, 2019.

This price move signals that MCD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 22 of 31 cases where MCD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 71%.

Tickeron’s Trend Prediction Engine also generated a bullish signal for the stock on August 1 and that signal showed a confidence level of 72%. The signal calls for a gain of at least 4% within the next month.

Looking at the sentiment indicators for McDonald’s we see average readings for the stock. There are 31 analysts following the stock and 24 of them have the stock rated as a “buy”. The other seven have the stock rated as a “hold”. With 77% of all ratings being buy ratings, the buy percentage is slightly above average.

The short-interest ratio for the stock is at 2.5 currently with 6.8 million shares sold short and average daily trading volume of 2.78 million. The number of shares sold short-changed very little from the end of June through the middle of July.

Related Tickers: MCD
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

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Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

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Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

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The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

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Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
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Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
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Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
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Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
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Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
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US unemployment rate jumps to 14.7%, the highest in series history

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