Good MorningThe selling on Wall Street intensified Friday after the non-farm payroll report renewed fears of recession. The data was weaker than expected and compounded by rising unemployment, suggesting the labor market is stalling. The risk is that the FOMC has waited too long to make the first interest rate cut and may be unable to stave off economic contraction. In that scenario, the selling may not end for several quarters and could take the S&P 500 to a multi-year low.
The caveat for investors is that labor data isn't bad, only slowing, and the FOMC is telegraphing the first cut for September. The more likely scenario is that the market will undergo a brief correction and regain traction later in the year. Earnings growth is still forecasted over the next six quarters, an alluring carrot for equity markets. Featured: Musk’s new company could top a trillion? (Paradigm Press) 
|
Markets | | |
Recently, weight loss and diabetes watch company DexCom Inc. (NASDAQ: DXCM) stock plummeted by over 44% on a surprisingly bad quarterly earnings report. Management guided lower – much lower – than analysts had expected to see revenue and earnings per share (EPS), and it all had to do w... Read the Full Story |
|
From Our PartnersThe Wall Street Journal has sounded the alarm, hinting at an impending catastrophe on the horizon. It's time for every conservative American to rally and defend their financial future against this radical agenda.
As the Biden administration pushes forward with its currency reset agenda, the need to act swiftly has never been more critical. | | | | Discover the ONLY Three Steps You Must Take Immediately |
|
Markets | | |
Investors are now worried about the market crashing, with the U.S. 10-year treasury bond finally breaking below a 4% yield for the first time since the Federal Reserve (the Fed) started hiking interest rates to combat inflation and a red-hot economy. The S&P 500 is trading lower by up to 1.5% ... Read the Full Story |
|
Markets | | |
Snap Inc. (NYSE: SNAP), the parent company of the popular quick messaging app Snapchat, saw its stock drop in after-hours trading following the release of Snap’s earnings report for the second quarter of 2024. Despite exceeding expectations in certain areas, Snap’s stock is projected... Read the Full Story |
|
From Our PartnersIn uncertain times, savvy investors turn to reliable assets. Discover the enduring power of gold with our free guide, "The Conservative Man's Guide to Buying Physical Gold Online." Click below to opt-in. | | | | [Download Your Free Guide Today] |
|
Stocks | | | The turmoil shaking global financial markets reflects a sudden fear that the Federal Reserve may have held its key interest rate too high for too long, heightening the risk of a U.S. recession.Economists and Wall Street traders now expect the Fed to cut its benchmark rate, which influences borrowing... Read the Full Story |
|
Markets | | | Japan’s Nikkei 225 stock index plunged more than 12% on Monday as investors worried that the U.S. economy may be in worse shape than had been expected and dumped a wide range of shares. The Nikkei index fell 4,451.28 points to 31,458.42. It dropped 5.8% on Friday and has now logged its worst two-day... Read the Full Story |
|
From Our PartnersWall Street icon who forecasted Black Monday and dot-com crash says a new economic event will hit the American economy like a tsunami. It doesn't matter if you're blue collar, white collar, working, or retired. He says, "I am literally afraid for my family's future. I'm taking drastic steps to prepare for what I know will inevitably happen next." | | | | Click here to see his new prediction |
|
Markets | | | Finance and the financial services sector are constantly evolving, with new investment opportunities emerging regularly. One of the most notable examples of this is Bitcoin (BTC), a digital currency that operates independently of central banks and governments.
Founded on the principles of blockchai... Read the Full Story |
|
Stocks | | | Billionaire Warren Buffett slashed Berkshire Hathaway’s massive Apple stake in a move that could prove unsettling for the broader stock market because the investor is so revered and there had been little positive financial news lately Read the Full Story |
|
Markets | | | The struggling drugstore chain Walgreens will get about $1.1 billion for selling another slice of its stake in drug distributor Cencora.Walgreens said after markets closed Thursday that it will use the proceeds mostly to pay down debt and for general corporate purposes. The deal reduces Walgreens’ s... Read the Full Story |
|
Markets | | | Exxon Mobil recorded one of its largest second-quarter profits in a decade on surging quarterly production from oil and gas fields in Guyana and the Permian basin in the U.S., as well its $60 billion acquisition of Pioneer Natural Resources. The Texas oil and gas giant earned $9.24 billion, or $2.14... Read the Full Story |
|
Markets | | |
Intel (NASDAQ: INTC) has historically been one of the world’s leading semiconductor companies. That position has changed, especially after considering its Q2 2024 earnings, released on Aug 1, 2024. Shares plummeted the day after the release, declining over 25%. The firm has now lost over h... Read the Full Story |
|
Monday's Early Bird Stock Of The Day McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K. The International Developmental Licensed Markets and Corporate segment consists of developmental licensee and affiliate markets in the McDonald’s system. The firm's products include Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, McDonald's Fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages, and other beverages. The company was founded by Raymond Albert Kroc on April 15, 1955, and is headquartered in Oak Brook, IL. | Should I Buy McDonald's Stock? MCD Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of McDonald's was last updated on Wednesday, February 19, 2025 at 9:19 PM.
McDonald's Bull Case -
Strong Dividend Yield: McDonald's Co. recently declared a quarterly dividend of $1.77 per share, translating to an annualized dividend of $7.08, which offers a yield of 2.35%. This consistent dividend payout can provide a reliable income stream for investors.
-
Robust Earnings Performance: The company reported earnings per share (EPS) of $2.83 for the latest quarter, meeting analysts' expectations. This indicates strong operational performance and can enhance investor confidence.
-
Market Capitalization: With a market capitalization of approximately $216.21 billion, McDonald's Co. is a large and stable company, which can be appealing to investors looking for less volatility in their investments.
-
Positive Stock Price Movement: The current stock price is $301.08, which reflects a solid position within its 52-week range of $243.53 to $317.90. This suggests potential for growth and stability in the stock's performance.
-
Strong Net Margin: McDonald's Co. has a net margin of 31.73%, indicating that it retains a significant portion of revenue as profit. This efficiency can be attractive to investors seeking companies with strong profitability.
McDonald's Bear Case -
Negative Return on Equity: The company has a negative return on equity of 181.63%, which may raise concerns about its ability to generate profit from shareholders' equity. This could indicate inefficiencies in utilizing capital.
-
Insider Selling: Recent insider transactions show that executives, including the CEO, have sold significant amounts of stock, which could signal a lack of confidence in the company's future performance.
-
High Price-to-Earnings Ratio: With a price-to-earnings (P/E) ratio of 26.49, McDonald's Co. may be considered overvalued compared to its earnings, which could deter value-focused investors.
-
Market Volatility: The stock has a beta of 0.74, indicating lower volatility compared to the market. While this can be seen as a pro, it may also suggest limited growth potential in a bullish market.
-
Dividend Payout Ratio: The current dividend payout ratio is 62.16%, which means a significant portion of earnings is being distributed as dividends. This could limit the company's ability to reinvest in growth opportunities.
| | View Today's Stock Pick |
|
