(MCD) McDonalds Rated BUY as Earnings Season Rolls On – ValuEngine.com

So far this week we have provided data on Apple, United Technologies, and US Airways ahead of the earnings reports. Today we finish off our earnings week coverage with our data on fast food giant McDonalds (MCD) Analysts are looking for revenues of $6.63 Billion. The company is expected to post EPS of $1.28.

McDonald’s Corporation develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people.

ValuEngine has issued a BUY recommendation for MCDONALDS CORP on Jul. 21, 2011. Based on the information we have gathered and our resulting research, we feel that MCDONALDS CORP has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, risk and volatility.

Based on available data as of Jul. 21, 2011, we believe that MCD should be trading at $76.31. This makes MCD 13.05% overvalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For MCD, we base this on actual earnings per share for the previous four quarters of $4.87, forecasted EPS for the next four quarters of $5.35, and correlations to the 30- year Treasury bond yield of 4.26%.

Our Chief Market Strategist Richard Suttmeier discussed the technicals for the stock earlier this week in his column on Forbes.com. Suttmeier’s analysis showed that McDonald’s “has declining Momentum on its daily chart with an all time high of $86.46 set on July 14th. My annual value level is $64.93 with a semiannual pivot at $84.47 and annual risky level at $88.81.”

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