MCD (McDonald's): Strong Buy

1= Strong Buy 5=Strong Sell

Summary:

One of the most consistent stocks over the past 5-10 years has been McDonalds (MCD) and in this financial situation it still provides for perhaps one of the best buying opportunities. The companies stock price is still well above its 52 week low that it hit in early January but is also below its 52 week high of 67 which it reached in early August. While the markets have lost so much over the past year, McDonalds has essentially been flat going from 58 to 56 in the past year. Meanwhile, in the long run, from February 2003 to now, McDonald's stock has trippled in price while the Nasdaq has only gained 20 percent and the Dow Jones has lost nearly 10 percent. The companies ability to stay even during the worse economic times and outperform the indexes so significantly during periods of economic growth makes this stock an excellent buying opportunity. Even if you believe that the markets will fall and continue to recede, then what better bargain than to buy a stock that will likely not go down a significant ammount. And if that isnt enough, the company pays dividend with a 3.56 percent yield, surprisingly high for such a solid stock. Should the global financial crisis become more regionalized affecting only America or only a specific nation, McDonalds is so intertwined into the world's global economy that it will not be significantly affected. With a p/e of 14 and a beta of .77 this stock has plenty of room for growth and is solid enough not to crash. Subsequently, the fundamentals and technicals of this stock make it an excellent buy during a period in our history where we need companies that are safe and stable.