McDonald’s: A Golden Stock at its highest

Based on the company’s ability to outperform competitors in challenging environments & superior distribution network, McDonald’s stock has strong upside. Wells Fargo analysts wrote in a commentary that ‘’a hard landing for the economy has become our base case.’’ “The recent pop in the two-year Treasury yield above 3% is our catalyst, indicating a more hawkish Fed and continued risk aversion.”

“We believe the recession starts in the markets since the economy has the highest equity beta in decades—i.e., the stock sell-off weighs on sentiment, then discretionary spending, and ultimately the economy,” the analysts said. Since November 2019, the stock is up 34% compared to a 54% gain for the S&P 500. Despite underperforming the market, the stock is worth $310+/share today – a 26%+ upside. For your information, the stock outperformed some of its competitors, as Starbucks Corp. SBUX, -0.07% fell 0.07% to $72.31.
It is worth saying that with increased digital and delivery capabilities, McDonald’s has plenty of opportunities to improve.

Start Trading
in Minutes

bullet Access 10,000+ financial instruments
bullet Auto open & close positions
bullet News & economic calendar
bullet Technical indicators & charts
bullet Many more tools included

By supplying your email you agree to FP Markets privacy policy and receive future marketing materials from FP Markets. You can unsubscribe at any time.

Source - database | Page ID - 866

Get instant Updates in Telegram