Analyst: Sell McDonald's Corporation (NYSE:MCD)

Stock Traders Daily has placed a sell rating on shares of McDonald's Corporation (NYSE:MCD).  The stock has extended relative valuation levels and appears rich when earnings growth rates are compared to P/E multiples.  The high current PEG Ratios makes MCD look unattractive to value oriented investors, and we do not consider MCD to be a growth story.

Given market related risks we believe shares of MCD are particularly vulnerable and we would sell MCD to protect assets accordingly.

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Te Dividend is okay, but it will not be enough to protect investors in our opinion and investors in MCD are likely to see assets shrink over the next 12 months.

Technical Summary

Term →Near Mid Long
Bias Strong Neutral Neutral
P1 116.21 112.96 113.78
P2 118.44 118.20 122.49
P3 119.92 123.24 130.79

Long Term Trading Plans for MCD

March 10, 2016, 2:46 pm ET

The technical Summary and associated Trading Plans for MCD listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for MCD. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

MCD - (Long) Support Plan

Buy over 113.78 target 122.49 stop loss @ 113.52.
The technical summary data tells us to buy MCD near 113.78 with an upside target of 122.49. This data also tells us to set a stop loss @ 113.52 to protect against excessive loss in case the stock begins to move against the trade. 113.78 is the first level of support below 119.54 , and by rule, any test of support is a buy signal. In this case, support 113.78 would be being tested, so a buy signal would exist.

MCD - (Short) Resistance Plan

Short under 122.49 target 113.78 stop loss @ 122.75.
The technical summary data is suggesting a short of MCD as it gets near 122.49 with a downside target of 113.78. We should have a stop loss in place at 122.75 though. 122.49 is the first level of resistance above 119.54, and by rule, any test of resistance is a short signal. In this case, if resistance 122.49 is being tested, so a short signal would exist.


MCD Long Term Analysis


MCD EPS Analysis

MCD Dividend Chart

MCD Revenue chart

MCD Growth rate - Quarterly

MCD Growth rate - Yearly

MCD PE chart

MCD PEG chart

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