What is your opinion on buy MCD (McDonald's Corp) stock?
IMHO, I think this one has the potential to perform in a few years like Google stock has in spite of the overall economic climate. There has been some pull backs on MCD's price, but if you look at its price graph, it has been continual upward..... However, it will eventually come to an end, and no one knows when that will be.
What is your take on MCD? Do you buy now when it's rallying, or wait hoping for it to pull back some?
- Anonymous1 decade agoFavorite Answer
My opinion on MCD is as follows. MCD has a 52wk Range between 53.88 - 73.82, right now it closed at 73.25 and has a projection to hit 78.88 in the next 12 months...that's not even 5 bucks in profit. The dividend yield is only 3.1% for the year. If you really have your heart set on MDC it seems to rally towards the end of the year but even then it is not a big mover. There was only 9% growth for last year and this year the growth is only at 28%, really lagging behind most.
If you want to make some money on MCD you could look at buying some December 2010 65/70 call spread and you could make 24% return if the stock stays above 70....and it closed 73.25 today. If you don't want to wait til December then how about the Sep 2010 67./72.5 call option, that could give you 17% in 4 week as long as MCD stays above $72.50.Source(s): http://moneymakeslifeeasier.com/ yahoo finance bestchoice software.com
- KarenLv 41 decade ago
MCD is long past being a growth stock like GOOG. That being said, it is still a great stock. If I were going to buy, here's how I would do it. Wait for a pullback to the high $70, low $71 range and see how the it acts. It might be worth a shot at that level even though the overall market looks awful.Source(s): Better stock trading techniques -- http://www.tradingsystemssite.com
- Anonymous1 decade ago
MCD is a great company, no doubts about it. The stock also pays a decent dividend.
I don't think it's that fair to compare it with GOOG since GOOG is much more volatile and tends to move much faster than MCD.
I personally prefer to buy on weakness, and that's the only reason why I won't buy MCD right now.
- Blazenskyy.comLv 71 decade ago
You can always dollar cost average into the stock with the DRIP program. The stock will probably continue to gradually climb since most of their new growth is in China. They also made money with investments into Redbox DVD kiosks and Chipotle. It's a good outlook for the stock since they have a great business model that works with increase profit margins and sales with their new coffee and frozen fraps along with healthy salads and wraps.