Since the beginning of this year, McDonald’s (NYSE: MCD) has experienced impressive double-digit gains, leading investors to wonder whether the golden arches will continue to maintain this growth over the next 12 months in the face of current economic conditions and increasing competition.
According to ratings from 34 analysts over the past three months, McDonald’s stock has received an overall ‘buy’ rating, with 21 experts recommending a ‘strong buy’ and five suggesting a ‘buy.’ Interestingly, none of the analysts recommend selling the stock, while eight advise holding.
Looking ahead, 30 analysts have provided a 1-year price forecast for MCD stock, with an average prediction of a 7.02% increase in price to $316.93. However, there is a wide range of price predictions, with the highest at $346 and the lowest at $284, based on its current price of $296.14.
MCD price chart analysis
Based on its yearly performance, McDonald’s has outperformed 91% of all other stocks. Furthermore, the gains achieved by MCD over the past year have been consistent and spread out over this period, indicating a steady upward trend.
Another positive sign is that MCD is currently trading near its 52-week high, which suggests that investors have confidence in the company’s future growth prospects.
Comparing MCD to the broader market, we see that the S&P500 Index is trading in the upper part of its 52-week range but not near its new highs, while MCD is leading the market. This indicates that MCD is a strong performer in its sector and has outpaced the broader market.
In the last month, MCD has been trading within a tight range of $288.18 to $298.86. However, a pullback is currently taking place, which may present a good opportunity for entry.
MCD stock has a support zone at $274.27 to $274.38, formed by multiple trend lines across different time frames. The stock also faces a resistance zone at $296.35 to $298.08, where it may encounter selling pressure.
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