McDonald's Corporation (MCD): Today's Featured Services Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

McDonald's Corporation ( MCD) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, McDonald's Corporation fell $1.07 (-1.1%) to $94.38 on average volume. Throughout the day, 4,189,272 shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5,169,400 shares. The stock ranged in price between $94.27-$95.58 after having opened the day at $95.44 as compared to the previous trading day's close of $95.45. Other companies within the Services sector that declined today were: General Employment ( JOB), down 13.8%, WidePoint Corporation ( WYY), down 10.6%, TOP Ships ( TOPS), down 6.8% and Swisher Hygiene ( SWSH), down 6.2%.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $94.0 billion and is part of the leisure industry. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Point.360 ( PTSX), up 16.0%, Rick's Cabaret International ( RICK), up 13.5%, Odyssey Marine Exploration ( OMEX), up 11.9% and Armco Metals Holdings ( AMCO), up 11.5% , were all gainers within the services sector with Melco Crown Entertainment ( MPEL) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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