McDonalds Stock trading symbol is MCD. The selling continues today in McDonalds Stock and there are signs that the selling may continue. Concern with profits coming out of China for McDonalds due to the food quality problems has pressured McDonalds Stock to the point where if it breaks much lower it will push through the long-term support level at $92.50. China is the third largest revenue producer for McDonalds so the concern is warranted. At the same time however the stock is now trading at 16.9 times price to earnings and 12.8 times cash flow. Gross profit margins are 38.71% and the annual dividend rate of $3.24 is now up to 3.51%. With a payout ratio of 57.78% I think McDonalds stock is becoming quite attractive again. Watch for more analysts to start jumping on the “undervalued” band wagon for McDonalds stock. I don’t know if I think the stock is “undervalued” but it certainly looks fairly valued.
McDonalds Stock One Year Chart
The one year chart on McDonalds Stock below shows the extent of the recent sell-off. With the stock now down 10% and pushing hard against the Lower Bollinger Band you can see that it is challenging the one year long-term support at $92.50. The $92.50 level has held up McDonalds Stock for the past 12 months.
This is a trade alert and a strategy discussion article which views the outlook for McDonalds Stock and looks at the safety factor at this stage of the decline. Now down 10% if the stock continues much lower it will probably fall an additional 5% before bottoming. Meanwhile I have commenced my next round of trades in McDonalds Stock. The rest of this profit and income article is for members.
McDonalds Stock Trade Alert and Analysis
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