#7 - McDonald’s (NYSE:MCD)
Rumors of the demise of the Golden Arches looks to have been greatly exaggerated. McDonald’s Corp. (NYSE: MCD) stock is up 21% in the three months ending October 16, 2024. That's pushed the stock higher for the year and increased the gain to over 25% in the last 12 months.
The company’s stock has been under pressure after missing on the bottom line for two consecutive quarters. Plus, the company reported a decline in same-store sales for the first time in over 20 years. The reasons given spanned everything from an inflation-strapped consumer to the proliferation of GLP-1 drugs.
But a volatile market reminds investors of the win-win nature of McDonald’s stock. That is, when investors believe growth stocks are overvalued, they turn to MCD for a rock-solid dividend that has grown for 49 consecutive years and has a 2.26% yield. And when the consumer begins to spend, investors will realize how the company’s embrace of digital technology will sustain its bottom line.
About McDonald's
McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.
Read More - Current Price
- $295.24
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 12 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $319.46 (8.2% Upside)
Sharp-eyed investors may give some of the stocks on this list the side-eye based on valuation. That is, the fundamentals for these stocks may make them expensive to own right now. Two common metrics used are the price-to-earnings (P/E) and price-to-sales (P/S) ratios. Investors may also look at the stock's performance relative to its 52-week average.
However, it's important to remember that many premium stocks carry a premium value for a reason, just as stocks can be inexpensive for a reason. More importantly, if you're looking to buy and hold a stock for the long term, a high valuation in the short term doesn't matter as much as the opportunity you have for future gains.
Market timing is tricky, but having the discipline to use time to your advantage is the real key to a buy-and-hold investment strategy. Over time, best-in-class companies like the ones in this presentation offer investors the best chance for market-beating gains.
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