Is Mcdonalds a blue chip stock?
Blue-Chip Stocks to Buy: McDonald's (MCD)
Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., Microsoft, American Express, McDonald's, and Boeing Co.
The restaurant chain looks appealing after its recent stock-price pullback. If you're hungry for a cheap stock to put in your portfolio, you're in luck. McDonald's (MCD -1.26%) shares have sat out of the market rally in the past year, barely rising since March 2023 compared to the 31% spike in the S&P 500.
Apple, AB InBev, and Johnson & Johnson may be the blue-chip stocks you have been looking to buy and hold to add that extra stability to your portfolio. AAPL, BUD and JNJ are three blue-chip stocks to buy and hold as they emerge as a beacon of stability in the wake of recent financial turbulence.
| Company | Market Cap (Rs. cr) | P/B Value |
|---|---|---|
| Wipro | 249,400 crores | 3.51 |
| Bajaj Auto | 215,100 crores | 7.34 |
| Adani Ports & Special Economic Zone | 247,700 crores | 5.09 |
| ITC Limited | 568,600 crores | 8.23 |
McDonald's Corporation Common Stock (MCD)
With their proven track record, regular dividends, and lower risk profiles, blue chip companies like Reliance Industries, TCS, and HDFC Bank are poised to bolster portfolios, ensuring steady growth and safeguarding investments against market volatility.
Long-term, McDonald's has been a winner. Its shares have returned 15% annualized over the past decade, including reinvested dividends, outpacing the S&P 500's 13%, and it's done it with far less volatility.
The stock is still quite hot
Wall Street values the company's resilient business model and 49-year record of dividend growth. The stock averaged a price-to-earnings ratio of almost 26 over the past decade, and shares are trading at a forward P/E ratio of 23 today.
Stock Price Forecast
The 26 analysts with 12-month price forecasts for McDonald's stock have an average target of 318.85, with a low estimate of 278 and a high estimate of 355. The average target predicts an increase of 18.67% from the current stock price of 268.69.
Which stock will boom in 2024?
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
| Stock | Expected Change in Stock Price* |
|---|---|
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
| Intuit Inc. (INTU) | 11.1% |
| Caterpillar Inc. (CAT) | 0.5% |
Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.
- Stock to buy today: Unichem Laboratories (₹454.70): BUY.
- Stock to buy today: NCC (₹170.70): BUY.
- Stock to buy today: EIH (₹265.55): BUY.
- Stock to buy today: VIP Industries (₹652.90) – BUY.
- Stock to buy today: Star Cement (₹165): BUY.
- Stock to buy today: Sunteck Realty (₹450.60): BUY.
- Stock to buy today: KPR Mill (₹776): BUY.
Advantages. Low Risk: As industry leaders with reliable cash flows and long histories of paying their debts, blue chip companies are considered to be low risk.
| Ticker | Company | Performance (1 Year) |
|---|---|---|
| MU | Micron Technology Inc. | 98.87% |
| AMD | Advanced Micro Devices Inc. | 90.87% |
| KLAC | KLA Corp. | 88.29% |
| ENTG | Entegris Inc | 84.90% |
Institutional Ownership and Shareholders
McDonald's Corporation (NYSE:MCD) institutional ownership structure shows current positions in the company by institutions and funds, as well as latest changes in position size.
Conclusion. McDonald's is a publicly-traded company, with a considerable percentage of its shareholders being institutional. The top 5 institutions with the most significant stake in McDonald's include The Vanguard Group Inc, SSgA Funds Management Inc, BlackRock Fund Advisors, Wellington Management Co.
The all-time high McDonald's stock closing price was 298.82 on January 19, 2024. The McDonald's 52-week high stock price is 302.39, which is 13.4% above the current share price. The McDonald's 52-week low stock price is 245.73, which is 7.9% below the current share price.
By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here, we have identified three stocks from the Retail - Wholesale sector — Walmart Inc. WMT, The Home Depot, Inc. HD and Costco Wholesale Corporation COST.
How many stocks are blue-chip?
There is no official list of blue chip stocks. However, generally speaking, investors consider a member of the Dow Jones Industrial Average to be among the bluest of the blue chips. There are 30 blue chip stocks using this strict measure, since there are 30 companies in the Dow Jones.
Fortunately, there are still some great blue-chip stocks that investors can buy with confidence in 2024. Whether or not the current rally holds, these long-term, blue-chip winners are set to keep delivering steady gains for many years to come.
But if you're looking for solid long-term returns, dividend income, and lower volatility than the overall market, it is likely a good investment choice. Overall, the risk-reward profile of McDonald's stock is attractive.
Key Points
McDonald's generates huge margins that allow it to return a lot of capital to shareholders. Earnings growth for McDonald's going forward likely won't be anything to write home about. Given its steep valuation, I don't think the stock can outperform the market over the long term.
Key Takeaways. McDonald's shares slipped close to 4% Wednesday after its CFO said the fast-food chain faced a challenging environment hindering sales in the opening months of 2024. McDonald's CFO Ian Borden said lower-income customers have been pulling back spending on fast food and other types of restaurants.
